Category Archives: Payroll

Why is TimeControl so popular with the Payroll Department?

TimeControl Payday, Chris Vandersluis, Christopher Vandersluis, Christopher Peter VandersluisWe often talk about TimeControl in association with project management tools but, because it is a multi-function timesheet system, TimeControl is often managed by the Payroll department.  What is it about TimeControl that makes it so popular with Payroll Departments?

First of all, let’s acknowledge that virtually every Payroll system has some kind of timesheet attached to it. We have nothing bad to say about any of them.  But Payroll timesheets are single purpose.  They’re designed to give that particular Payroll system what it needs to process employee pay.  The attractiveness of TimeControl is that it can be used not only for Payroll but also for updating Project Management, Human Resources, Billing, Job Costing and other internal systems and processes.  The benefit for Payroll is, that if the timesheet can do what they need, then everyone in the organization can be using one timesheet instead of several and that will create huge efficiencies in reducing reconciliation between disparate systems.  TimeControl was designed from its inception to meet the needs of Payroll.

So, what are some aspects of TimeControl that make Payroll happy?

It’s Auditable

If a project finance report is off by a hundred dollars or more, no one gets too excited.  But, if a paycheck is off by a single penny, there is all kinds of upset.  So, all entries, changes and approvals of time in the TimeControl timesheet is tracked and is completely auditable.  Even post posting changes are traced on a line-by-line basis.  This is an essential element of a Payroll system.  If the numbers are questioned, they can be recovered from the original entry and any changes will be immediately visible.

Approvals

If your timesheet is going to Payroll, then it almost certainly has to go through some level of approval.  It might be very simple or have multiple levels but knowing that the data that arrives into the Payroll system has passed the approvals required is a must.

Automated Validation Rules

When we explain this to prospective clients, the eyes of the Payroll staff light up.  TimeControl can have as many automated Validation Rules as desired.  A rule might be simple like “for salaried staff, no timesheet should be more than 24 hours a day” or “no salaried person can book more than 40 hours of regular (meaning paid-for) time in a week. Or a rule could be complex like “your timesheet cannot have more than 8 hours of sick leave on a weekday and no sick leave at all on a weekend”.  You get the idea.  Some clients have a handful of validation rules.  Some clients have dozens or more.  It’s all about catching potential and obvious errors at the point of entry rather than in a long cycle where someone has to start communicating from Payroll back to an employee about timesheet problems affecting their pay.

Validation Rules can be errors which must be corrected before the timesheet is released or they might just be a warning like “Be advised you have now used all of your paid-for sick leave.”  It’s up to the client to determine what rules are important to create in TimeControl.

Accommodating both Wage and Salary staff at the same time

Rules for Payroll for salaried employees and wage employees are often quite different.  Salary employees, for example, rarely are paid overtime.  Wage employees are often paid for overtime.  Some organizations want to pay overtime at different rates.  “Time-and-a-half” or “Double-time” are common requests.  Some organizations want to give employees an option to book their overtime into a bank to be used to take time off later.  All of these options and more are a part of TimeControl.  This means that both Wage and Salary staff are easily managed within the same system even if the calculations and rules are different.  Vacation time for example might be calculated at the end of each month as a number of days of vacation earned for the last 30 days for salaried staff.  Wage staff might have vacation accrued automatically by TimeControl also but calculated based on the number of hours worked that week.  Two different calculations, both handled in the same system.

Rates for Payroll, Billing and Project Management at the same time

Payroll’s perspective on rates is what will result in an employee’s paycheck.  But the Billing department looks at Rates differently.  First of all, the values of what we bill at vs. what we pay are almost always different and secondly, there will be hours counted for Payroll that might not be counted for Billing.  Project Management usually uses an aggregate or average rate to keep their reporting simpler.  TimeControl handles all of this and much, much more by allowing distinct values for each rate code.  So, for a particular employee, TimeControl might record their pay rate as $40, their billing rate at $60 and their project rate at $50.  Plus, security in TimeControl goes all the way to the field level.  Employees are almost never shown the values associated to their timesheet and individual pay rates are almost always restricted to only the limited number of Payroll staff who are allowed to see them.

Batch Transfer

Once the timesheets are complete in TimeControl, the data usually needs to go somewhere else; sometimes to several somewhere else’s.  TimeControl’s export mechanisms can track the batch of exported records so that a timesheet line is never accidentally sent twice.  Even after adjustments and corrections, only the new changed records are sent.  Batch Transfers are kept in TimeControl so a batch could be recreated if necessary.  The ability to know what was sent to the Payroll system and when and know that those records won’t ever be sent twice to inadvertently doubling someone’s pay is a favorite with Payroll.

What about Contractors?

As we’ve described in recent blog posts, TimeControl can accommodate both employees and contractors within the same time.  These records can be flagged distinctly so the contractor hours don’t go to Payroll, but rather to Accounts Payable and the hours of both employees and contractors can go to Billing.  Sound confusing?  It’s nothing compared to keeping separate systems and then trying to reconcile them later.  TimeControl was built for this.

What about timesheets that are only by exception?

Some employees do the same thing every day and are not tracked by Project Management, or Billing.  Imagine a receptionist for example.  They don’t even really need to do a timesheet except when there’s an exception such as a vacation day or a sick leave day.  TimeControl handles this with a function called Autofill.  If there are no exceptions, TimeControl will created an fill in an automatic timesheet for that employee with the appropriate number of hours per day.  If someone took a half-day of personal time off, then they can enter that and Autofill will just “top-up” the hours to the expected total for the day.  It can save enormous amounts of time making sure we have complete records for all the staff but not make people do work that creates no value to the company.

Is that it?

Goodness no.  There’s lots more in the TimeControl functionality that Payroll will find of interest.  Here are a couple of areas of the TimeControl website that will have more information that includes webcasts, white papers, slide shows and more:

What’s a Batch Transfer?

Did you know about Batch Transfers in TimeControl?

Think about this challenge:

You’ve got all kinds of timesheet data for the month and you are sending it out to your payroll service in an export file. The timesheet system happily creates the file for you and sends it to the pay people.

A week later it turns out you need to make a number of adjustments to the timesheet. You add hours to one thing, remove them from another and now you have a bunch of timesheet data from a previous period that you need to export. How are you going to do that? Do you re-export the whole month? Do you keep track of what changes happened manually? Do you try to find the internal update date and number to see when things were updated?

TimeControl’s Batch Transfers were designed for exactly this challenge. Each time an export is defined that includes timesheet hours, there is an option to declare the transfer a “Batch Transfer”. When this is done, each time the export is executed, all the timesheet lines that were a part of that transfer are given a number. Then when the export is run again, the user is given the option to export new records or to re-export a previous batch. This is a very important element of functionality. It means that you can request a transfer of all data from the beginning of the fiscal year and only the records which have never been exported before will be put into the transfer transaction file.

This is a function which is critical for transfers to payroll or billing. It prevents double-payments, double paycheques and makes finding and exporting on previous timesheet adjustments much more efficient and much more reliable.

Check out Batch Transfers in the Export Tables function of TimeControl

Linking TimeControl with other corporate systems

A question that is asked quite frequently is how to link TimeControl to external corporate systems. Some clients request links to move corporate data into TimeControl, some want to move data from TimeControl to another system.
One type of connection is a transfer of data into the TimeControl tables to create timesheets. Another example would be using a corporate HR system to feed new employee data to TimeControl’s employee table or a work order system to feed tasks and assignments to TimeControl’s charge tables.
It is very common for organizations to wish to transfer time and cost data from TimeControl to a corporate system for Payroll, HR or Financial uses. These links are beyond the connections to project management systems such as MS Project, Deltek or Primavera which are pre-configured in TimeControl.

There are two main methods to set up links to corporate systems. The preferred method depends on the specific requirements:

Batch Transfer:
TimeControl contains an Integration Wizard that allows the client to create a custom import or export batch file in order to link to their corporate systems. The definition of this transfer can include predefined or user-defined fields and data including data that might be required to link to the external application such as employee codes or work order numbers. The resulting file is in a CSV or XML format which allows for connection to a wide variety of applications. The data is exported against a selection filter providing data for a specific period, employee, project, business or other criteria. This is the most common way HMS clients link TimeControl to external systems such as payroll, finance, HR or ERP systems. It is easy to set up and to administer and Finance personnel are usually more comfortable with a transaction file of data that is at arm’s length from the corporate Finance system. This allows the Finance system administrators to use the Finance system’s business rules to check data on its way into their system. TimeControl supports multiple transfer templates to server multiple export requirements. If required, exported data may be batch tracked to avoid inadvertently exporting the same record twice.

This method allows transfer of data to be set up quickly and easily and allows for a final review of the data prior to being imported into the corporate system.

Direct Database Connection:
A more sophisticated connection but less commonly used method is to use direct connections at the data- base level with SQL scripts, stored procedures and triggers. Because the TimeControl data resides on a host client server database, direct data transfers are relatively simple to establish. This type of connection typically provides transparent, real time data synchronization. Setup using this method requires an internal SQL expert or an HMS consultant and the effort may vary from a few days to several weeks, depending on the complexity of the connection that is required.

This method provides a dynamic instant transfer of data which is not always required.

Manipulation of data with SQL Scripts

In some cases TimeControl clients have a requirement to manipulate the raw data that has been captured in TimeControl to support a specific requirement. It is possible to use SQL scripts and stored procedures within the TimeControl data structure to perform calculations, summarizations and other types of data manipulations. The results of this type of calculation are typically written to custom fields or tables within the TimeControl host database. This flexibility allows TimeControl to meet a great variety of client-specific requirements.

An example of this type of data processing would be multi-currency calculations done when there are several currencies in the rate table and where the costs must be reconciled to a single currency for reporting purposes.

Managing pay periods which fall in mid-week when using TimeControl

Most organizations expect to have their office staff use a weekly timesheet and indeed, this is why TimeControl is designed with a weekly timesheet structure. Once data is entered into TimeControl and approved, it is saved in a ‘Posted’ format where the structure of the data changes from a 7-day period into a day-by-day format. This allows the data to be used in a much more flexible way for reporting and exporting into various systems.

When the data is posted, it becomes very simple to request a range of dates which exactly match the needs of payroll, billing or Finance for financial reporting. Thiss works well in most cases when the data is accepted into these systems following the close of the business week and the completion of any timesheets which are included in the period.

TimeControl’s “Missing Timesheet Report” and “Missing Timesheet Email Notification” functions are important here to ensure that all timesheets have completed the approval process and are represented in the exported or reported data.

There are, however, occasions when data is so time-critical that the client wishes to report on it right up to the end of the day before even if that occurs in the middle of the week. There are organizations whose payroll requirements oblige them to pay for time up to and including yesterday’s efforts. There are other organizations that have billing that is so time sensitive that it must be sent immediately and include any hours up to and including the day before. For these organizations, TimeControl has created the Posted/Unposted report. It is specifically designed for those situations where data must be pulled from TimeControl in the middle of the week for use in a reporting situation.

The report requests a date range and then provides all the hours within that range of both posted timesheet data and unposted timesheet data from the middle of the current week. The data is listed into a single format so that it can be used in either a report or exported into Excel and then sent to other systems. If, for example a data range were to go from the 1st of September 2008 (a Monday) until the 30th of September 2008 (a Tuesday) and the requirement was to have reports completed for September billing no later than the end of business on October 1st (a Wednesday) then the Posted/Unposted report would take posted data for the weeks of September 1st, 8th, 15th and 22nd. This data would have already been collected, approved and posted. The report would also add the unposted data from Monday September 28th and Tuesday September 29th.

Since the data may be taken from a current timesheet which has not been released and therefore has not been subjected to any business rules created in the TimeControl Validation Rule module, it is important to set up a process to ensure that the data is used properly.

If your organization has one of the situations where you will require immediate mid-week access to timesheet data, there are several considerations to put into your process:

Completeness
Since the Missing Timesheet report looks at completed timesheets, it will not be useful to determine if all timesheets have data which is entered into them by the middle of the week. In our example above, the timesheets of September 28th will all be in progress. A report should be included in your process which is run by the TimeControl Administrator of “unposted data” for that date range (in our example, it would be for September 28-29) which lists all pertinent users and the time against that week. If there are missing timesheets, those users will have to be contact to ensure they enter data for this partial period.

Data Integrity
Since time is being reported at mid-week, many of the usual TimeControl tests for data integrity such as Validation Rules have not been applied to the timesheet data yet. This means that there may be errors in the partial timesheet data that is reported that may be caught by a business rule at the end of the week and will need to be corrected. Since the purpose of taking the data mid-week is to send it to another system or use it for external purposes such as payroll or billing or financial reporting, it is important to check for any adjustments after the fact.

This can be done by keeping a copy of the Posted/Unposted report which is used for the export and comparing it to the same report done following the posting process. When the report is run for the same date range after the end of the week, it will obviously be taking data A simple comparison can be done between the two reports to check for any discrepancies (Typically they would be quite rare).

Posted/Unposted process
The following would be the typical steps in a process where the Posted/Unposted process would be required:

  1. Use unposted report to check what users have not entered data for the unposted period this week
  2. Contact those users who have not entered data for the partial week and ensure they have completed any timesheet entries which must be included in this report
  3. Run the Posted/Unposted report for the complete period required
  4. Send the report to the system required (e.g. Payroll, Billing, Finance). Save a copy for reference
  5. Following the completion of this week’s timesheet approval process, run the Posted/Unposted report again for the same period and compare for any discrepancies between reports
  6. Report any discrepancies to the systems required