The first thing to say about OnSite’s payroll calculation capabilities is that they are purely optional. Some customers just use OnSite to track productive hours that can be billed to their customers and no payroll calculations are done. Others use it to track total hours which are then fed into a payroll system. And some configure OnSite to track all payroll elements throughout the pay period and then transmit gross payroll to an internal or third party payroll processing package. OnSite can accommodate from the most general calculations, all the way down to the detail associated with piece-rate compensation systems. You choose what makes sense for you. Naturally, there are no incremental software license fees for utilizing the payroll algorithms, so most of our customers do take advantage of the capabilities to further drive down their costs.
Payroll is a data intense process – employee IDs, hours worked, types of hours, overtime, shift differentials, on-call time, salary, locations and jurisdictions, and department / division data. Adding to that, the differences between exempt, non-exempt hourly, skill based wages, and contractual obligations. In OnSite, there are configuration elements for almost every conceivable method for calculating gross payroll. And it’s been our experience that exporting to a payroll processor of choice is a relatively simple procedure technologically that has tremendous ROI benefits relative to re-entering either time or payroll amounts.
One of the things that we tell our customers is, “OnSite won’t do your taxes.” It’s meant to be a clever way to express that we don’t stray from our focus on connecting to doing. More generally, it’s an admission that there are much better systems out there for applying local and federal payroll taxes, and employee benefits deductions. We figure that if we get them the gross payroll, they’ll be able to process the checks.
Billing is also a data driven process, but it relies on a different set of algorithms than payroll. Every customer will have their own methods for applying or not applying overhead rates, resource usage, normal or premium hourly rates, different types of hours, exempt ratios, materials costs, or others. Even though billing relies on different algorithms, the process is the same: configure the elements, reap the benefits – faster to invoice, faster to cash, clear management information, and better understanding revenue drivers and constraints.
Of particular importance to our customers that are government suppliers is OnSite’s ability to comply with DCAA billing requirements, and to bill using Earned Value Management.
Payroll and Billing are two processes that uniquely demonstrate the power of connecting your employees at the point of doing: one-time data capture, multiple uses, multiple benefits.