Payroll Processing

What are my choices with xTuple for Payroll Processing?

Choose from third-party services, integration with TimeTrex Professional or Community Edition, or xTuple's Time & Attendance Module

• Third-party services (such as ADP® Payroll Services, Paychex®, Intuit®, etc.) — manage all taxes, reporting, and employee payments via check or direct deposit. Employee time is entered into the service's website, and a simple General Ledger (G/L) entry is made to account for employee expenses. (See "Introduction to Payroll Integration" video below)
• Integration with TimeTrex — an open platform time tracking and payroll application. All employee time is entered in TimeTrex, and an xTuple package imports the G/L entries based on mapping setup within TimeTrex. TimeTrex also supports direct deposit natively, or checks may be printed in either system. (See "How to Install and Run TimeTrex" video below)
• xTuple Time & Attendance — if you'd prefer to capture employee time within xTuple, use xTuple's Time & Attendance module, which adds sophisticated time clock functionality which allows labor expense to be allocated to Projects, Work Orders, or overhead categories. An Export Wizard could feed employee and time information to the service of your choice (outside third-party service or TimeTrex, depending upon your preference for options 1 or 2 above).

Why would I choose to outsource this business activity to a third-party service?

Payroll processing can be a complex undertaking and is a very specific need for your business. There are compliance issues with federal, state, and even local income tax regulations — as well as employee privacy protection to consider. When thinking about your ERP system, you can choose to track payroll in whatever level of detail is most appropriate for your business.

For many companies, it's as simple as a quick, manual lump-sum entry into one G/L account twice per month, cut-and-pasted from a service such as ADP Payroll Services or Paychex®. Other companies may choose to have a more granular detail in the ERP system, tracking employee costs by groups, even at the level of every employee associated with his or her own G/L Payroll expense account(s). Some companies may want to print payroll checks themselves, while others do not.