Growing up in the low-income south side of Oklahoma City to working-class parents, Paycom CEO Chad Richison developed a respect for people’s hard work, which eventually translated into a desire for developing employee-centric processes. With this goal in mind, Richison founded Paycom in 1998 as one of the first companies to completely process payrolls online and to integrate that and other services into a single app with an easy-to-use interface.
Richison, who was then working in an entrenched payroll and human resources company, saw how payroll data, time-off requests, attendance records, benefits files, tax-withholding forms and employee reviews were scattered all over. The status quo was, he concluded, inefficient, error-prone, and in need of repair.
Furthermore, it was far from being user-friendly. Fixing it was a massive opportunity and Richison grabbed it. He started Paycom as an internet-based payroll service provider catering to businesses of all kinds and slowly expanded it to several domains such as HR management and employee relations management. Dedicated to minimizing tedious paperwork, today, the Oklahoma-based payroll processor and HR software specialist ensures a fully automated handling of payroll processes that focuses on employee self-service.
Paycom helps handle everything that any organization struggling with payroll management issues can think of—from simplifying bank reconciliation to balancing general ledger to managing expenses and taxes to tackling garnishment orders. Paycom packs all these services and more into its centralized payroll system where data needs to be entered only once, and it’s synchronized instantly system-wide. This takes care of a major chunk of the hassles that companies face in managing payrolls.
One of the other significant challenges that businesses regularly face is the extra task of reconciling checks as soon as the wages are paid. Paycom, with its bank reconciliation software, Paycom Pay, addresses this by issuing live checks from Paycom bank accounts, thereby reducing general ledger transactions and lowering bank charges in case of failed payments. For employees opting out of the direct deposit, Paycom Pay issues paper checks from its own account and notifies the company in case the checks remain uncashed for more than 180 days. Moreover, Paycom Pay also ensures the drafting of net payroll, taxes and fees from the companies’ account once per payroll, relieving employers from worries of employee wage payments.
Additionally, Paycom’s customizable general ledger software GL Concierge makes the payroll portion of the company’s ledger easily accessible by combining payroll GL reports from multiple Employee Identification Numbers (EIN) and making them available on a real-time basis with easily tracked changes in a transparent manner. GL Concierge also allows the creation of infinite GL mapping points and generation of mapped GL reports that can be previewed and run in any file layout, enabling easy tracking of accounting data.
Notably, Paycom’s expense management software does more than just manage expenses. Apart from automating expense allocation to general ledger and providing customizable tools to address companies’ requirements, Paycom’s expense tracking software allows employees to simply upload or email receipts to claim reimbursements through its self-service app that automatically syncs with payroll. What’s more? Employee mileage tracking tools like Mileage Tracker and FAVR work seamlessly with Paycom’s expense management tools to help employees accurately track and submit business trip details while simultaneously letting employers customize their business mileage rate in compliance with IRS regulations. Continuing its streak with automation, Paycom’s payroll tax management software simplifies the entire tax payment process of organizations. From handling IRS forms to converting and balancing payroll tax totals to managing state and local jurisdiction tax laws, Paycom ensures filing payroll tax becomes a smooth task for organizations. Paycom’s garnishment management software further reduces the hassle of firms dealing with court orders seeking debt collection from any employee—even from multiple states. By calculating, reconciling, and balancing payment amounts and deductions, sending notifications to employees facing garnishment orders, informing third-party payees of changes in employee status, Paycom’s automated processes not only ensures reduction of time and resources spent in handling garnishment issues but also help in mitigating employers’ liability.
Simplifying processes forms the bedrock of Paycom’s objective. “At Paycom, we’re always searching for a deficiency in the process, not the person,” says Richison. Evidently, Paycom works toward innovating its product line. Keeping in mind the payroll needs of both employers and their employees, Paycom’s innovative online payroll processing solution makes payroll information 24*7 accessible at any time from anywhere. Its highly synchronized processes make data re-entry redundant, with changes to payroll data being reflected instantly. Coupled with features like batch-editing, effective dating, historical transaction comparison, payroll processing becomes a breeze—especially with smart tools like Payroll Grid designed to ensure error-free payroll processing by deploying scalability, flexibility, customization, and task delegation.
The firm is counting on the rapid advance of technology to give it an edge. In fact, one of Paycom’s latest offerings, Direct Data Exchange, allows clients to see how often their employees engage with the software and identify areas where it isn’t being used to its full potential. Going forward, Paycom intends to continue innovating its products and services. “Our goal here is to ... expand into areas outside of what has traditionally been our core,” Richison confirms. “We have a very ambitious product innovation roadmap, which is a key driver of our success, and we will continue to expand our R&D team with high-quality talent.”