‍Smart Payroll: New Enhancements in Releases 2025.08 and 2025.10

The Smart Payroll feature—introduced in Release 2025.08—is designed to streamline your payroll processing, strengthen compliance, and help you make better payroll decisions. This functionality is being delivered in phases, with each release adding new capabilities that reduce manual checks and improve real-time accuracy.

What’s Included in Smart Payroll?

2025.08: Automatic Timecard Discrepancy Detection

The initial release introduced automated detection of timecard discrepancies based on your configured rules and compliance settings.

As new timecard entries are created, the system evaluates them in real time, comparing each transaction against employee history and compliance rules. Any discrepancies are flagged so you can quickly accept or correct them before posting.

2025.10: Four New Timecard Validation Rules

Release 2025.10 expands Smart Payroll with additional validation rules designed to catch more issues before posting.

Key Components of Smart Payroll

HQ State Compliance (US only)

A new form used to set up state-level compliance data including:

• Department of Labor requirements
• Department of Revenue requirements
• Meal break regulations

Configurations are set by country, state, and effective date.

HQ States

A new Compliance tab has been added, giving you access to the HQ State Compliance form. You can create or update compliance records directly from this tab.

PR Company Parameters

A new Enable Timecard Compliance checkbox and Timecard Compliance tab have been added.

Enabling Timecard Compliance:

• Activates the feature
• Unlocks access to the Timecard Compliance tab and the PR Validation Rules form

PR Timecard Validation Rules

This new form allows you to:

• Select validation rules
• Set severity levels
• Define parameter values used during validation

Severity levels determine how the system handles detected discrepancies.

PR Employees

A new FLSA Exempt checkbox indicates whether an employee is exempt under the Fair Labor Standards Act. This information is used to validate certain compliance rules, such as minimum wage.

PR Timecard Compliance

This form displays all violated timecard rules when processing a timecard batch—only if:

• Timecard Compliance is enabled
• The violated rules have a severity of Allowed with Warning or Not Allowed
• At least one discrepancy is found

You must accept, correct, or delete all flagged records before posting the batch.

PR Pay Period Control

A new Compliance tab shows all discrepancies acknowledged (and accepted without correction) for the selected PR Group and pay period—providing a clear audit trail.

New Validation Rules in Release 2025.10

1. Multiple Site Detection Rule

Flags issues when an employee appears to be working at multiple locations at the same time.

An error is shown when:

• In/out times overlap at different locations
• In/out times are identical at different locations

The message includes employee ID, locations, and timestamps for quick review.

2. Pay Rate Validation Rule

This rule checks for:

• Pay rate mismatches between the timecard and the employee’s official record
• Patterns of inconsistent rate changes
• Correct overtime calculations based on regular rate and earning factors

3. Minimum Wage Compliance Rule

Automatically ensures non-exempt employees (FLSA Exempt unchecked) meet state minimum wage requirements.

Validation includes:

• Matching the timecard date to the correct state minimum wage effective date
• Comparing employee pay rate to the state minimum wage
• Flagging entries below the state minimum

4. New State or Local Code Rule

Detects new state or local tax codes appearing in an employee's history without a documented address change.

If a new code is found:

• The system checks whether a state-specific withholding certificate is required
• It confirms whether proper setup exists
• It flags missing or incomplete state setup when needed

‍

If you would like our assistance in setting up Smart Payroll, please visit our website by click here.