System for web-based payroll and benefits administration

• US 6,401,079 B1
• Filed: 10/01/1999
• Issued: 06/04/2002
• Est. Priority Date: 10/01/1999
• Status: Expired due to Fees

• Current Assignee: EOPS Incorporated
• Original Assignee: Inleague, Inc.
• Inventors: Kahn, David, Ferguson, Shelley S., Kreimer, Svetlana E., Saini, Barinder Singh
• Primary Examiner(s): Millin, Vincent
• Assistant Examiner(s): AKERS, GEOFFREY R
• Application Number:
  US09/411,332
• Time in Patent Office: 977 Days
• Field of Search: 705/40, 705/30, 705/32
• US Class Current: 705/30
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

The system provides an automated, centralized back-end payroll service with a full-featured web-based payroll system. Both aspects of the system have access to a central database, which includes, for example: profile information on employers and employees; timesheet, salary and hourly wage data; overtime data; employee benefit data; and information regarding third-party providers and miscellaneous payees.

The full-featured payroll system functionality is implemented in a manner that provides employers and employees (to the extent security policies permit) with a robust, data-driven user interface via a standard web browser. The central database provides the system'"'"'s back-end (server-side) payroll service functionality with constant access to the data. The system implements and enforces compliance with a wide variety of tax-related and employment-related rules across federal, state and local jurisdictions relating, for example, to overtime pay, benefit limits, payment frequency, and scheduled reporting requirements. The system can automatically receive and implement electronic updates to these rules, modifying its own functionality to conform to these changes and ensure compliance with current rules. The payroll system functionality includes the automated collection of employee data and the calculation of employee income, taxes, and pre- and post-tax deductions. The system automatically calculates overtime, imputed income, and paid-time-off benefits, and allocates the sharing of payments for other benefit programs between employers and employees, as well as enabling employers to set up custom policies. Employers can review and validate employees'"'"' paychecks and print paychecks locally and/or submit the payroll to the system'"'"'s automated back-end payroll service.

The system'"'"'s back-end payroll service functionality generates disbursement information for payments to employees, benefit providers, miscellaneous payees, and various tax authorities, subject to compliance with the system'"'"'s database of rules and automatically effects transfers of funds, payment information, and reports, whether electronic or otherwise, at the appropriate times.

Claims

1. A system for interactive calculation of payroll information including:

a first site including;

storage means storing first employer payroll-related data provided by a first employer, including an indication of hours worked during a workday by a first employer employee, and second employer payroll-related data provided by a second employer, including an indication of hours worked during a workday by a second employer employee;

calculation means for performing payroll-related calculations,

the calculation means operatively connected to the storage means,

the calculation means using the first employer payroll-related data stored in the storage means and outputting first employer processed payroll-related data for storage in the storage means, and using the second employer payroll-related data stored in the storage means and outputting second employer processed payroll-related data for storage in the storage means;

communication means for receipt of first employer payroll-related data from the first employer and second employer payroll-related data from the second employer and for communication of first employer processed payroll-related data to the first employer and second employer processed payroll-related data to the second employer, the communication means operatively connected to the storage means;

a second site associated with the first employer, the second site including;

data entry means for entry of first employer payroll-related data for communication to the first site;

communication means for communication of first employer payroll-related data to the first site and for receipt of first employer processed payroll-related data from the first site;

means for a user to review first employer processed payroll-related data received from the first site, and, in response, to enter a change to the payroll-related data used by the first site to calculate the reviewed first employer processed payroll-related data; and

means for communicating the change to the first site for use in recalculating the processed payroll-related data, and for receiving recalculated processed payroll-related data from the first site.

2. The system as in claim 1, in which:

the second site further includes means;

for the first employer to specify a format of data to be used in a report based on the first employer'"'"'s data and the second site communication means includes means for communicating the specified format to the first site; and

the first site includes means for generating and communicating reports, including means for receiving the format specification from the second site, means for formatting a report in compliance with the format specification, and means for communicating the formatted report to the second site.

3. The system as in claim 1, further including:

means at the second site for the first employer to specify a first policy applicable to a first group of first employer employees and a second policy applicable to a second group of first employer employees, the second site communication means including means for communicating the first and second policies to the first site; and

the first site calculation means includes means for applying the first policy to a portion of the first employer payroll-related data concerning the first group and for applying the second policy to a portion of the first employer payroll-related data concerning the second group.

4. The system as in claim 1, in which:

the calculation means includes means for receiving an indication that an employee has been terminated, and means for generating a final paycheck and W2 for the terminated employee prior to the end of a normal pay period.

5. The system as in claim 1, in which:

the first site further includes;

means for calculating;

(i) a first disbursement amount to a first payee, based on the first employer payroll-related data;

(ii) a second disbursement amount to a second payee, based on the first employer payroll-related data;

(iii) a third disbursement amount to the first payee, based on the second employer payroll-related data; and

(iv) a fourth disbursement amount to the second payee, based on the second employer payroll-related data; and

means for disbursing a fifth disbursement amount to the first payee, the fifth disbursement amount including the first disbursement amount and the third disbursement amount, and for disbursing a sixth disbursement amount to the second payee, the sixth disbursement amount including the second disbursement amount and the fourth disbursement amount.

6. A method for interactive payroll-related calculations including:

receiving payroll-related data from a first employer, the data including an indication of hours worked for a first employer employee during a workday;

performing calculations using the first employer payroll-related data, the calculations resulting in processed first employer payroll-related data;

communicating the processed first employer payroll-related data to the first employer;

receiving a modification to the first employer payroll-related data from the first employer;

performing calculations using the modification, the calculations resulting in modified processed first employer payroll-related data;

communicating the modified processed first employer payroll-related data to the first employer;

continuing the process of receiving modifications, performing calculations and communicating modified data to the first employer until the receipt of an indication from the first employer that no additional modifications are required;

after receipt of the indication from the first employer, generating final first employer payroll-related data and using that data to generate paycheck information, disbursement information and benefits information;

receiving payroll-related data from a second employer, the data including an indication of hours worked for a second employer employee during a workday;

performing calculations using the second employer payroll-related data, the calculations resulting in processed second employer payroll-related data,

communicating the processed second employer payroll-related data to the second employer;

receiving a modification to the second employer payroll-related data from the second employer;

performing calculations using the modification, the calculations resulting in modified processed second employer payroll-related data;

communicating the modified processed second employer payroll-related data to the second employer;

continuing the process of receiving modifications, performing calculations and communicating modified data to the second employer until the receipt of an indication from the second employer that no additional modifications are required;

after receipt of the indication from the second employer, generating final second employer payroll-related data and using that data to generate paycheck information, disbursement information and benefits information;

whereby, a central site may communicate with the first employer to interactively generate payroll data for the first employer and may communicate with the second employer to interactively generate payroll data for the second employer, and the communication and generation for the first employer may at least partially overlap in time with the communication and generation for the second employer.

7. The method of claim 6, further including:

communicating the first employer paycheck information to the first employer for use in printing paychecks by the first employer; and

communicating the second employer paycheck information to the second employer for use in printing paychecks by the second employer.

8. The method of claim 6, in which:

the processed first employer payroll-related data includes data based on a first deduction amount related to deductions from a first employee'"'"'s paycheck,

the modification received from the first employer includes a change to the first deduction amount, the change having been entered by the first employee at a computer terminal after the first employee reviewed at least a portion of the processed first employer payroll-related data at the computer terminal, and

the modified processed first employer payroll-related data communicated to the first employer includes a modification based on the change to the first deduction amount.

9. The method of claim 6, in which:

the calculations performed using the first employer payroll-related data include;

generating benefits-related data, and

determining whether the benefits-related data is consistent with rules associated with a benefits plan.

10. The method of claim 9, in which:

the processed first employer payroll-related data communicated to the first employer includes an indication that the benefits-related data is not consistent with the benefits plan rules; and

the modification received from the first employer relates to the benefits-related data.

11. A system for interactive payroll-related calculation including:

storage means storing payroll-related information received from a first employer, including an indication of hours worked by a first employee during a workday and storing payroll-related information received from a second employer, including an indication of hours worked by a second employee during a workday;

calculation means for performing calculations on the first employer payroll-related information to generate processed first employer information, and for performing calculations on the second employer payroll-related information to generate processed second employer information;

communication means for receipt of the first employer payroll-related information from the first employer and the second employer payroll-related information from the second employer and for communication of the processed first employer information to the first employer and the processed second employer information to the second employer;

communication means for receiving a modification to the first employer information from the first employer, the modification having been received in response to communication of the processed first employer payroll-related information to the first employer,

calculation means for using the modification to generate modified processed first employer information; and

communication means for communicating the modified processed first employer information to the first employer and for receiving an indication that no additional modifications are desired by the first employer.

12. A system as in claim 11, in which:

the payroll-related information received from the first employer includes an indication that a supervisor of the first employee has checked the indication of hours worked by the first employee.

13. A system as in claim 11, further including:

communications means for the receipt of communications from the first employer specifying a format of data to be used in a report, and

the system further includes means for generating a report formatted in compliance with the specification received from the first employer and means for communicating the report to the first employer.

14. The system as in claim 11, further including:

means for receiving an indication that a bonus is owed to an employee, and means for generating a paycheck containing the bonus prior to the end of a normal pay period.

15. An interactive payroll and benefit system comprising:

(a) a data entry component which can accept;

(i) first payroll and benefit data entered for a first employer at a first location, the first payroll and benefit data including the number of hours worked by an employee of the first employer during a workday, and

(ii) second payroll and benefit data entered for a second employer at a second location, the second payroll and benefit data including the number of hours worked by an employee of the second employer during a workday;

(b) a communication component which can exchange information between a third location and each of the first and second locations, the information including the first payroll and benefit data and the second payroll and benefit data;

(c) a paycheck calculation component which can calculate for a pay period;

(i) elements of a paycheck for the employee of the first employer using the first payroll and benefit data received from the first location via the communication component, and

(ii) elements of a paycheck for the employee of the second employer using the second payroll and benefit data received from the second location via the communication component; and

(d) an employer tax liability calculation component which can calculate federal and state tax liability amounts for the first and second employers based at least in part upon the respective first and second payroll and benefit data received from the respective first and second locations via the communication component;

(e) wherein the interactive payroll and benefit system can enable the correction of an error following the receipt at the first location of the paycheck for the employee of the first employer by;

(i) enabling the first employer to modify the first payroll and benefit data via the data entry component,

(ii) transmitting the modified first payroll and benefit data to the third location via the communication component,

(iii) recalculating, via the paycheck calculation component, elements of the paycheck for the employee of the first employer using the modified first payroll and benefit data received from the first location, and

(iv) recalculating the federal and state tax liability amounts for the first employer via the employer tax liability calculation component.

16. A system including:

one or more communications ports;

one or more processing units; and

a digital memory or memories storing;

(a) payroll-related information provided by a first employer, including an indication of hours worked by an employee during a workday, and payroll-related information provided by a second employer, including an indication of hours worked by an employee during a workday;

(b) a computer program which receives as input the first employer payroll-related information and generates as output processed first employer information and which receives as input the second employer payroll-related information and generates as output processed second employer information;

(c) a computer program which causes the processed first employer information to be communicated to the first employer through a communications port;

(d) a computer program which receives modifications to the first employer information from the first employer, performs calculations using the modifications, generates modified processed first employer information and communicates the modified processed first employer information to the first employer through the communications port; and

(e) a computer program which receives an indication from the first employer that no further modifications are desired by the first employer, and, based on the indication, invokes a computer program which performs final processing based on the processed first employer information stored in the digital memory as of the time of receipt of the indication.

17. The system of claim 16, in which:

the digital memory or memories includes a computer program which takes as input an indication received through a communications port from the first employer, the indication signifying that an employee has been terminated, and, based on the indication, controls one or more processing units to generate a final paycheck for the terminated employee prior to the end of a normal pay period.

18. The system as in claim 16, in which:

the digital memory or memories includes a computer program which (i) takes as input the first employer payroll-related information and controls one or more of the processing units to calculate a first disbursement amount to a first payee;

(ii) takes as input the first employer payroll-related information and controls one or more of the processing units to calculate a second disbursement amount to a second payee;

(iii) takes as input the second employer payroll-related information and controls one or more of the processing units to calculate a third disbursement amount to the first payee;

(iv) takes as input the second employer payroll-related information and controls one or more of the processing units to calculate a fourth disbursement amount to the second payee;

(v) calculates a fifth disbursement amount to the first payee, the fifth disbursement amount including the first disbursement amount and the third disbursement amount, (vi) calculates a sixth disbursement amount to the second payee, the sixth disbursement amount including the second disbursement amount and the fourth disbursement amount; and

(vii) provides to one or more of the communications ports the fifth disbursement amount for communication to the first payee and the sixth disbursement amount for communication to the second payee.

19. The system as in claim 16, in which:

the final processing program includes programming which controls one or more of the processing units to calculate first paycheck amounts, and provides to one or more of the communications ports the first paycheck amounts for communication to the first employer for use in printing paychecks by the first employer.

20. The system as in claim 16, in which:

the processed first employer information communicated to the first employer includes electronic representations of paychecks for viewing by the first employer to determine whether modifications are required.

21. An interactive computerized payroll-related system including:

a first site including;

storage means for the storage of payroll-related information from a first employer, including an indication of hours worked during a workday by an employee and payroll-related information from a second employer, including an indication of hours worked during a workday by an employee;

calculation means for;

using the payroll-related information received from the first employer to calculate employee gross income and disbursement amounts;

using modified payroll-related information received from the first employer to recalculate employee gross income or disbursement amounts; and

using a termination indication received from the first employer to determine that no additional recalculations are required;

using the payroll-related information received from the second employer to calculate employee gross income and disbursement amounts;

using modified payroll-related information received from the second employer to recalculate employee gross income or disbursement amounts; and

using a termination indication received from the second employer to determine that no additional recalculations are required;

communication means for communication of information to and from remote parties, including;

means for sending;

calculated first employer employee gross income and disbursement amounts to the first employer, and

calculated second employer employee gross income and disbursement amounts to the second employer; and

means for receiving;

from the first employer;

payroll-related information for use in calculating employee gross income and disbursement amounts, modifications to the payroll-related information for use in recalculating employee gross income or disbursement amounts, and an indication that no additional recalculations are required;

from the second employer;

payroll-related information for use in calculating employee gross income and disbursement amounts, modifications to the payroll-related information for use in recalculating employee gross income or disbursement amounts, and an indication that no additional recalculations are required; and

disbursement means used to disburse disbursement amounts to parties other than the first or second employer,

a second site associated with the first employer, the second site including;

data entry means for entry of first employer payroll-related information and modifications to the first employer payroll-related information, the modifications being entered in response to receipt of employee gross income and disbursement amounts from the first site;

communication means for electronically communicating the first employer payroll-related information to the first site, for receiving from the first site calculated employee gross income and disbursement amounts, for communicating modifications to the first employer payroll-related information the first site, the modifications being in response to receipt of the calculated employee gross income and disbursement amounts, for receiving from the first site recalculated employee gross income and disbursement amounts, and for communicating to the first site an indication that no additional recalculations are required; and

a third site associated with the second employer, the third site including;

data entry means for entry of second employer payroll-related information and modifications to the second employer payroll-related information, the modifications being entered in response to receipt of employee gross income and disbursement amounts from the first site;

communication means for electronically communicating the second employer payroll-related information to the first site, for receiving from the first site calculated employee gross income and disbursement amounts, for communicating modifications to the second employer payroll-related information the first site, the modifications being in response to receipt of the calculated employee gross income and disbursement amounts, for receiving from the first site recalculated employee gross income and disbursement amounts, and for communicating to the first site an indication that no additional recalculations are required.

22. The system of claim 21, in which:

the first employer payroll-related information includes an indicator that the indication of hours worked by the employee has been checked by a supervisor of that employee.

23. The system of claim 21, in which:

the first site also includes means for generating paycheck information for communication to the second site for use in printing paychecks at the second site.

24. The system as in claim 21, in which:

the second site further includes means for the first employer to specify a format of data to be used in a report based on the first employer'"'"'s data and the second site communications means includes means for communicating the specified format to the first site; and

the first site includes means for generating and communicating reports, including means for receiving the format specification from the second site, means for formatting a report in compliance with the format specification, and means for communicating the formatted report to the second site.

25. The system of claim 21, in which:

the second site data entry means includes a timeclock for entering the indication of hours worked during a workday by an employee.

26. A method including:

receiving payroll information from a first employer;

using the first employer payroll information to calculate first employer disbursement amounts and employee gross income amounts;

communicating the calculated first employer disbursement amounts and employee gross income amounts to the first employer;

in response to communication of the calculated first employer disbursement amounts and employee gross income amounts, receiving from the first employer modifications to the payroll information;

using the modifications to recalculate first employer disbursement amounts or employee gross income amounts;

communicating the recalculated amounts to the first employer;

repeating the receipt of modifications, recalculation and communicating recalculated amounts until receiving an indication from the first employer that the most recently communicated amounts are acceptable;

following receipt of the indication, communicating final employee gross income and disbursement amounts to the first employer and making disbursements to a party other than the first employer based on the final disbursement amounts;

receiving payroll information from a second employer;

using the second employer payroll information to calculate second employer disbursement amounts and employee gross income amounts;

communicating the calculated second employer disbursement amounts and employee gross income amounts to the second employer;

in response to communication of the calculated second employer disbursement amounts and employee gross income amounts, receiving from the second employer modifications to the payroll information;

using the modifications to recalculate second employer disbursement amounts or employee gross income amounts;

communicating the recalculated amounts to the second employer;

repeating the receipt of modifications, recalculation and communicating modified amounts until receiving an indication from the second employer that the most recently communicated amounts are acceptable;

following receipt of the indication, communicating final employee gross income and disbursement amounts to the second employer and making disbursements to a party other than the second employer based on the final disbursement amounts.

27. The method of claim 26, further including:

receiving an indication from the first employer that an employee has been terminated; and

generating a final paycheck for the terminated employee prior to the end of a normal pay period.

28. The method of claim 26, in which:

the making of disbursements to a party based on the final first employer and second employer disbursement amounts includes the following;

calculating;

(i) a first disbursement amount to a first payee, based on the final first employer disbursement amounts;

(ii) a second disbursement amount to a second payee, based on the final first employer disbursement amounts;

(iii) a third disbursement amount to the first payee, based on the final second employer disbursement amounts; and

(iv) a fourth disbursement amount to the second payee, based on the final second employer disbursement amounts;

disbursing a fifth disbursement amount to the first payee, the fifth disbursement amount including the first disbursement amount and the third disbursement amount; and

disbursing a sixth disbursement amount to the second payee, the sixth disbursement amount including the second disbursement amount and the fourth disbursement amount.

29. The method of claim 26, further including:

calculating first paycheck amounts based on the final first employer employee gross income amounts and calculating second paycheck amounts based on the final second employer employee gross income amounts,

communicating the first paycheck amounts to the first employer for use in printing paychecks by the first employer; and

communicating the second paycheck amounts to the second employer for use in printing paychecks by the second employer.

30. The system as in claim 29, further including:

the communication of first paycheck amounts to the first employer includes communicating electronic representations of paychecks to the first employer for viewing by the first employer, the electronic representations being based on the first paycheck amounts; and

the communication of first paycheck amounts to the second employer includes communicating electronic representations of paychecks to the second employer for viewing by the second employer, the electronic representations being based on the second paycheck amounts.

31. A computerized payroll-related system including:

communication means for the receipt of payroll-related information from a first employer and a second employer, the received payroll-related information including indications of hours worked in a workday by employees;

storage means for the storage of the payroll-related information from the first employer and the second employer;

calculation means for using the payroll-related information received from the first employer to calculate first employer employee gross income and disbursement amounts and to use the payroll-related information received from the second employer to calculate second employer employee gross income and disbursement amounts;

communication means for sending the calculated first employer employee gross income and disbursement amounts to the first employer and for sending the calculated second employer employee gross income and disbursement amounts to the second employer;

communication means for receiving modifications to the first employer payroll-related information from the first employer and for receiving modifications to the second employer payroll-related information from the second employer;

calculation means for calculating changes to the first employer employee gross income or disbursement amounts based on modifications received from the first employer and for calculating changes to the second employer employee gross income or disbursement amounts based on modifications received from the second employer;

communication means for sending modified information to the first employer and the second employer, based on the calculated changes, and for receiving an indication from the first employer and the second employer that no additional changes are desired;

processing means, operating in response to receipt of the indication, for specifying final first employer employee gross income and disbursement data and for specifying final second employer employee gross income and disbursement data;

communication means for sending the final first employer employee gross income and disbursement data to the first employer and for sending the final second employer employee gross income and disbursement data to the second employer; and

disbursement means for disbursing the final disbursement amounts to one or more parties other than the first or second employer.

32. The system as in claim 31, including:

means for receiving communications from the first employer specifying a change in paycheck deduction amounts relating to the paycheck of a first employee, the change having been entered at a computer terminal by the first employee; and

means for receiving communications from the second employer specifying a change in paycheck deduction amounts relating to the paycheck of a second employee, the change having been entered at a computer terminal by the second employee.

33. The system as in claim 31, including:

means for receiving communications from the first employer specifying a change in a policy related to a first employee'"'"'s paystub, the change having been specified by the first employee; and

means for receiving communications from the second employer specifying a change in a policy related to a second employee'"'"'s paystub, the change having been specified by the second employee.

34. The system as in claim 31, further including:

means for (i) applying the rules of a first benefits plan to data related to a first employee, the first employee data being included within the first employer payroll-related information, and for determining whether the first employee data is consistent with the first benefits plan rules; and

(ii) applying the rules of a second benefits plan to data related to a second employee, the second employee data being included within the second employer payroll-related information, and for determining whether the second employee data is consistent with the second benefits plan rules.

35. The system as in claim 34, in which:

the communications means includes means for communicating messages to the first employer and the second employer specifying that employee data is not consistent with benefits plan rules.

36. A computerized payroll-related system including:

a communications port;

one or more processing units; and

one or more digital memories storing;

payroll-related information received through the communications port from a first employer, including an indication of hours worked during a workday by an employee;

payroll-related information received through the communications port from a second employer, including an indication of hours worked during a workday by an employee;

a computer program taking as input the first employer payroll-related information and the second employer payroll-related information and generating as output first employer employee gross income, first employer disbursement amounts;

second employer employee gross income and second employer disbursement amounts;

a computer program taking as input the first employer employee gross income and disbursement amounts and communicating the first employer employee gross income and disbursement amounts through the communications port to the first employer and taking as input the second employer employee gross income and disbursement amounts and communicating the second employer employee gross income and disbursement amounts through the communications port to the second employer;

a computer program taking as input modifications to the first employer payroll-related information, the modifications received from the first employer and generating as output modified first employer employee gross income and disbursement amounts and taking as input modifications to the second employer payroll-related information, the modifications received from the second employer, and generating as output modified second employer employee gross income and disbursement amounts;

a computer program sensitive to the receipt of a termination indication from the first employer and the second employer and, in response to receipt of the indication from the first employer, generating final first employer employee gross income and disbursement amounts and communicating those amounts to the first employer and, in response to receipt of the indication from the second employer, generating final second employer employee gross income and disbursement amounts and communicating those amounts to the second employer; and

a computer program taking as input the final first employer disbursement amounts and the final second employer disbursement amounts and communicating the disbursement amounts through the communications port to one or more parties other than the first or second employer.

37. The system as in claim 36, in which:

the first employer payroll-related information includes information entered by the first employer through two workflows communicated to the first employer from the computerized payroll-related system and the second employer payroll-related information includes information entered by the second employer through two workflows communicated to the second employer by the second payroll-related system.

38. The system as in claim 36, in which:

the digital memory or memories includes a computer program calculation module which takes as input the first employer payroll-related information and an indication that a bonus is owed to an employee, the indication having been received from the first employer through one of the communications ports; and

controls one or more of the processing units to generate a paycheck for the employee containing the bonus prior to the end of a normal pay period.

39. The system as in claim 36, in which:

the digital memory or memories includes a computer program calculation module which controls one or more of the processing units to format at least a portion of the information communicated to the first employer and the second employer in a format designed for viewing in a web browser.

40. The system as in claim 39, in which:

the information received from the first employer and the information received from the second employer includes information entered through a web browser interface.