How does Paycor work?

Paycor works as a comprehensive human capital management (HCM) platform designed to streamline and automate various human resources (HR), payroll, and workforce management processes for businesses. It provides a unified system that helps organizations manage their entire employee lifecycle, from recruitment and onboarding to payroll, benefits, and talent development.

Core Functionality: Streamlining Human Capital Management

At its heart, Paycor simplifies complex HR tasks, allowing businesses to focus on growth and employee engagement rather than administrative burdens. It consolidates various functions into an intuitive system, providing a single source of truth for all employee-related data. This integration across modules helps ensure consistency, reduces errors, and improves overall efficiency.

Key Modules and How They Operate

Paycor offers a suite of integrated solutions, each designed to address specific aspects of human capital management:

Payroll Processing

Paycor’s payroll software is central to its offering, designed for reliability and tax compliance. It automates the intricate process of paying employees, including:

• Wage Calculation: Accurately calculates gross wages, factoring in regular hours, overtime, bonuses, and commissions.
• Tax Withholding: Automatically calculates and withholds federal, state, and local taxes, ensuring compliance with current tax laws.
• Direct Deposit & Payment: Facilitates secure direct deposits, pay cards, or check printing.
• Tax Filing: Handles all necessary payroll tax filings, reducing the administrative burden and risk of penalties for businesses.
• Reporting: Generates detailed payroll reports for financial analysis, auditing, and record-keeping.

Workforce Management and Time Tracking

For businesses with hourly employees, Paycor often integrates its payroll solution with a dedicated workforce management system like Paycor Time. This module is crucial for accurate wage calculation and compliance:

• Hour Collection: Employees can clock in and out using various methods, including physical time clocks, iPad applications, or mobile apps, providing flexibility for different work environments.
• Schedule Management: Allows managers to create, distribute, and manage employee schedules efficiently, helping to control labor costs.
• Absence Management: Tracks paid time off (PTO), sick leave, and other absences.
• Integration: The system is designed to integrate seamlessly with other timekeeping systems, including point-of-sale (POS) systems, ensuring all hours are captured accurately and flow directly into payroll.

HR Management

This module helps businesses manage their most valuable asset—their people—efficiently:

• Employee Data Management: Centralizes all employee information, including personal details, job history, performance reviews, and compensation.
• Onboarding: Streamlines the new hire process, from paperwork to training assignments, ensuring a smooth transition for new employees.
• Policy Management: Stores and disseminates company policies, ensuring employees are aware of and comply with internal guidelines.
• HR Reporting: Provides insights into HR metrics such as turnover rates, employee demographics, and compliance data.

Benefits Administration

Paycor simplifies the often-complex process of managing employee benefits:

• Enrollment: Facilitates online benefits enrollment, allowing employees to select and manage their benefit plans easily.
• Eligibility Tracking: Automatically tracks employee eligibility for various benefits based on company policies.
• Deduction Management: Integrates benefits deductions directly with payroll, ensuring accurate withholding and remittance to providers.
• Compliance: Helps businesses stay compliant with benefits regulations such as ACA (Affordable Care Act).

Talent Management

Paycor also supports the entire talent lifecycle, from attracting candidates to developing existing employees:

• Recruiting & Applicant Tracking: Manages the hiring process from job posting to offer letter, helping businesses find and onboard the right talent.
• Performance Management: Facilitates goal setting, performance reviews, and feedback processes to support employee development and engagement.
• Learning Management: Provides tools for delivering and tracking employee training and development initiatives.

The Paycor Process: From Data to Delivery

Here’s a simplified breakdown of how information flows through the Paycor system:

1. Data Input: Employers or employees input relevant data, such as new hire information, hours worked (via time clocks or apps), benefits selections, and changes in compensation.
2. Processing & Compliance: Paycor's software processes this data, performing calculations for wages, taxes, and deductions. It applies built-in compliance rules and alerts users to potential issues, helping to ensure accuracy and adherence to regulations.
3. Output & Reporting: The system generates paychecks (or direct deposit files), comprehensive payroll and HR reports, and prepares necessary tax filings for submission to government agencies.
4. Employee Self-Service: Employees can access their pay stubs, W-2 forms, benefits information, and update personal details through a secure online portal or mobile app, reducing inquiries to HR.

Why Choose Paycor? Key Benefits

Businesses leverage Paycor for several key advantages:

• Increased Efficiency: Automates time-consuming manual tasks in HR and payroll.
• Enhanced Compliance: Helps businesses navigate complex tax laws and labor regulations.
• Better Insights: Provides valuable data and analytics for informed decision-making.
• Improved Employee Experience: Offers self-service options and streamlined processes for employees.
• Scalability: Solutions are designed to grow with businesses, from small startups to large enterprises.

By integrating these critical HR functions into one platform, Paycor allows businesses to manage their workforce effectively, ensure compliance, and empower their employees.

Paycor Feature Overview