Employee Payroll Payment Splitting System
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Solution Overview
Problem
Current payroll processing systems are inflexible, often requiring employers to pay employees less frequently due to cost constraints, which can lead to long payroll cycles and increased processing burdens, while employees may prefer more frequent payments, necessitating complex data processing and additional resources to comply with HR and taxation rules.
Innovation Solution
A payment processing system that allows employees to customize their payment periods by determining desired payment splits, with automatic notification and editing of payment profiles, and generates bank credit transfer files for wage payments, minimizing human input and technical impact on employer systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If the employer pays employees less frequently (e.g., monthly) to reduce costs, then the processing cost and human resource time are reduced, but the payroll cycle becomes longer and employee satisfaction decreases
Solution Approach 1:
The patent segments the total payroll amount into multiple partial payments that are distributed across different time periods. Instead of processing one large payroll batch monthly, the system divides it into smaller payment units that can be processed and delivered at different frequencies (weekly, bi-weekly, monthly) based on employee preferences, thus reducing the perceived payroll cycle duration while maintaining processing efficiency.
Solution Approach 2:
The patent implements dynamic payment frequency adjustment where each employee can choose their preferred payment frequency within the constraints of the payroll cycle. The system dynamically adapts to individual employee needs rather than enforcing a uniform payment schedule, allowing employees to receive payments more frequently if desired while the employer maintains overall cost control.
2Adaptability or versatility
If the employer allows employees to choose more frequent payment periods, then employee satisfaction and flexibility improve, but the data processing complexity and resource requirements increase
Solution Approach 1:
The patent creates a universal payment processing framework that handles multiple payment frequencies (weekly, bi-weekly, monthly) and multiple payment scenarios within a single system. The payroll processing system is designed to be multi-functional, accommodating different employee preferences without requiring separate processing pipelines for each frequency, thus managing complexity while providing versatility.
Solution Approach 2:
The patent manages complexity by changing parameters rather than structure. Instead of creating complex processing logic for each payment frequency, the system uses parameter-based configuration where payment frequency, split ratios, and timing are adjustable parameters. This allows the same core processing engine to handle diverse payment scenarios by simply adjusting parameters, reducing device complexity while maintaining adaptability.
3Adaptability or versatility
If the employer engages payroll hosted services more frequently to accommodate employee preferences, then payment flexibility improves, but the fees to service providers and human resource personnel time increase
Solution Approach 1:
The patent segments the payroll processing into employer-side aggregation and employee-side distribution. The employer engages the payroll hosted service once per payroll cycle to obtain total payroll data, then the system segments this data into multiple payment batches for distribution to employees at different frequencies. This eliminates the need for frequent employer-service interactions while providing employees with flexible payment options, thus improving cost efficiency while maintaining adaptability.
Solution Approach 2:
The patent performs preliminary aggregation of payroll data at the employer level before distribution. The employer obtains complete payroll information from the hosted service in advance, then the system pre-calculates and prepares multiple payment schedules based on employee preferences. This preliminary action allows all subsequent payments to be processed from the already-obtained data, avoiding repeated service engagements and reducing costs.
4Adaptability or versatility
If the system provides customized payment splits for each employee, then individual flexibility improves, but the messaging and file transfer traffic and data processing resources increase
Solution Approach 1:
The patent uses parameter-based configuration for employee payment preferences rather than storing complex customized payment plans for each employee. Each employee's preferences are captured as simple parameters (payment frequency, split ratio, timing preferences) that can be stored efficiently and reused across multiple payment cycles. This reduces the quantity of data that needs to be processed and transmitted while maintaining per-employee customization capability.
Solution Approach 2:
The patent performs preliminary configuration of employee payment preferences in advance, storing these as reusable parameters. Once an employee's payment preferences are set, the system reuses these parameters for subsequent payment processing without requiring repeated configuration or data transmission. This preliminary action significantly reduces messaging and file transfer traffic while maintaining individual customization.
Data Source
AI summary
Processing payroll payments for employees is performed by a payment processing system and employee devices, so that the employee can with access security set short pay periods and have wage payments made according to their profile. The payment processing system has an interfacing server, a storage server, and a processing server, using internal signalling and file transfer. They receive from an employer computer net pay data for employees for a long period, and communicating with the employee devices to determine a desired payment split over the long period, and automatically notify an employee device of opening of a window for user editing of a payment split profile, and subsequently are instructed by the employee device as to edit the profile.