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Paylocity Mileage Reimbursement: All You Need To Know

Emily Maina
Last update on:
April 18, 2024 1:45 AM
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Paylocity is a leading HR and payroll software that ensures accuracy and increases efficiency for businesses compensating employees for using personal vehicles in their roles. Paying back employees for mileage has long been a thorn in the side of businesses, especially those relying on outdated, manual processes. 

Automation simplifies the process, which is why your company should consider Paylocity mileage reimbursement. This article explores the integration of Paylocity and Timeero, one of the best mileage tracking apps. 

We’ll also cover the challenges of manual reimbursement processes and highlight the benefits of this powerful combination. 

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Does Paylocity Track Your Location?

Paylocity itself does not track your location. However, its users have the option to integrate with Timeero, a separate time-tracking solution that offers GPS and mileage-tracking features. 

By doing this, employers can use Timeero's capabilities to accurately track their team members' locations during work-related activities. This approach allows businesses that use Paylocity to benefit from the advanced tracking features provided by Timeero. It allows for precise data capture without compromising individual privacy, as the app only tracks location when the employee is clocked in. 

Paylocity remains focused on payroll and human resource functionalities. Integrating with Timeero adds a layer of GPS location tracking for organizations looking for workforce management software solutions.

Reimbursing Mileage Manually vs Paylocity Mileage Reimbursement

Traditional mileage reimbursement procedures can be exhausting, which has long been a source of frustration for companies. The outdated nature of manual reimbursement methods introduces many challenges, putting a strain on payroll and HR department efficiency as well as burdening employees. It's critical to tackle these issues head-on and implement more seamless solutions.

The Accuracy of Tracking

For companies that use manual processes, tracking mileage accurately is a constant challenge. Workers might find it difficult to keep accurate records of the trips they take for work, sometimes even forgetting to record their miles. 

This could result in mistakes and inconsistencies when filing claims for reimbursement. These errors increase employee frustration, and the company runs the risk of encountering financial discrepancies.

Compliance Headaches

Understanding tax rules regarding mileage compensation presents yet another challenge for businesses. It is difficult to guarantee compliance with constantly changing tax rules, especially given the fact that noncompliance can have financial and legal repercussions. 

In this case, it becomes increasingly obvious that a system which automates compliance checks and updates in real time is important. Using an automated solution makes sure you stay compliant when it comes to expense reimbursement.

Impact on Employee Productivity

Outdated reimbursement practices have an impact on more than just simple administrative problems. When workers encounter mistakes or delays in the reimbursement process, their level of job satisfaction is frequently lowered. 

Not to mention, an employee’s time and energy spent manually entering and filing mileage claims might take time away from their main job, negatively affecting productivity.

Given these issues, organizations are looking for new ways to enhance their mileage reimbursement procedures. One proposed solution is using an automated mileage tracking app to record mileage and linking it with a payroll system for reimbursement of business-related expenses.

The Paylocity and Timeero Integration

Integrating Paylocity with Timeero is a straightforward process that makes reimbursement more efficient. Employee mileage is automatically transferred between the two platforms. 

By removing the need for repeated data entry, this integration reduces the chance of mistakes and speeds up the approval process for reimbursements. When mileage data is easily integrated into the larger payroll and expense management tool, employees enjoy a simpler and more transparent work experience.

Follow these steps:

  1. Log into your Timeero account and click on the Integrations section. Select Paylocity.

timeero integrations

  1. Click Configuration, then Enable.

enabling paylocity integration

  1. Enter the Paylocity company ID in the designated section and click Connect. Paylocity will automatically connect after this.

connecting to paylocity integration

  1. The next step is to map your earning codes under Settings. Select your preferences and click Save.

timeero paylocity integration settings

  1. You’ll also need to map your users. Click Configure Mappings, and you’ll see the list of employees that have been imported from Paylocity to Timeero. 

  1. To map a specific user, click Map Employee.

How to Export Timeero Data To Paylocity

Once you have completed the integration process, the next step is to export hours to your Paylocity account. To do this, follow these steps:

  1. Log into your Paylocity account. Click on Payroll, then Pay Entry.

paylocity payroll

  1. Choose the dates for the data period you want to export.

creating batch with paylocity

  1. To generate a report, go into the Timeero reports dashboard and click on Report By Totals Only.

timeero reporting totals only

  1. Select the same date range you chose in Paylocity, then click on Generate Report.

timeero generating reports

  1. Once the report has been generated, click Export at the top right, then Export to Paylocity.

exporting data to paylocity

  1. Enter your earlier chosen dates in the Check Date box in the new tab and click Proceed. Your report will be exported automatically. 

  1. You can check the status of your exported report by going back to the Integrations dashboard in Timeero and selecting Paylocity. Click on Export Status.

timeero export status

Select your batch, and you’ll see the exported user data. This data will also be available on your Paylocity expense reports. 

paylocity data report

Here are a few things to note:

The following information is included in the export:

  • Regular hours
  • Overtime hours
  • Double overtime hours
  • Mileage deductions/ costs

You’ll need this information to make the export:

  • Period Begin date (start date)
  • Period End date (end-date)
  • Check Date

This data is found in Paylocity's Pay Entry -> Create Batch section.

  • The export only sends hours and amounts for deductions (mileage).
  • A quick summary of the export status can be seen in the Timeero integration section, and the information is reflected in Paylocity's Pay entry portal (Batches) once the export is complete.

Why Track Mileage With Timeero?

As we’ve covered above, integrating Timeero and Paylocity is a straightforward process that makes reimbursing mileage a walk in the park. But why use Timeero as your mileage-tracking solution instead of manual methods like spreadsheets?

GPS Tracking For Accuracy

The GPS tracking capability of Timeero is really a game-changer when it comes to mileage tracking. Timeero helps companies get accurate information about employee movements using GPS technology. 

This is crucial for companies with mobile or field-based teams. It guarantees precise tracking while also offering insightful information about the location of workers when they are clocked in. 

timeero mileage tracking iphone
Automatic mileage tracking on Timeero

The app will start recording the mileage when the vehicle reaches the designated minimum speed threshold. To increase the accuracy of your mileage log, you can set clock-in and clock-out reminders through notifications. The manager can use Timeero's Quick Time Clock to automatically clock out field workers who forget to do so. 

Mobile Accessibility For On-the-Go Tracking

In an era where work is increasingly mobile, Timeero understands the value of accessibility. According to Statista, mobile device users are projected to hit 7.94 billion by 2025. 

This shows just how popular and essential smartphones are becoming. With Timeero, employees can clock in and out, log breaks, and track assignments straight from their phone. 

The app's user-friendly design makes learning easy for all of your workers, even those who are not tech-savvy. It is simple to track mileage with Timeero. Easily begin your workday by choosing the designated job and task, then tapping "clock in".

timeero gps tracking
Employees can easily clock in on the Timeero app

Segmented Tracking For Improved Accountability

The segmented tracking feature in Timeero allows you to see a general overview of your employees' workdays. When an employee moves from one work location to another, it automatically logs the distance traveled and captures GPS information for each location. 

This means that each site visit's mileage is precisely recorded without the need for human intervention. You will receive important information like the duration of the drive and arrival and departure times for every location. ‍

Once segmented tracking is enabled on your account, you can view your employee's segments from the Time and Mileage tab on Timeero. To display the job rather than the GPS location, you can register jobs on Timeero that coincide with particular locations for segmented tracking.

timeero segmented tracking feature
Timeero’s segmented tracking feature

Automatic Calculations To Prevent Errors

By allowing you to set a per-mile rate that provides you with the total, Timeero's account settings spare you the stress of performing additional mileage calculations. 

You can choose to use IRS mileage rates to determine the amount you should reimburse. The standard mileage rate for 2024 is 67 cents per mile. By entering this amount in the provided section, the app will automatically calculate the total for you. This ensures that workers receive fair compensation and helps to streamline payroll processing. 

timeero setting mileage costs
Setting cost per mile on Timeero

Suggested Route To Reduce Costs

The suggested route feature of Timeero reduces operating costs for your business, where workers are able to view the shortest recommended route to their destination. 

You will save a lot on fuel costs because your employees will take the shortest available routes. Shorter distances traveled by the cars also result in less wear and tear and possible maintenance costs. 

timeero shortest distance
Reduce business expenses by following the suggested route

Route Replay For Transparency

It is possible for managers to retrace the same routes their employees took by using the Route Replay function of Timeero.  This feature  allows managers to replay an employee’s daily journey. With Route Replay, company owners will have a better understanding of the business travel patterns of their employees. It is also a great way to verify their mileage by showing the exact path followed.

timeero route replay
The Timeero route replay feature

Reports For Better Compliance

The integration of Timeero and Paylocity facilitates adherence to both corporate policies and labor laws. Precise time and mileage tracking guarantees that companies follow overtime, break, and reimbursement policies, reducing the possibility of legal problems. Timeero also provides mileage reports to use for IRS tax purposes. 

timeero mileage reporting
Mileage reports on Timeero

Employees should not include commuting miles in their daily mileage log in order to comply with IRS regulations, as they are not tax deductible. Timeero's commuter mileage feature makes it easy to keep track of these miles driven. To help you better understand this issue, we have a guide on commuting mileage reimbursement.

Does The Law Require Mileage Reimbursement?

No, federal law does not mandate mileage reimbursement. However, employers are required by federal law to pay their workers up to a certain amount. For instance, you might be subject to legal action and fines if your failure to pay workers results in their minimum wage dropping below the federal minimum wage.

There are state laws that specifically address mileage reimbursement. According to state law in California, Illinois, and Massachusetts, employers are required to reimburse staff members for transportation expenses and other actual costs incurred while using a personal vehicle for business purposes.  

To enhance employee engagement and retention, mileage reimbursement should be considered an essential task for your company. If you are unsure where to start, we recommend reading our article on what mileage rembursement covers

You can also have a look at our complete guide on employee mileage reimbursement to better understand the matter. 

Simplify Reimbursement By Integrating Timeero With Paylocity

The Paylocity and Timeero combination is a particularly efficient option when it comes to mileage reimbursement. Accurate GPS tracking, paired with the removal of manual procedures, enhances productivity, satisfaction among employees, and overall compliance. 

Timeero will accurately track mileage, ensuring error-free data on employee miles. You can then export the mileage expenditure data to Paylocity with only a few clicks to finish the reimbursement procedure. Get started today to experience these benefits.

If you use Gusto as your payroll system, check out our article on Gusto mileage reimbursement. Use ADP instead? We also have an ADP mileage reimbursement guide. 

Paylocity Mileage Reimbursement: Frequently Asked Questions

How Does Paylocity Track And Manage Mileage For Reimbursement Purposes?

Paylocity does not have a built-in mileage tracker. However, this expense management software smoothly connects with Timeero, a GPS-enabled mileage tracking app. Employees use Timeero's smartphone app to log business-related miles. The interface allows mileage data transfer into Paylocity, simplifying reimbursement and facilitating employee expenditure management.

How Do I Set Up Mileage Reimbursement Rates In Paylocity?

Although Paylocity does not have a specific feature to set up rates to reimburse mileage, you can access this functionality on Timeero. Simply access the platform's settings to establish the per-mile reimbursement rate. You can then transfer this mileage expense data and use Paylocity for payroll. 

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AUTHOR
Emily Maina

Emily Maina is a tech-savvy writer with a passion for creating content. With years of experience in the industry, she is well-versed in the latest trends and developments in the tech industry. When she’s not working, Emily enjoys exploring the great outdoors or watching her favorite shows.

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