State of Alabama to spend $5.2M on new payroll system

The Alabama Department of Finance plans to spend about $5.2 million on an attendance and timekeeping system for all state departments and employees.

Assistant Finance Director Rex McDowell said the contract with Massachusetts-based KRONOS also would allow for an online portal where state employees could track their hours, print their W-2s, check annual leave balances and request leave.

“It will let the state enjoy a lot of efficiencies that the private sector has enjoyed for a decade,” McDowell said.

It also will save the state more than three million pieces of paper per year, including pay stubs.

Several agencies still use timeclocks where employees manually punch in and out of work every day, McDowell said.

The computerized system could lead to the elimination of jobs for those who handle timecard and payroll issues. McDowell said it would be up to individual departments to decide if they want to eliminate or repurpose those positions.

McDowell said the $5.2 million cost includes software and training. He said it will take about 30 months to roll out the program agency by agency.

“The majority of the cost is one-time consulting and setup,” he said.

Lawmakers on the Legislative Contract Review Committee will get a chance to hear more about the contract at a meeting Thursday.

The committee can ask questions and delay proposed state contracts for further review, but ultimately cannot block them.

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