Building VMSFlex Pay: Automating Multi-State Payroll for Contingent Workforce

By Amy Bray • October 17, 2025 • 8 min read

TL;DR: Built a web app that automates payroll processing across 32 VMS platforms and 50 states, reducing processing time by 94% and eliminating manual calculation errors.

The Business Problem

Managing contingent workforce payroll across multiple Vendor Management Systems (VMS) was a nightmare. Each week, our team faced:

32 different VMS platforms, each with unique CSV/PDF export formats
50 different state overtime rules requiring manual calculation
Hours of manual data entry and reformatting for EOR partners
High error risk from copy-paste mistakes and calculation errors

The process took 5-7 hours per pay period per payroll specialist, with frequent errors requiring corrections and amended paychecks.

94%

Time Reduction

$14K+

Annual Value

The Solution

VMSFlex Pay is a browser-based tool that:

Intelligently parses CSV/PDF files from any VMS format
Applies 50-state overtime rules automatically
Validates compliance before processing
Exports standardized data for EOR partners
Tracks OBBBA taxes for year-end reporting

Technical Deep Dive

1. Smart File Parsing

The biggest challenge was handling 32 different VMS formats. Some provided daily breakdowns, others weekly totals. Date formats varied. Column names were inconsistent.

Solution: Built a visual column mapper that:

Auto-detects common formats (Beeline, Fieldglass, IQN, etc.)
Lets users drag-and-drop columns to map fields
Saves templates per VMS for reuse
Handles both CSV and PDF uploads

2. Name Matching Algorithm

Employee names varied between systems: "John Smith" vs "Smith, John" vs "Smith,John" vs "SMITH, JOHN".

Solution: Implemented 4-tier matching:

1. Exact match (case-insensitive)
2. Normalized match (trim, lowercase, remove punctuation)
3. Token-based match (first + last names in any order)
4. Fuzzy match (Levenshtein distance < 2)

3. 50-State Overtime Rules

Every state has different overtime thresholds. California has daily OT rules. Alaska has weekly OT at 8 hours/day AND 40 hours/week.

Solution: Built a rule engine that:

Applies daily thresholds (CA: 8h/day, 12h/day for double-time)
Applies weekly thresholds (40h/week federal minimum)
Calculates 7th consecutive day rules (CA)
Reconciles FLSA vs state rules (highest rate wins)
Validates California daily breakdown requirements

4. OBBBA Tax Tracking

"OBBBA" regulation requires tracking state-mandated overtime separately from federal for tax reporting.

Solution: System tracks:

Regular hours (straight time)
FLSA overtime (federal 1.5x after 40h/week)
State overtime (e.g., CA daily OT)
Generates year-end W-2 Box 14 reports

5. Exception Detection

The system automatically flags potential issues:

Excessive hours: Any day > 12 hours
Consecutive work days: 7+ days in a row
High OT ratio: OT > 40% of total hours
Missing daily breakdowns: California employees without day-by-day data

Key Features

File Import

Drag & drop CSV/PDF
Auto-detect formats
Visual column mapper
Template library

Smart Processing

50-state OT rules
PDF text extraction
Name matching (4 strategies)

Compliance

50-state OT rules
CA daily validation
OBBBA tax tracking

Quality Control

Exception flagging
Daily breakdowns
Audit trail

Reporting

Summary export (EOR)
Detailed export (audit)
OBBBA report (tax)

Try It Yourself

Launch VMSFlex Pay Demo →

What's Included

✅ Demo employees (CA, TX, CO, NY, NV)
✅ Sample data generator
✅ All 50-state rules
✅ PDF upload capability
✅ OBBBA tax tracking
✅ Exception detection

Contact

Questions about VMSFlex Pay or payroll automation?

📧 Email: amybray0315@gmail.com.com
💼 LinkedIn: linkedin.com/in/amybrayphr

Note: Implementation shows how the system handles new compliance requirements.