Tonal Builds Stronger, Faster HR Workflows with Paylocity

Tonal is a home gym like no other. The fitness platform combines AI algorithms with wall-mounted training equipment that generates up to 200 lbs of resistance. Users can create their own workout or select from a library of 170 routines, covering cardio, yoga, strength training, and more.

Chrissy Angiola, Payroll Controller, explains: “Tonal is the smartest fitness technology on the market. The platform automatically adjusts the weight you lift, helping you make progress towards your goals. It’s like having a data-driven personal trainer in the comfort of your own home.”

Launched in 2015, Tonal grew rapidly during the global pandemic, fueled by the surge in demand for home workout equipment. As well as winning endorsements from the likes of Serena Williams and LeBron James, the company has built a membership base of more than 175,000 users.

In its early years, Tonal engaged professional employer organization (PEO) TriNet to serve as the employer of record (EoR), managing payroll, benefits, and compliance. But as its cutting-edge concept took off, the company decided to take full control over its HR operations. Making the change was a seriously heavy lift—luckily, Tonal found the ideal workout partner in Paylocity.

“Taking over payroll and HR for the entire company was a big learning experience for a lot of our folks,” adds Chrissy. “Paylocity really helped us get to grips with all the nuances that you simply don’t think about when they are somebody else’s responsibility.”

The Challenge

Feeling the Burn

Taking control of HR administration was a step into the unknown for Tonal. The key to success was finding a platform to support multinational payroll, in-depth reporting, and integrated HR operations.

Distributed Workforce Creates Payroll Complications
Parting company with TriNet meant that Tonal suddenly became responsible for a long list of HR admin tasks. Perhaps the most challenging was running an unusually complex payroll, as Chrissy explains: “We are a remote-first company, with employees often moving between locations across the United States. And around 25 percent of our workforce is based in Toronto, Canada. To pay everybody, we have to ensure we are registered correctly in every one of those locations and comply with many local tax rules. Otherwise, we can run into pages of payroll errors.”

Slow Reporting Leaves HR Waiting for Insights
Working with TriNet hadn’t been plain sailing for Tonal. The customer support was rarely responsive, and the PEO failed to apply for valuable research and development (R&D) tax relief that the company was entitled to receive. For Chrissy, the limited reporting was a particular irritation: “I’m very big on analytics and exploring trends and patterns in our data, but TriNet only offered five standard reports. Otherwise, we had to ask for a customized report, which would take up to six weeks to arrive, even when they were only adding a few data points to a standard report.”

Point Solutions Increase Costs and Complexity
During the transition from TriNet, Tonal adopted various standalone HR systems, including Deputy for managing employee timesheets. Aside from the inevitable cost and complexity of running multiple poorly integrated solutions, the Deputy system had other functional limitations. For example, the look and feel of the mobile app varied significantly with the desktop version, creating confusion for users. And managers had limited control over where employees were clocking in. “We wanted to work smarter,” adds Chrissy. “Part of that was adopting a more integrated approach.”

The Solution

Putting in the Hard Yards

When Chrissy arrived as Payroll Controller, Tonal had deployed Paylocity but only scratched the surface of what it could deliver. She was determined to harness the platform’s full potential.

Chrissy’s first move was to increase her knowledge of Paylocity, then roll out new modules. She explains: “I used the PEAK Knowledge Base and set up a weekly call with our customer service rep. It was great having someone that could answer all my questions—I picked things up really quickly!”

Simplifying Compliance with Complex Tax Regulations
Today, Tonal uses Paylocity’s Payroll and Global Payroll modules to pay American and Canadian employees, manage deductions, and ensure compliance with state and federal tax rules. “Paylocity helped us get all the intricate details right, such as checking we were correctly registered in every state where our employees live,” adds Chrissy. “Being able to preview tax deductions before we submit payroll is an awesome feature that helps prevent any frustrating errors.”

Replacing Standalone Systems with an Integrated Platform
With Paylocity’s Time & Attendance module, Tonal replaced the Deputy timesheet system and moved to a fully integrated HR ecosystem. Employees in the company’s retail locations can now punch in on a geofenced timeclock on an iPad or via the Paylocity Mobile App. “The feedback for the Employee Self-Service system and Mobile App has been very positive,” comments Chrissy. “It gives everyone a central place to find paychecks and tax documents, and to make time-off requests.”

Improving Onboarding with Streamlined Processes
Tonal has also transformed many core HR processes. For example, Chrissy can access customized reports in the Insights & Recommendations module, while Tonal created 12 new-hire packages tailored to different roles and locations using the Onboarding module. And Paylocity’s Integrations are helping the company manage employee benefits, including 401(k) plans from Fidelity and wellness coaching from Modern Health. “Paylocity created a unique ‘backdoor key’ to send data to Modern Health. They went the extra mile to help us,” notes Chrissy.

The Results

Seeing the Gains

Working with Paylocity, Tonal has successfully taken control of its HR destiny, with robust payroll processes, highly efficient and productive workflows, and deeper insight into HR operations.

Building a Faster, Error-Free Payroll Process
By embracing the full automation capabilities of Paylocity, Tonal has created a reliable, quick payroll process to support its international workforce. Chrissy has built payroll batches for different employee groups, such as retail, salaried, and contract workers, which help improve transparency, and reduce the risk of errors and costly off-cycle payrolls to rectify issues. “We have reduced payroll from a three-day process when I started to just four hours—that's 94 percent faster,” says Chrissy.

Cutting Workloads and Saving Time for the HR Team
Beyond payroll, teams across Tonal have seen the positive impact of Paylocity. Geofenced timeclocks mean managers know exactly where employees are when clocking in, while the consistent look and feel across the Paylocity Mobile App and desktop platform offers a much more consistent user experience than the old Deputy system. Paylocity’s self-service option is also saving time for Chrissy: “We used to get an insane number of requests for W-2 forms in February and March. People now know where to find their documents, which relieves that pressure.”

Delivering Insights to Business Leaders Faster than Ever
Where TriNet took weeks to provide reports, Tonal can now uncover insights with just a few clicks in Paylocity. “We love the dynamic reporting. It’s so quick and simple to customize data fields, explore trends, and provide insights to business leaders,” explains Chrissy. For example, the company recently used data from Paylocity to optimize its payroll schedule, consolidating four monthly pay processes into two regular payrolls that make life easier for finance teams.

As an extra bonus, Paylocity helped Tonal to claim back R&D tax relief that TriNet failed to apply for, as Chrissy concludes: “When we talked to Paylocity, we found that we had left a huge amount on the table. So far, we have been able to get back $250k in tax credits!”