Is payroll a hassle? Integrating payroll and employee timekeeping makes payroll a whole lot easier. It also makes life easier for your employees, managers, and HR team.
Today’s message is for organizations that have separate payroll and employee time and attendance systems.
What’s the problem with separate systems?
If your systems are separate, you are duplicating work. And if someone is doing manual data entry, mistakes are sneaking through.
This example from an online forum describes the issue:
“Every 2 weeks, I run payroll for 200 employees. 39 of them are salaried, and about 50 of the hourly employees work in 24-hour programs. I copy each employee’s regular and OT hours from the software into an Excel spreadsheet. Without breaks or interruptions, this process would take about six hours. I’ve never done it in less than eight. It’s exhaustive and exhausting.”
Why is manual entry a problem?
In this story, the payroll manager does manual data entry. The hours must match up with the correct employee. He might accidentally add a number, omit a digit, or transpose two digits.
It is unlikely that this process is always 100% accurate. A conservative estimate of the error rate would be 2%. For 200 employees, that means four employees could get an incorrect paycheck. If you pay your workforce two times per month, this amounts to 96 incorrect paychecks annually.
When there is a mistake, the problem moves through the system…
If you pay your employees by the hour, your payroll is based on the hours entered. Either you short that employee or pay too much.
If the employee hours are wrong, the paycheck amount is wrong. If the paycheck has an incorrect amount, the FICA withholdings are wrong. This could be due to inaccurate clock ins or corruption during the manual import.
Using paper time cards provides more opportunity for error. An employee can enter an incorrect shift start time. The worker could do a math error when totaling hours. The manager who approves it could misread the handwriting.
If the hours are off, accruals follow suit. Employees might not earn vacation time or sick days that they are rightfully due.
Moving on. If the deductions are wrong, the employer portion of the taxes is wrong.
You are probably thinking: “What is a better way?”
You need automated time tracking that syncs to payroll. You will increase accuracy and improve compliance. A biometric time clock synced to an advanced employee time and attendance system is the best way to go.
Here’s how it works:
It all starts with tracking staff member time. Tracking time accurately is the first step to smooth and accurate payroll processing. A biometric time clock is the best way to ensure that punch times are correct. It’s virtually impossible to fake a biological identifier to buddy clock for another employee.
“What if I have mobile and offsite workers?”
If you have mobile staff members, they will need another clock in method. TimeWorks Mobile with GPS the geographic location when an employee clocks in on the web portal. This is not as fraud-proof as a biometric clock. But it beats taking their word for it.
It’s not just time theft that can mess up payroll…
A biometric clock and advanced automated time tracking lets you enforce schedules and set overtime alerts. Some biometric clocks have tools that present associates with logical prompts so they don’t make common punch mistakes. Make sure your time and attendance system has a mobile app for offsite punches.
Berndt CPA can help you speed up payroll. For more information, call us at 608-274-7473.
Berndt CPA offers WorkforceHUB, the unified Human Resources portal that makes it easy to optimize the performance of your managers, employees, and business.
WorkforceHUB includes TimeWorksPlus, TimeSimplicity, and TimeWorks Mobile. We’ve just added onboarding, benefits enrollment, performance reviews, and employee engagement! WorkforceHUB is established for busy employers like you who need to streamline scheduling, automate time and attendance tracking, maintain regulatory compliance, and reduce labor costs.
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