As a business owner or manager, it’s imperative that you accurately track your employee’s work hours to ensure they get paid for their time spent on the clock—but this isn’t always the most straightforward process. According to the American Payroll Association, up to 8% of payroll errors are clerical errors that occur due to poor manual time tracking and payroll processes.
Because about 50% of your business budget goes towards processing payroll, any mistake can cost you a great deal of money—not to mention the increased potential for labor law violations.
Fortunately, with the right time clock and payroll software, you may never manually enter payroll data again!
Time theft runs rampant when businesses use manual team time tracking methods. This is because employees have no accountability but can instead track their time how they see fit. Not only does this hurt employees who are honest about their time, but this can quickly eat into your labor budget if not addressed.
With online time clock and payroll software, you can enable features that allow you to determine precisely how, when and where works can track time. This will enable you to ensure that employees are only tracking time for themselves, at the proper location, and only at the scheduled time.
Save Time & Money
The entire point of time tracking is to ensure that your employees are paid and on time for only the time spent on the clock. With manual time tracking, this is nearly impossible—there are just not enough resources or labor to manually oversee every single worker.
Using time clock and payroll software allows your workers to track time with GPS capabilities. You no longer have to worry about employees being at work while on the clock; you can just check the employee’s location in the software! This is a great time saver for managers on the go or with multiple locations.
In addition to saving time, the online timesheet software saves a great deal of money for your business by cutting down on administrative tasks.
Stay Labor Law Compliant
With the rise of the Fair Labor Standards Act (FLSA), it has become essential for employers to keep accurate records of employee time and wages. As a result, employee timesheet software has become a popular tool for tracking employee hours and is used by businesses of all sizes.
A time clock app can calculate overtime for each employee and accommodate the different rules for overtime in various states. And, because they’re customizable, you can enter break entries in accordance with local laws.
Labor law says employers must keep employee records for two years. If you have a high turnover rate or a lot of employees, this can be a challenging process. The good news is that time clock and payroll software stores this information in the cloud so it’s secure and can be easily accessed in the event of an audit.
In addition to logging time tracking details, you can also monitor breaks. Many states have strict break compliance, so the break details you capture must be as accurate as possible in the event of a dispute, employee lawsuit, or a possible labor law inquiry.
While you should never expect a perfect payroll, you can still make it as accurate as possible with the help of a time clock and payroll software. Not only can it increase your accuracy and efficiency, but it can also reduce the chances of labor law violations. So invest today—you’ll be glad you did!