Management Tips for Accurate, Efficient Payroll

Payroll management involves more than monitoring the time clock. Nowadays, the payroll function is as complicated as ever, especially with federal government oversight of corporate accounting practices, several different types of automatic deductions, and international staffing. In such an environment, payroll calculations are usually automated, though some smaller companies still use a manual system to compute paychecks and hours worked. However, even in the case of entities with fewer than 50 workers, automated time clock systems are very common.

The best way to make certain that there are no major errors in payroll checks is to use a reliable and consistent method of calculating all check amounts. Whether your company uses electronic time clock systems or online time loggers, be attentive to keeping accurate records of hours worked for each employee.

Some modern time clocks do a variety of calculations that were unheard of just two or three decades ago. And some old systems still work, despite their age. A punch card system works well for organizations that have fewer than 50 workers.

For large firms, time loggers work well. In these computer-based systems, workers check in via their computer terminals. In some cases, computer-timing programs use a magnetic terminal for swipe cards. Large companies are especially susceptible to time fraud due to the impersonal nature of the systems and vulnerability to hacking. Some of the higher-end programs contain subtle but effective safeguards against such activity.

Whether large or small, every business should keep a separate bank account for payroll funds. In fact, a patchwork of federal and state laws require certain types of entities to maintain separate accounts for payroll purposes. Aside from the purposes of the law, it is a wise practice to label a bank account specifically for payroll. When tax time comes, companies who have accurate records and segregated accounts will be in a better position to prepare accurate tax returns quickly and simply. When it comes down to it, a time clock is the basis for vital payroll calculations, pure and simple.

Implement a Time Clock System Effectively

Implementing a time clock system for your company involves a bit of thought. Depending how many employees you have, how large your facility is, and what level of security you need, you will want to invest in a time clock system that is just right. There are currently so many different systems on the market you might be confused by the selection. Keep in mind that a simple time clock can meet most of your needs if you use it correctly. Larger, more elaborate systems typically involve computer software that monitors hours worked, employees names, and dozens of other parameters.

Be sure to put the time clock in a place where every worker will see it. This is crucial. If you put the device in an out-of-the-way location, you risk losing valuable data, as some workers will not see the clock and will begin work without logging in.

It is wise to put a large, company bulletin board near the time clock in order to make it a gathering place for your personnel. When the clock is in an open location, which gets a lot of traffic, there is less chance for fraudulent behavior.

Perhaps the most vital aspect of time clock management is making sure that every employee knows how to operate the device. Most companies hold training sessions when a new clock system is purchased. After that, try to make time clock training a standard part of each new hire’s orientation.

Some of the newer, biometric time systems are quite expensive, but are perfect for organizations that need high security. A biometric time clock uses fingerprints, iris scans, or other physical characteristics to track employee access to the building and to log the proper number of hours worked. Usually, the more expensive the time clock, the less chance there is for fraud.

How Fingerprint Time Clocks Help The Bottom Line

When an employer looks at their bottom line, they almost always see that payroll eats the biggest chunk of the money. It is the biggest expense business owners face. Add to that, whether white or blue collar, employees have long been involved in payroll fraud. Fortunately, the implementation of fingerprint time clocks can help steer away from fraud.

Fingerprint time clocks capture the unique fingerprint of each employee for use when he or she comes to work every day, whether on site or off site. Removing theft of time from the equation may help employers get a handle on payroll costs, as well as curtail time theft.

With this new technology, employees will no longer be able to punch the time card of a co-worker, reducing time theft. A time clock will also eliminate the time consuming task for the human resources department of having to manually calculate payroll. Additionally, there is no storage space needed like there is if you have to store time cards for tax record purposes.

To set an employee up in the fingerprint scanning system, an employer need only have the employee put his or her finger on the scanner and his or her unique fingerprint is scanned. The fingerprint scanners are easy to use and are portable and easily tied into a company’s computer system.

Streamlining the preparation of payroll, as well as taking the idea of employee theft of hours out of the equation of running a business, allows employers and their employees to focus on the job at hand – running the business. Electronic payroll systems integrate well with fingerprint time clock and can help streamline a business to an even finer degree.

Tips to Help Implement a Time Clock

There’s no doubt that employee time management is a critical component of any workplace’s productivity and efficiency. Employee time clocks can be a valuable resource and vehicle when managing employee’s times and making sure those employees are spending their time wisely.

Time clocks help businesses accurately store and track employee time data. Using this data, management can assess whether or not the company is performing as efficiently as possible and if any productivity issues are present in the workplace.

An employee time clock will not work up to its potential if it is not implemented correctly. All employees, not just management, should be familiar with the time clock system and how it works. Your employees will be the ones, after all, using the time clocks to punch in and out and to track payroll and time data.

After selecting and purchasing a time clock system for your workplace, arrange an orientation session for your employees. Consider asking a representative from the time clock company from which you purchased the product to help you with the session. Take time to make sure that all employees understand the details and capabilities associated with the time clock system and answer all questions. Consider distributing users manuals or cheat sheets that detail how to use the time system.

To correctly implement a time clock system, make sure that system can grow with your business. Limited scalability systems will not accommodate company expansion and growth, so go with a system that can last with your company through such changes.

Making A Smooth Transition to A Biometric Time Clock System

Human resource professionals are faced with many decisions on a daily basis, not the least of which are the items that relate to payroll. In some companies, especially those with telecommuting or other off-site employees, the switch to a biometric time clock is becoming more of the norm than in the past. It’s difficult and time consuming to track hours with the use of an old style time clock and also these card-based time clocks can lead to employee hour fraud. 

While your employees may be resigned to the fact that they have to punch a time clock, they may balk at the idea of a biometric time tracking system and might consider it an act of Big Brother checking up on them.

The introduction of any kind of new technology, especially a time tracking one, needs to be done with grace and tact and most importantly you need to show the employee how this new system will benefit them on a daily basis. The chief employee benefits are that they can rest assured they won’t have to worry about mistakes in the calculation of their hours. They will also be better able to track not only hours worked but also time off, comp time earned and they may even be offered the option of going online to schedule vacations. This will make it easier for them and easier for the human resource professional that used to juggle vacation schedules manually. 

With a biometric time keeping system you can have it programmed to recognize fingerprints or you can give your employees unique pass codes so they can log in to their own system and begin tracking their workday as soon as they start work. The system can also be set up to log in when they start, log off for breaks and log off at the end of the day. A biometric time clock eliminates the chance for employee fraud of having a fellow co-worker log them in and out for hours they might not have even worked. Open lines of communication between the human resources department and the employees will make the switch more palatable but the bottom line is the implementation of a new time and attendance system is the company’s decision. 

Biometric time clocks offer your employees the chance to log in and track hours worked, whether they’re close to overtime, whether they have time available for a day off and how many sick days are left. These time clocks offer employees peace of mind and eliminate their need to go to the HR office to see if they have time available. Instead, they can look it up themselves and that offers them autonomy.

Biometric time clocks pay for themselves in the long term by offering employers the benefit of freeing up human resource employee time from not having to manually calculate hours worked. It also virtually eliminates the possibility of inaccurate time keeping and mistakes in paychecks.