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.

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.

How to Stop Buddy Punching

Most everyone who has used a time clock is familiar with the idea of “buddy punching”. A way for one worker to punch in for another, ensuring hours are recorded for an otherwise absent employee, buddy punching is a problem for the workspace because it results in both employees stealing money from the employer. Even more distressing is the fact that this practice is wide spread and can cost U.S. businesses up to $200 per employee per year, according to economists.

There is good news however! Buddy punching is easier than ever to eliminate with the installation of a biometric time clock. These time clocks come in several brands and styles and can read everything from a fingerprint to a hand. This method of clocking in prevents someone else from clocking in for a friend, and creates a fair, more honest environment for everyone.

Even small companies can benefit from a biometric time clock. Not only do these clocks help stop buddy punching, but they make back the investment in them with the ease of use and peace of mind they bring. Newer devices are even able to store lots of information, including time, hours worked, holidays taken or owed, and various other data about that particular worker.

Many biometric time clocks are interactive and user-friendly. A worker can access their own work history, time sheet, and other information via the screen of the biometric time clock. While new technology can be threatening in the work environment, giving the employee access to their information allows employees to accept the device as well as helps human resources integrate cost-efficient technology into the department with little complaint.

Buddy punching is an easy problem to solve these days, so be sure you invest in a quality time clock to help you keep your business on track. Your employees, human resources, and ultimately yourself will be grateful for the ease that comes with one of these devices.