From money flowing into money flowing out, it’s vital to ensure that all checks and balances are in place for the smooth flow of cash to support business operations. But what happens if the data from your employee’s payroll is full of errors? A new study shows how many businesses nationwide are suffering from problematic payroll problems that stem from errors in counting employment hours.
Employee compensation, as reflected through payroll, is only as accurate as the data used to generate payroll for each pay cycle. And the time and attendance information that tracks employee work activity are far from accurate, according to Getting Paid In America, a study conducted by the American Payroll Association (APA) for 2017’s National Payroll Week.
Close to 34% of employees throughout the nation are not tracking their time accurately throughout the workday. The reason? They simply aren’t required to.
The survey further found that over 14% of employees’ time tracking came from timecards and timesheets. The results were consistent with results of a survey conducted by TSheets that found that a quarter of employees tracking their own time did so manually using paper or a spreadsheet, and another 10% used traditional punch clocks.
The APA survey also found that 33% of employees are using their computers or their laptops to track their time, while small fractions are using phones, smartphones, company badges, biometric scans, and even PDAs.
Accurate payroll data must be a group effort. As an employer, it’s one of your many duties to ensure that you are tracking the time of your workforce. In the interest of keeping data clean and accurate, now is the time to start managing that data effectively. No matter your industry or business, managing time is of the essence, both for compliance with regulations and for business purposes, such as meeting deadlines on projects and managing overtime. Time and attendance is an important piece of business intelligence that can make a difference in the success of your business, not to mention your ability to comply with government regulations, such as overtime requirements set by the U.S. Department of Labor (DOL) and the Affordable Care Act (ACA).
If your employees are still logging their time manually, or not at all, bring your time and attendance activities into the modern age. If you’re unable to handle this task on your own, seek out a third-party solution that can assist in this process. There is a diverse set of software options available to businesses at affordable prices. Some software, not only tracks time and attendance but can be used to gather and consolidate additional workforce data to help companies identify tax credit opportunities.
Modernizing how your business accounts for time and attendance will provide important business insights that can improve operational and financial performance. It can save you money in the long run and allow for more accurate payroll data to fuel your business success.