- Published: Tuesday, 08 November 2016 14:35
Employee Time Tracking Prescription to Avoid Top 3 Payroll Errors
By Shannon Corgan, Director of Marketing
Collecting and managing employee time can be a painful for your employees and supervisors. It’s also not a walk in the park for your payroll and accounting teams. No one likes mistakes on their paychecks. Three of the top issues that cause payroll errors are manual card computation errors, overpayment errors and underpayment errors. Now, let’s dive in and see how WorkMax can be the best prescription to cure your payroll errors.
Manual Time Card Computation Errors
Employee time tracking can be tough to manage and labor intensive without an automated solution that can collect time anytime, anywhere and on any device. When you are collecting employee time tracking data on spreadsheets and paper time cards, you are unfortunately stuck keying in the data into the accounting or payroll system. It’s not only a pain for your staff to do; it’s also prone to human error. According to a study by the American Payroll Association, manual time card computation errors can cost you one to eight percent of your annual gross payroll. One percent might not seem like a big number, but don’t forget labor costs are typically the biggest expense on the balance sheet. These manual computation errors are due to numbers being rekeyed incorrectly, transposing numbers, or misreading handwritten records.
With an employee time tracking solution like WorkMax, you can eliminate these manual computation errors. WorkMax works where your employees work, whether it’s in the office or in the field. WorkMax can collect employee time from a smartphone, iPad, tablet, laptop or desktop computer. Employees enter their time from any device anytime anywhere and removes the need for manual data entry to get their hours worked into the payroll system. Supervisors and payroll employees no longer have to worry about double calculating hours worked, illegible handwriting and manually rekeying the information. Your payroll staff will be extremely grateful to get rid of all of their data entry hand cramps too. With WorkMax TIME, all of your payroll errors from manual time card computation are gone.
In addition to accurately collecting labor hours, many companies want to also assign those hours to a particular project or job and break it down further to the types of activities or tasks that were performed by the employee. Additionally, to accurately allocate those labor hours to the right jobs and the tasks that they performed can feel like torture when you’re using paper time cards and spreadsheets. With WorkMax TIME, allocating the time to the right projects and activities is easy and can be done in a few clicks. n three clicks on any device, employees can enter time, pick their activity, and project in less than ten seconds, whether it’s at their desk or on their mobile device.
Overpayments and Underpayments
According to the Ernst & Young Global Payroll Survey, one of the most frequent payroll errors is overpayments or underpayments. Nearly 30% of payroll errors are a result of overpayments or underpayments. Overpayments are caused for a few different reasons. One type of overpayment happens when an employee receives pay for a period after they terminate or start an unpaid leave. There are also time entry errors when an employee is paid for too many hours or paid for paid time off that was not available. There can also be errors caused due to inaccuracies with their hourly rate or salary amount per month.
If you choose an integrated platform like WorkMax, you can reduce the number of overpayment errors. By using WorkMax FORMS combined with WorkMax TIME, employees can log time and attendance and fill out needed company forms all within one app.Typical status changes that would affect payroll are Unpaid Leave, Paid Time Off, Separation from the Company, or Jury Duty Pay.This information can then be automatically sent to payroll to ensure that the employee is not overpaid. You can also reduce the time entry errors with automated Employee Time Tracking Solution like WorkMax TIME. Because there is no manual rekeying of data from the time sheet to the payroll or accounting system and WorkMax TIME calculates the hours worked for you, you virtually eliminate overpayments for time entry errors. Additionally, by choosing an workforce management platform that works with all of your business applications, you can sync your HR database with WorkMax TIME to ensure your employees are getting paid the right hourly and salaried pay rates and get rid of payroll overpayments.
Ernst & Young Global Payroll Survey http://www.ey.com/Publication/vwLUAssets/Global_payroll_survey_highlights/$FILE/Global_payroll_survey_report.pdf