The preparation of employee hours for payroll processing is often time-consuming and a big headache for payroll administrators. Calculating hours, auditing timesheets, correcting errors, and verifying employee time off are just some of the many things to do to ensure employees get paid accurately and on time.
Check out these 5 ways to process payroll faster using cloud-based employee time clock software. Read about the secrets to faster payroll processing and then get a Free Trial of PayClock Online to see how web based employee time & attendance software can work for you.
Faster payroll processing is attainable, and it's not even difficult to get started. All you need to do is work with us and before you know it, you'll be able to do things like automate payroll calculations such that you’ll be able to focus on other aspects of your job with a clearer mind.
1. - Automate payroll calculations
If you’re doing everything manually then payroll processing can be extremely time-consuming. Luckily, large parts of the payroll process can be automated to give time back to you while reducing errors.
Automate payroll rules for employee time.
Manually processing employee hours for payroll is not only time-consuming, but it is prone to human errors that cost companies time and money. The American Payroll Association estimates the rate of human error in time card preparation and totaling ranges from 1 percent to 8 percent.
While there are lots of tips and tricks on how to do payroll manually, there is an easier way. There is an easier way.
Time clock software automatically performs employee time card calculations and will accurately apply your company's payroll rules related to daily or weekly overtime and regular hours. When it comes to intricate calculations and variables, payroll processing software simply handles this task better than humans in most situations. It also leads to faster payroll processing so you won't have to worry about delays or scrambling to get things done at the end of every pay period.
Preset rule calculations for punch rounding
Wouldn't you like to eliminate the guesswork around rounding employee punch times? You're in luck.
Time clock software lets you choose from a variety of standard rounding rules such as automatically rounding employee hours to the nearest tenth or quarter hour. No more doing fractions-based math, no more hoping you're correct – faster payroll processing is not valuable unless it's accurate, and with our help that's exactly what it will be every time it's time to process payroll.
2. - Correct employee time card errors as they occur
No matter what you do, your timesheets aren’t going to be perfect. Employees forget to clock in or out, and suddenly, you’ve got a whole lot of work to do to make adjustments - that’s if you’re doing everything manually.
Quickly find errors and make adjustments.
When processing payroll, big delays happen when you must correct missed employee punches and verify missing time card information. People often ask “how long does payroll take to process,” and if you’re processing payroll manually, then the answer can be a long time.
Eliminate payroll processing delays by setting up employee managers with custom log-ins and permissions. This lets managers have real-time access to the time clock software, so they can review their employee time cards and quickly make corrections to mistakes as they happen. This is key, eliminating or correcting mistakes in real-time leads to faster payroll processing and results in accurate reports and payouts so you won't have to worry about things days or weeks after they happen.
Exception Finder.
Lathem's PayClock Online time clock software includes an Exception Finder feature to easily identify and address employee time card errors and missing information.
No more tracking down the individual employee or employee's manager at the office, or even worse, in the field, to verify punches when it is time to process payroll.
This is a huge time and money saver, since PayClock Online doesn't include extra charges for managers or other multi-users to access the software. We understand that faster payroll processing means that you need to deal with common issues as quickly as possible, and our technology is set up to do that right out of the box.
3. - Manage employee paid time off with mobile apps
Another challenge with online payroll processing is managing employees’ paid time off.
The more employees you have, the more difficult it becomes to manage, track and schedule PTO, but with the right technology, this becomes much easier.
Benefit time pay rules automatically applied.
More advanced time clock software lets employees see their paid time off (PTO) balances and make time off requests. Employees can even make these requests using a smartphone app. Managers can review and approve employee time-off requests.
Time clock software automatically updates the information into the employees time card during the pay period. If employees take paid time off, you save time preparing payroll because the correct PTO payroll codes are applied and calculated for each employee within the payroll period.
Not only will this lead to faster payroll processing, but it will all but eliminate confusion from the employee's perspective, as he or she will be able to ask questions at any time based on what he or she sees in the PTO balance.
Holiday calendar customized for your business.
With time clock software such as PayClock Online Enterprise, you can set up customized calendars for your company's paid holidays. If you do this at the beginning of the year, you can save administration time as paid holidays are populated for the payroll period in which they occur.
4. - Directly integrate employee time with payroll systems
A fundamental part of payroll is tracking and managing your employees’ time. Now you’ve got the right time clock systems in place, you need to be able to ensure that data is shared with the right applications so you can manage your small business payroll processing.
Integrate and export time sheets into payroll.
When it comes time to process payroll, don't waste time re-entering employee time card data into your payroll system. Save time and eliminate data entry errors with time clock software that offers direct accounting or payroll systems integration.
Lathem's PayClock time clock software will export employee hours and proper pay codes directly into payroll or accounting software like QuickBooks, Paychex, ADP, and many other popular payroll systems to create a complete payroll processing system.
Avoid having to enter data twice.
With PayClock Online time clock software, anytime you make adjustments or edits to employee time cards during the pay period, those changes automatically synchronize and update the employee timesheets in systems such as QuickBooks Online.
5. - Process payroll at anytime, from anywhere
You run a flexible, mobile workforce and your payroll processing needs to be able to keep up with this. When you’re putting systems in place for how to process payroll, you want the same kind of flexibility.
Get access on demand.
Imagine processing payroll when and where it is convenient. Cloud-based time clock software is accessible anywhere there's a web connection. Out of the office, working from home, or at another company location, you have access to employee timesheet data, reports, and calculations within the time clock software to complete payroll processing quickly.
Manage multiple employees from multiple locations.
Manage and administer employee time tracking for employees that work in the main office, remotely, or at different locations. And there's no need to worry about when you plan to process payroll.
With cloud-based online payroll processing, you are not tied to a desktop computer at one location. It's easy to prepare employee time for processing payroll from a PC, laptop or even a smartphone when it's convenient and from any location.
Payroll Processing FAQs
Payroll processing is something that can be challenging for many businesses, but it doesn’t have to be. Here are some of the most common questions we get asked about payroll processing.
What type of processing is payroll?
Payroll processing is the process of working out how much your employees should be paid based on the number of hours they have worked. It involves tracking workers' hours, accurately logging them, and factoring in adjustments such as PTO, taxes, and deductions.
In the past, this process might have been quite complicated, with lots of manual actions being required. However, modern payroll processing software automates the process, making it more accurate, and more efficient for both managers and employees.
What does payroll processing involve?
Payroll processing involves totaling an employee’s hours and accurately paying them, taking into account the employee’s type, status, salary, wage, and reductions. This is a lot of information, particularly if you have a growing workforce, and it becomes very challenging to do manually.
What are the steps of payroll processing?
Payroll processing can be broken down into simple, efficient steps using time clock software:
- Employees clock in through a physical time clock, through their online account, or on the app.
- Clock-ins are logged automatically in timesheets.
- Managers and administrators log in online to view and edit timesheets.
- Once the timesheets are approved, they can be automatically synced to your payroll software.
- Payroll software ensure employees are paid the correct amount for their work
There are no complicated calculations, no spreadsheets, and no guesswork, just simple online payroll processing.
What are the five main phases involved in payroll processing?
Setting up your payroll processing can be broken down into five main phases:
- Choose your payroll system - This will usually be a choice between outsourced, manual, or payroll software.
- Develop a payroll policy - Consider state and national laws and decide on issues such as how often and when you will pay your employees.
- Create pay stubs - Pay stubs are a summary of each payment you make to your employees
- Put time tracking systems in place - If you're going to pay your employees the right amount, then you need to know how many hours they work.
- Continue to update payroll records - Approve and submit payrolls to ensure your employees are paid in a timely manner and keep your payroll records up to date.
Is payroll processing difficult?
Payroll processing can be difficult, but it doesn’t have to be. Monitoring clock-ins, PTO, deductions, and everything else can be very time-consuming if you’re doing it manually. Human error is likely to factor in, and this can lead to payroll issues.
However, there is a much easier alternative, and modern payroll processing services as well as time clock software can automate large parts of the process.
How long is payroll processing?
If you have a good payroll processing system set up, then payroll shouldn’t take long. With large parts of the task automated, you can sit back and let the software handle the strain, completing the process in 1-2 days.
Start automating your payroll processing
Putting the right payroll processing systems in place can make a huge difference to your business. Not only will it save you a huge amount of time, but it’s also likely to be a lot more accurate. This will free up time for staff to focus on other important tasks, helping to take your business forward.
The first step is properly logging employee time, and this starts with timeclock software from Lathem.
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