The Value of Integrating Payroll with Time and Attendance
How integration can streamline your time and attendance process.
Payroll and timekeeping errors can be extremely costly, especially when labor is already the largest expense for service contractors like janitorial and security businesses. One of the clearest ways to reduce these errors — and the headaches that come with them — is to move to a system that integrates your time and attendance process with your payroll system. Manual processes and multiple subpar software systems can only work for so long. According to the IRS, 33% of employers make payroll errors costing billions of dollars annually. And, the American Payroll Association shows an error rate of 1%-8% of total payroll from companies that use paper timecards. If you could reduce those numbers, how much money would your company save each year? Besides cost savings, here are a few more benefits of having your time and attendance fully integrated with your back-office payroll system.
Simplify Your Timekeeping and Save Money
When you automate your timekeeping processes and get rid of paper time sheets, you’re able to better control your labor costs because you can easily identify over-budget jobs or projects. You’ll also have better visibility of overtime. If you use a solution that offers tools like location and voice verification, you can confirm your cleaners and officers are onsite and on time.
And, you can address attendance issues immediately to make sure all shifts and sites are covered and your contract requirements are being fulfilled. This can also help you prevent issues like ghost employees that could be extremely costly. After implementing time and attendance technology and improving hiring and payroll practices, one commercial cleaning company discovered they had lost nearly $1 million in fraudulent wages over 10 years.
Reduce Data Entry Time and Errors
When your time and attendance is a stand-alone process, you end up spending more time on redundant data entry than if you integrated your timekeeping information with your operations and workforce management solution. If you’re working with an inefficient process, your software probably isn’t doing its fair share of the work. But, if you have an integrated system, you could cut your payroll processing by up to 90 percent. If your data is integrated with a holistic ERP solution, timekeeping information is immediately ready for seamless payroll, invoicing and reporting, so you can spend more time on high-value activities. And, it’s easier to meet IRS requirements for retaining employee tax records when they’re stored digitally in your back-office payroll system.
Lower Your Compliance Risk
Compliance requirements like meal breaks and safety touch points aren’t going away. If anything, they’re only going to increase. No matter the size of your business, managing the compliance of your workforce is essential to maintaining your business’ success. When you have messaging features as part of your time and attendance system, you have a trail of timekeeping records and message responses should you ever need them for an audit. You can also lower your wage fraud compliance risk when you integrate your time and attendance with your payroll system because you can ensure you’re paying your employees for the exact amount of time they worked.
Want to learn more?
Join TEAM for a free 30-minute webinar Thursday, May 23, at 12 p.m. CDT, to learn how software can simplify your timekeeping, reduce data entry time and errors, and make payroll prep a breeze with seamless integration to a back-office software solution. Register today.