It is a fact that time is connected to money in life and in business. Making certain in 2020 that your company does its timekeeping 100% accurately. Using an online timekeeping system will assist your company in maintaining a system that makes every penny that your company pays for payroll is totally accurate. If your company is employing an old-fashion time clock where employees clock-in and clock-out and your company may be losing critical money by way of mistakes and employees not recording their hours worked honestly. It is a sad fact, but sometimes employees’ game their company’s timekeeping system and record hours they did not work. There are legal issues you may have to deal with if your timekeeping records are not accurate.
The critical importance of accurate timekeeping to your company’s success and bottom line has become a focal point that business owners in 2020 should concentrate on. Bear in mind there are several logical factors to keep in mind as to why you as a business owner should make certain your company timekeeping is totally accurate. Those factors are as follows:
- U.S. Department of Labor Mandates 100% Accurate Timekeeping Records (DOL) – Since its inception, the U.S. DOL has fine companies and corporation millions upon millions of dollars for inaccurate timekeeping that led to unpaid overtime, unpaid pre-shift work and after-hours work along for other infractions. Any amounts of minutes of timekeeping not kept accurately start accumulating the minutes that eventually become hours of unpaid payroll. This means levied expensive fines for the company when discovered.
- Inaccurate Timekeeping Can Trigger an IRS Audit of Your Company – When the IRS audits your accounting and timekeeping records you will be required to directly explain all inaccurate record keeping issues, whether the shortfalls are several hours or only minutes. By changing to an online web-based timekeeping system you will most likely be able to provide print timekeeping audit reports and also use them to properly run your day to day business when it comes to payroll and accurate timekeeping. Additionally, with an online web-based timekeeping system you will be able to demonstrate to IRS auditors that your company has a system in place to maintain accurate timekeeping records and so it pays its payroll accurately. Using an online timekeeping system will assist your company in maintaining accurate quality timekeeping records and to pay payroll accurately. In the end your company will be more profitable, and your employees will be paid correctly for the time they have worked.
- Fair Labor Standards Act Compliance (FLSA). – It is possible that you will pay FLSA fines and pay back wages if you do not employees all their wages and overtime pay due. The bottom line is your company may work hard at being fair to your employees, but if you have incorrect timekeeping records and use them to pay payroll, your employees will not receive all their wages. When timekeeping records are wrong, chances are you may violate wage and hours laws and get fined by the FSLA because of incorrectly paid wages.
- Online Timekeeping Leads to a More Positive Work Environment – Employees
that are satisfied and feel confident and safe when it comes to wages being accurate and on time are generally happier more productive employees. When a company changes to online web-based timekeeping it gives company employees the tool to record their time worked easily and it eliminates the need for a hassle-oriented time clock. Employees feel good about knowing they are being paid accurately for the time they have worked for the company.
- Online Web-Based Timekeeping Provides An Accurate Timekeeping System for Employees and Employers Companies with workers that work at home or in other locales like other states or overseas need a timekeeping system that can record time worked for all types of employees including local and remote. For fraud prevention, security, and accuracy a simple face scan verification system may need to be installed to validate each employee timekeeping submission. In 2020 there are several validation systems available for timekeeping verification that covers most company’s requirements for risk and validation of timekeeping hours.
Accurate Timekeeping Safeguards Your Company’s and Profitability
The Payroll Company provides state of the art secure online timekeeping as well as payroll processing, benefits management systems, and management consulting services. We offer payroll processing for small to medium size businesses in New Mexico, Oklahoma and throughout the Southwest.