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Top Payroll Challenges Faced by Small Business Today

December 8, 2023 Kevin Kenealy Payroll Problems, Uncategorized Comments Off on Top Payroll Challenges Faced by Small Business Today ,
Top Payroll Challenges Faced by Small Business Today

Small businesses out there usually have to deal with numerous challenges these days. For example, they have to make quick decisions to adapt according to the rapidly evolving business environment. Without making such decisions, it is challenging to remain competitive. In the meantime, it is also important to make the right moves at all times.

Payroll processing internally is one company procedure that exemplifies the complexity issue in a great way. There are many moving pieces in payroll, so it makes sense that processing payroll accurately and on schedule can be somewhat difficult. In addition, if anything goes wrong, it can result in a number of additional issues, such as low staff retention and compliance infractions.

Given the inherent complexity of managing payroll internally, there is no way to avoid frequent payroll difficulties. However, you also understand as a small company owner how crucial it is to do it properly. Today, we’ll examine the top five payroll issues and discuss how payroll software can help you resolve them by streamlining and simplifying the payroll processing process.

Hybrid Work Environment

You are in charge of a hybrid workforce if you have some workers who work from home and others who work in the office. Nowadays, a greater proportion of workers at small and medium-sized companies (SMBs) work remotely or in hybrid workplaces (63%) than at a single site (37%). Although a mixed workforce gives workers the most freedom, it can also lead to the most payroll-related hassles.

Your remote workers, whether part-time or full-time, are subject to the minimum wage, paid time off, tax withholding, and other requirements of each state in which they work. Payroll complexity can be further increased if you had different payroll regulations for employees who work remotely from different states and one set of standards for employees at your physical site.

Adhering to Laws and Regulations

Business compliance often becomes more difficult with time, not easier. Each year there are new laws and amendments to the ones that already exist. A number of new laws were implemented during the pandemic to accommodate for the significant changes that were occurring in the workplace. Growing your firm can even expose you to new and distinct rules. There are now around 180 federal labor rules that apply to different types of enterprises.

The Family and Medical Leave Act (FMLA), which regulates unpaid leave, the Fair Labor Standards Act (FLSA), which controls salaries and overtime, and several other laws that apply to contract workers make payroll compliance a complicated process in and of itself. Maintaining payroll and human resources (HR) compliance is a complex task that need for legal expertise and meticulous attention to detail in order to avoid fines for non-compliance. However, this means that your payroll team will have extra work on their hands.

Overloaded Payroll Administrators

As we’ve seen, payroll administrators have a great deal of duty. It’s difficult to maintain track of payroll records, make sure direct payments and paychecks arrive on time, and manage daily record-keeping. However, a lot of small organizations just have one employee designated to the HR department rather than a whole team. Regardless of the size of your team, they almost never have time for strategy or other high-value jobs since they are too busy with the daily administrative duties that are essential to the smooth operation of the office.

One of those jobs that takes so much time and energy to do that there isn’t much time left over to examine the procedure and see how it can be made simpler or better. This is payroll. Insufficient resources and a plethora of conflicting objectives cause the resolution of payroll process issues to fall farther and further down the list.

Usage of Manual Methods

The fact that many firms still manually handle payroll using a mix of data entry techniques like spreadsheets and antiquated payroll software with limited features is one of the reasons payroll is more time-consuming and difficult than it needs to be. If that describes your employees, switching from many payroll spreadsheets in and out of various software programs could be comfortable, but it also raises the possibility of payroll problems, which take longer to diagnose and correct.

The uneven nature of human paycheck processing is another prevalent issue. Rather, each payroll employee probably does the procedure in a unique manner. Producing consistent payroll data and important employee information that can be used for reporting and beneficial workforce research becomes almost impossible as a result.

Complicated Work-tech Environment

Even if you’re prepared to move payroll service providers, it might be intimidating to learn about the world of outsourcing. A lot is happening in the world. Payroll solution providers, for instance, provide a payroll system for smaller and medium-sized organizations. However, some systems are designed for huge corporations and hence include an overwhelming number of bells and whistles.

This complicates the process of selecting a supplier. How do you be sure you’re not overspending and that the solution you choose is the best fit for your company? However, how can you be certain that the solution you choose will be able to grow and change with your company as it does? And how can automation be provided by the system when required?

Using a System to Manage Payroll Complexity

Difficulties with the payroll process don’t have to be something you simply put up with. Payroll solutions exist that consider these difficult times, enabling payroll and HR personnel instead of adding to their workload.

You can optimize and simplify your company’s whole payroll process with the proper HR and payroll technology system designed with SMBs in mind. You can:

  • Using a single, automated system with paperless processes and consolidated payroll and HR data
  • Pay workers on time and ensure that payroll, taxes, benefits, and other items are computed accurately.
  • Employee data is simple to find, handle, update, and communicate with other departments within the company.
  • Regardless of where you have workers, adhere to pay and tax regulations.
  • Obtain essential insight into your personnel, generate reports, and assess your people operations.
  • Expand your enterprise as required, unafraid of the system’s inability to keep up.

There are so many advantages to outsourcing your company’s payroll that you shouldn’t hesitate to profit from your partners’ experience!


Payroll Issues Top Business Matters to Know in 2024

November 2, 2023 Kevin Kenealy Uncategorized Comments Off on Payroll Issues Top Business Matters to Know in 2024
Payroll Issues Top Business Matters to Know in 2024

There are many regulatory concerns that businesses in the US must deal with, and it may be challenging to stay on top of them. The most significant compliance-related concerns that employers may encounter in 2024 are listed below, together with an analysis of the legal and regulatory framework in which these challenges are situated.

As company leaders faced with the economic effects of inflation and resorted to programmes like the Employee Retention Tax Credit and the Inflation Reduction Act, financing and eligibility for tax credits jumped to the top of the list this year. In the event that laws or rules are implemented, firms should be prepared for issues pertaining to worker categorization, compensation, and paid time off.

The company’s compliance specialists have determined that the following subjects should be taken into account by employers in 2024:

Small Business Financing

Even if there are now no new government programmes, enterprises may still take use of financial options that were left over from the COVID-19 epidemic, like:

The Employee Retention Tax Credit (ERTC)

Companies can file amended returns and retroactively claim the credit for paying qualified wages to keep employees working from March 12, 2020, through September 30, 2021 (and for some specific businesses identified as Recovery Startups, wages could have been paid through December 31, 2021). Businesses have until either April 15, 2024 (for three quarters of 2020) or April 15, 2025 (for all four quarters of 2021).

Equity in Pay

Equality in pay was back on state and municipal legislative agendas in 2022, and additional jurisdictions were expected to approve legislation in 2023. Seven states and a number of municipal governments will have enacted laws requiring employer pay disclosure by the end of 2022. Employers must also be aware of federal and state measures aimed at reducing racial and gender pay discrimination that may become laws in 2023. These initiatives target pay equality via yearly reporting comparable to the Illinois Equal Pay reporting and the present California Pay Data reporting.

Worker Classification Guidance

In late 2022, the U.S. Department of Labour released a proposal to revise the Department’s guidelines on the classification of people as independent contractors or employees for the purposes of the Fair Labour Standards Act (FLSA). The final rule from the U.S. Department of Labour will be published in 2023, but it won’t take effect until it’s applied to determining an individual’s status as an employee for the purposes of federal wage and hour law.

Employers are required to keep diligent awareness of and adherence to the extra demanding examinations for determining worker status in accordance with the many other federal, state, municipal, and industry-specific rules, and regulations.

Encouraging the Saving for Retirement

It’s likely that SECURE 2.0 will be out before the year is over, which will have a big effect on the retirement market. Expanding eligibility for the tax credit when a business establishes a workplace retirement plan, increasing the RMD age, requiring automatic enrollment in certain retirement plans, and even requiring student loan payment matching—which aims to address two crises at once: student loan debt and retirement savings—are just a few of the significant provisions of SECURE 2.0, which builds on the framework of the SECURE Act of 2019.

Wage and Hour Regulations

Following hearing sessions in the middle of 2022, it is expected that the US Department of Labour will present suggested changes to the federal overtime laws. One of the changes that would be made to reflect the current state of the labour market is raising the income threshold for exempt workers. It is projected that there would be more federal, state, and municipal regulations in areas such as fair scheduling legislation, the repeal of sub-minimum wage rates, and the removal of tip credit in some regions.

There might be an increase in industry-specific regulations following measures like the California FAST Recovery Act, which would establish a council with the power to establish fast food industry wage and hour standards and is potentially up for voter approval in 2024. This is especially likely to affect the hospitality, retail, and healthcare sectors.

Paid Leave

Although it doesn’t seem that a federal paid leave programme will be implemented in 2023, some states in the US studied passing laws in 2022 that would have allowed employees to take paid time off to care for themselves and their qualifying family members. The most recent states to enact legislation mandating paid family leave are Maryland, the District of Columbia, and nine other states. Thanks to laws established in New Hampshire, the first opt-in, optional paid family leave insurance programme will begin in 2023. Employers and direct workers will both have access to this programme.

Security and privacy

Given the growth and enduring prevalence of a hybrid and remote workforce, businesses must modify their privacy policies and cyber security protocols to properly balance their demands against employee and consumer expectations around the protection of personal information. Companies need to be transparent about how they collect, process, use, keep, and dispose of data. The absence of federal privacy legislation hasn’t stopped state governments from expanding their data protection measures.

Other issues that employers should consider include healthcare reform, tax modifications, and remote and hybrid work.


Top Factors in 2023 Why Changing to Online Benefits Enrollment System is a Game Changer

May 20, 2023 Kevin Kenealy Uncategorized Comments Off on Top Factors in 2023 Why Changing to Online Benefits Enrollment System is a Game Changer
Top Factors in 2023 Why Changing to Online Benefits Enrollment System is a Game Changer

Have you ever considered changing your regular HR processes to an online benefits enrollment system instead? There are numerous reasons why an online benefits enrollment system could be valuable for your business – and we’ve outlined some of the key things you should know to help.

Why Choose an Online Benefits Enrollment System?

There are many different reasons as to why businesses might choose an online benefits enrollment system. Just a few of the most common advantages, however, are summarized as follows.

Enhanced Accuracy

Mistakes can be a major issue with traditional benefits enrollment. Fortunately, by removing paper enrollment complications, it’s much easier to ensure that employees receive the benefits to which they are entitled.

Indeed, there are many common issues that could cause problems with paper forms, such as illegible handwriting. Moreover, lost forms can require completion again, and this can take up even more time (and resources). Fortunately, when these activities are taken online, things become substantially clearer and easier to manage overall.

Effective Communication and Efficiency

A major limitation with traditional benefits enrollment is that communications still need to be done in person. But, with online systems, sending out a notification to employees is easy – speeding up the communications process.

This is also true when it comes to the overall efficiency of the system. Indeed, benefits enrollment with an online system is substantially quicker and more efficient than paper-based forms, ensuring that the HR team’s valuable time is spent on the most important tasks.

Valuable Data

Did you know that many online benefits enrollment systems can also provide highly useful reporting systems? These help businesses make more informed choices on their own approach, going forward.

Designed with HR Professionals in Mind

Your business deserves the best. Luckily, an online benefits enrollment system is designed with professionals like you in mind!


Top 10 Wages on Demand Providers in 2023 & Why Companies Should Offer It as a Payroll Option for Employees

April 8, 2023 Kevin Kenealy Uncategorized Comments Off on Top 10 Wages on Demand Providers in 2023 & Why Companies Should Offer It as a Payroll Option for Employees

In recent years, wages on demand have become a popular payroll option for employees. Wages on demand allow employees to access a portion of their earned wages before their payday. This service can be beneficial for employees who need money to cover unexpected expenses or emergencies. In this article, we will look at the top 10 wages on demand providers in 2023 and why companies should offer wages on demand as a payroll option for their employees.

Top 10 Wages on Demand Providers in 2023

  1. DailyPay
  2. PayActiv
  3. Even
  4. Earnin
  5. FlexWage Solutions
  6. Instant Financial
  7. Kashable
  8. PayNearMe
  9. Rain
  10. Wagestream

Why Companies Should Offer Wages on Demand as a Payroll Option

  • Employee Satisfaction – Offering wages on demand as a payroll option can increase employee satisfaction by providing employees with greater flexibility and financial stability.
  • Financial Wellness – Wages on demand can help employees avoid high-interest loans or credit card debt, improving their financial wellness.
  • Retention – By offering wages on demand, companies can improve employee retention rates by showing that they care about their employees’ financial well-being.
  • Recruitment – Companies that offer wages on demand may attract more job applicants by offering a unique and attractive payroll option.
  • Cost Savings – By reducing the number of employee requests for payroll advances, companies can save time and money on administrative costs.
  • Compliance – Many wages on demand providers handle the compliance aspects of the service, ensuring that the company remains compliant with all relevant regulations.

Conclusion

Wages on demand is a popular payroll option that provides employees with greater financial flexibility and stability. By offering wages on demand as a payroll option, companies can increase employee satisfaction, improve financial wellness, and reduce administrative costs. The top 10 wages on demand providers in 2023 include DailyPay, PayActiv, Even, Earnin, FlexWage Solutions, Instant Financial, Kashable, PayNearMe, Rain, and Wagestream. Companies that are interested in offering wages on demand as a payroll option should research these providers to determine which provider best meets their needs and the needs of their employees.


Major World-Wide Payroll Developments to Watch for in 2022

April 14, 2022 Kevin Kenealy Uncategorized Comments Off on Major World-Wide Payroll Developments to Watch for in 2022
Major World-Wide Payroll Developments to Watch for in 2022 by The Payroll Company 505-944-0105
Major World-Wide Payroll Developments to Watch
for in 2022 by The Payroll Company 505-944-0105

Technology and digitalization have made it increasingly difficult for company executives and decision-makers worldwide to keep up with the pace of change in the global economy. Despite this, planning is becoming increasingly challenging in a continuously changing environment. The future is more unpredictable than ever, particularly considering the significant disruptions generated by the coronavirus epidemic. Global payroll will be no exception.

In the wake of COVID-19, payroll executives worldwide are presented with a slew of unanswered issues that need to be answered: What innovations are expected to affect global operations in the future? What are the most significant changes in the world’s payroll that we should be aware of? In 2022, where do you think the worldwide payroll will be?

Planning for the future means company leaders need to consider several essential elements.  This subject will be discussed further here.

In 2022, the payroll business will be influenced by several global developments.

The impact of COVID-19 on businesses and the workplace has been significant. Although the epidemic is nearing its end, its legacy is predicted to have a lasting effect on the way companies operate in the future. As a result of the epidemic, there has been a rise in the use of intelligent and artificial intelligence technology and cloud-based solutions. According to several industry analysts, working from home or remotely is expected to remain popular in the next year. Employee satisfaction is now more vital than ever because of the pandemic’s profound effect on employees’ perspectives. In 2022, these global changes will heavily influence the global payroll environment, which may be seen on an industry-wide level.

1. On the road to next-generation payroll

Next-generation technology is steadily finding its way into every industry and business sector. And the payroll industry is no exception. According to the 2020 Deloitte Global Payroll Benchmarking Survey, 15% of businesses have already implemented next-generation payroll systems. Furthermore, another 49% of companies hoped to deploy innovative technology in three years. It was a typical response from corporate leaders when asked which technologies they were planning to implement in the future: engagement platforms, robots, and automation. Hyper-automation and machine learning, such as continuous payroll processing and fraud detection, is getting much attention early on.

2. Cloud-based solutions will be prevalent.

Cloud-based technologies will be a critical component in making global payroll appropriate for the “new normal.” the use of cloud-based solutions to support payroll activities is another technological development that is predicted to become even more critical. According to the Deloitte survey, 57 per cent of the firms polled had already implemented or planned to deploy a payroll cloud solution over the next three years, while another 27 per cent had already implemented or were preparing to implement one.

3. Data will be critical.

An essential takeaway for company executives concerning payroll is that access to consolidated, real-time data for their whole global workforce is vital to making educated business choices and managing global payroll expenditures. According to Gartner analysts, global payroll data has become a significant resource for labor management after COVID-19.

4. Alternative payment methods are on the rise.

Shortly, payroll processing will be fully automated, and data driven. However, what happens when the payroll computation is completed? According to the experts, there will also be a significant shift in the way employees are paid. Currently, on the horizon, new payment methods such as earned wage access are projected to be adopted on a broader scale in places like the Asia-Pacific. Alternative forms of paying employees are the same. The use of digital wallets and other alternative payment methods is expected to rise dramatically in the global payroll sector as a solution to delayed and costly cross-border payments.

5. Employee satisfaction is more important than ever.

It’s no surprise that improving the employee experience (EX) is a significant priority for company executives in the wake of the pandemic’s continued struggle to attract and retain top-tier employees in 2022. It’s becoming more and more common for employees to ask for time off, change their personal information, or see their pay stubs online. Payroll plays a critical part in the active effort to create a good experience for workers. However, this is only one part of fulfilling the aim of ensuring that worldwide teams get paid on time and in the correct currency.


Strategic Steps to Follow When Hiring a Payroll Processing Company

March 24, 2022 Kevin Kenealy Uncategorized Comments Off on Strategic Steps to Follow When Hiring a Payroll Processing Company
Strategic Steps to Follow When Hiring a Payroll Processing Company by The Payroll Company 505-944-0105
Strategic Steps to Follow When Hiring a Payroll Processing Company by The Payroll Company 505-944-0105

Payroll processing service providers offer services levels of varying quality. Certain payroll processing service providers are super customer service oriented, and others teach their customers how to use their system and are not much help to speak of after that when problems arise. Here are a set of positive payroll processing attributes businesses and organizations like county governments need to seek and find in place when choosing a payroll processing provider.

  • Payroll Processing Service Level Components: In addition to managing your company’s FICO taxes, FICA taxes, workmen’s compensation, and payroll processing, factor in if the company provides payroll debit cards, paper payroll checks, and a selection of payroll payment choices. You will also want to know if the company provides services that include several payroll wages rates, management of unemployment insurance and quality payroll reporting reports.
  • User-Friendly: Payroll services should be easy to use for its users. The
    dashboard should be intuitive where payroll processing and other functions are straight forward, including running reports and adding new staff onto the system.
  • Price Affordability:  Logically companies desire finding a service that fits into their budget. On top of price, learn if the service requires a long-term contract. These days many payroll processing agreements offered by payroll service providers are not set up as long-term contracts, but as month to month. Be sure to confirm if you pay for the service monthly, or on a pay period basis. The payroll payment frequency will affect a business directly financially.  This could impact how much it will cost the business per year to pay for payroll processing services.
  • Good Standing: Locate a payroll processing provider with a solid business record and a positive set of reviews online from more than one review source. By doing your due diligence on the companies you are considering you will know the company you choose has been doing a great job for the companies they do payroll processing for and that they have a good reputation.  
  • Payroll System Integration: If the payroll processing service provider integrates the system they offer via direct integration or by open API, you must have a system that works with your company’s bookkeeping, time keeping and accounting system.
  • Customer Service: Seek out a system has a reputation for providing excellent ongoing personal customer service. Check with the company’s you are interviewing to hire for to be your payroll service provider will assign a dedicated customer service representative to your business.  
  • Downtime & Maintenance: Payroll service providers today are online which means they are cloud-based. If your payroll service provider’s system goes down, you will not be able to do payroll for that payroll period. Ask the payroll service provider you are considering hiring to do your payroll how often their system does down, and how many times they go down due to scheduled maintenance.
  • Employee Online Payroll Dashboard: Online payroll service providers offer a employee online dashboard that gives them access to prior period paycheck stubs, year-end W-2s, paid time off totals and sick leave information.
  • Supplemental Services: Many payroll service companies provide a suite of services that include benefits management, human resources management and government timekeeping services.

Take the time to do your due diligence when making the decision to hire a payroll processing provider. Be sure to create an outline of the list of services your company needs such as payroll processing, benefits management, timekeeping, human resources. From there make a list of companies to consider hiring for the services your company needs. Check out each on using the list provided here, make notes about each one and then use your notes to make a relative comparison of the companies to make a smart choice for your company’s payroll service provider.   


Increased Payroll Expenses And More US Hiring Developments To Look Out For In 2022

January 10, 2022 Kevin Kenealy Uncategorized Comments Off on Increased Payroll Expenses And More US Hiring Developments To Look Out For In 2022
Increased Payroll Expenses And More US Hiring Developments To Look Out For In 2022 by The Payroll Company 505-944-0105

In this article, we’ll look at the newest developments in payroll and how you can ensure your global payroll operations are future-proofed and optimized.

The future of the payroll industry, and indeed business in general, is probably the most uncertain it has ever been. The knock-on effects of the pandemic have impacted – in some cases quite severely – on the way people work. The additional strain due to these changes on payroll teams is becoming more and more evident.

Because of this uncertainty, being able to predict what will happen in the future is difficult – even when you’re only looking a few years ahead.

However, there are three major trends that are already surfacing which could very likely be game changers within global payroll in 2022.

We’ll exam these trends and the possible impact that they will have on businesses who are trying to establish an efficient and strong global payroll operation:

Multi-country service adoption growth

The increase in the numbers of people working flexibly and from home has broken down many geographical barriers within the business and job markets.  It’s made it much easier for inter-country transactions, and for companies to explore new opportunities in other territories.

This means that the existing trend of ‘glocalization’ is likely to increase.  Glocalization can be explained as global businesses being able to cater for each country, area, or region’s individual needs.  Future growth is a by-product of being able to do this with local expertise, meaning an expansion of opportunities.

However, this means businesses must be ready for the challenges presented from a payroll perspective.  Making payments across borders and dealing with currency exchanges regularly is likely to become the norm.

The payroll demands of a company will be constantly evolving to meet the continual scaling of a business in different places – whether this be upwards or downwards. Therefore, it will be vital to keep track of everything using agile technology and ensuring global payroll demands are both efficient and accurate.

The rise of digital wallets

As well as exploring ways to run an effective global payroll system, employers are also looking at ways that employee experiences can be positively impacted. 

It’s a well-known fact that employees with talent hold most of the cards within the job market. Therefore, these employees will favor companies who can deliver on their expectations.  This is irrespective of whether the employee elects to stay with their current employer or to move on.

With the increase in these demands, employers are exploring alternative payment methods and will likely move from trend-setting differentiator towards becoming mainstream in 2022.

One of these innovative payment methods is the use of digital wallets.  Users can make payments and manage their money electronically, like how Google Pay and Apple Pay are used for purchasing.

However, this technology is not just reserved for making payments, it’s being used to receive payments too. Salary payments via digital wallet are being increasingly used.

This is especially relevant in regions like Africa, where it is much more convenient for employees to utilize mobile payments because traditional banking infrastructures are of poor quality.

Earned Wage Access, where employees accrue pay in a self-service application and can then withdraw their earning at their leisure, should gain much more popularity with companies who seek to maximize their payroll flexibility.

Payroll becoming more than payroll

One of the most exciting developments with global payroll becoming more integrated is that it becomes a force for good and reaches further into a business that previously.  This is mainly due to the advancement of both technology and analytics.

The innovations becoming available to payroll teams regarding digitalization, automation and predictive analytics is mind-boggling!  All these areas will play a major role in reducing human error and streamlining processes.  This in turn saves valuable time and resources, allowing payroll teams to utilize the saved time on projects and processes that require more critical thinking.

The wealth of improvements not only involve payroll, but the deeper insights gained can improve the company’s finance, HR and other operational areas across the board.

This not only applies to technology and physical systems, it also works on a human level.  Rather than just advising what’s best from a payroll perspective, payroll practitioners can become strategic advisors.  The availability of data insights means that decision-making process at all levels can be influenced.

This works on a human level, as well. Payroll practitioners, rather than just advising what’s best from a payroll perspective, can become strategic advisors; they can use the data and insights at their disposal to influence the decision-making processes at the very highest levels of an organization.

To make the most of the opportunities available to you in 2022, the Payroll Company’s payroll solution is equipped with all the multi-state functionality, analytics, and technologies that you require.

Find out more about The Payroll Company’s payroll solution here, and let our professional, knowledgeable, and experienced team help you remove any headaches and streamline your business.


Timekeeping in the Workplace Explained

July 11, 2021 Kevin Kenealy Uncategorized Comments Off on Timekeeping in the Workplace Explained
Timekeeping in the Workplace Explained by The Payroll Company

Understanding Timekeeping in the Workplace

The simplest way to assess work costs is to keep account of time spent on the job, which has been done since antiquity. Many different types of timekeeping have emerged over time and are now employed in various fields.

The goal of timekeeping isn’t just to calculate labor costs. It is also useful for:

• Aiding in the collection of critical company data, allowing for efficiency analysis and improvement.

• Managers and business owners can use time records to spot crucial trends.

• Employees, on the other hand, may track their time to identify where it goes and then improve efficiency levels.

What is timekeeping?

Timekeeping systems began to evolve following the Industrial Revolution when the “time is money” idea dictated the interaction between employers and employees. In addition, the widespread use of machines in industrial activities in the nineteenth century impacted timekeeping: the first-time clock for attendance monitoring and tardiness tracking was produced in 1888.

As time progressed, it became apparent that attendance and punctuality data alone were insufficient, especially as it related to more white-collar positions or “knowledge work.” Employers and consumers both wanted to understand where their money was going; thus, timesheets were created. Lawyers and consultants were the first to use timesheets. They are now employed in a variety of areas, such as manufacturing, construction, and information technology.

Detailed activity tracking became available as technology advanced and electronic devices became standard work equipment in various industries. As an example, users’ activity on their computers can be recorded using specialized software, which is then utilized to generate detailed performance reports.

Various timekeeping methods are employed today, depending on the information and levels of analytics required. They’re regarded as a reliable source of information for both organizations and individuals. 

Let’s take a look at how they may help everyone involved in the job process.

Advantages of timekeeping

Timekeeping, as many businesses have discovered, provides tremendous benefits to both workers and employers. Understanding where your time (and that of your teams) goes can help you operate more efficiently, organize your work process and environment, and overcome unproductive habits like procrastination.

How timekeeping benefits businesses:

Accurate billing and accounting data.

Having precise timekeeping data is critical for organizations that bill their consumers on an hourly basis. In addition, it addresses the issue of underbilling and assists in the maintenance of strong client relationships.

Accountability and traceability.

Because timekeeping data is available in raw form and can be presented in reports, it may be used to learn more about how particular job assignments were completed and which parts took the most time.

Ease of planning.

Research indicates that future workload plans based on historical data turn out to be more accurate. Furthermore, timekeeping data aids in the identification of time-consuming activities and their elimination, as well as the optimization of the work process for future assignments.

Improved time management.

Defining time estimates and deadlines is required while setting up work processes. They require knowledge of how much time is often spent on various tasks, making it easier to set them up based on previously obtained data.

Improved self-control.

Employees tend to use time spent on certain work projects more carefully when they know it is trackable. This improves productivity and satisfaction.

Less time spent on administrative tasks.

Using timekeeping systems, businesses often see their administrative tasks reduced, with employees being given more time to focus on providing the organization’s core products or services.

Improved collaboration.

Tracking and monitoring team members’ activity levels are essential elements of information sharing within a group. This ensures efficient service delivery and helps develop both individual professional competencies and the company culture as a whole.

How timekeeping benefits employees

Improving the work process.

Knowing which jobs are the most complex and time-consuming makes it easier to allocate time properly and do them first.

Getting rid of procrastination.

Being conscious of your time costs encourages you to spend it more deliberately, reduce distractions, and take on more complex projects.

Recognizing overwork.

An overview of time expenditures might help you identify which tasks take up more time than your workday allows for and identify potential overloads.

Determining your responsibilities.

Seeing how much work you can get done in a given amount of time assists you with keeping your work at manageable levels and gives you a justification to say no to unreasonable assignments.

Receiving fair compensation.

Knowing how much time is required for doing your job can help you determine the right pay and compare it to others in similar positions. It also makes salary negotiations easier and increases your awareness of overtime issues (as in being compensated for it).

Achieving personal goals.

Timekeeping software can be used as a tool for self-analysis and helping you determine how much time answering e-mail or preparing reports really takes, which may help you set time limits for yourself, increase productivity and reduce procrastination.

The importance of timekeeping tools and systems

Timekeeping, as useful as it is for organizations and individuals, can be difficult. It’s not uncommon for people to put off filling out timesheets until the last minute, complaining that it’s simply another task that complicates their lives.

As a result, it’s critical to establish a reliable procedure: Reduced time and effort spent on timekeeping translates to more accurate findings and greater value of the data gathered. This is where special tools come in handy: they allow you to automate and speed up your timekeeping while avoiding the delays and inaccuracies that come with manual effort.

Time tracking systems and applications range from paper-based solutions, with employees manually entering hours worked into a dedicated timesheet template, to fully automated online timekeeping services. Whatever option you choose for your organization, it should be easy to use across different departments and allow you to track expenses and other data relevant to your business in addition to work activity.

Final thoughts on timekeeping

We live in a time when accurate and quantifiable data is king. Successful businesses require metrics, information, and statistics to help understand how they can better spend their money or make decisions about what’s best for the company. Timekeeping provides this type of valuable information that employers need to run their businesses more productively while also providing employees with fair wages based on hours worked. If you don’t already have an effective timekeeping system in place, now’s the perfect time to implement one.


Top Factors Why Your Business Needs to Hire The Payroll Company for HR Consulting

June 9, 2021 Kevin Kenealy Uncategorized Comments Off on Top Factors Why Your Business Needs to Hire The Payroll Company for HR Consulting
Top Factors Why Your Business Needs to Hire The Payroll Company for HR Consulting

It is just as vital to look after your employees as it is to look after your customers, and Human Resources (HR) plays a major role in this aspect of running your Albuquerque business.  They are the department in charge of employee relations and keeping them in sync with the company’s protocols and goals.

Any firm needs a competent, skilled, and experienced HR department, but hiring an HR consultant, such as The Payroll Company in Albuquerque, is also an efficient solution to helping a company’ HR department along the way.

Knowing that the job is being done by a professional takes away some of the stress associated with HR. Additionally, there are numerous benefits to retaining an HR consultant. Let us look at some of these benefits to determine if it is a viable option for your business.

Managing the Recruitment Process

An HR consultant’s primary responsibility is to assist with the recruitment process. In addition, they can help oversee finding qualified candidates for the roles that your business requires.

As human resource experts, they understand that the hiring process is both pricey and demanding. However, they also understand that this is a vital investment because the employees they hire are both the face of the company and the backbone supporting it. 

Employee performance has a significant impact on the company’s future growth. HR consultants will screen candidates through time-consuming assessments to ensure they meet the company’s needs. They will look at an individual’s work history, qualifications in various fields, and even their character and demeanor to see if they will be a suitable fit for the job.

Maintaining Corporate Compliance

HR consultants, like The Payroll Company in Albuquerque, NM, will ensure that your organization complies with all applicable labor laws. In addition, they stay up to date on employment law and observe it to avoid legal problems.

Instead of putting the responsibility of balancing multiple regulations for different staff members spread across the globe on your in-house HR department, it might be better to hire someone who is already be professionally equipped to manage the legislation and your staff from that country. It will alleviate your concerns greatly knowing that your HR consultant is well-versed in employment regulations and can look after your team and company.

Providing Expert Advice

HR consultants are there to help you hire and manage your employees and advise you on the improvements your company needs to make to be successful in the future. In addition, they will provide insight into what processes in the business need to be improved and how this will influence everyone who works there to interact and resolve human resource issues.

They could offer guidance on topics such as training programs, how to provide an exceptional work culture, awards and accolades, and other ideas that could improve employee relations and your professional brand.

Keep in mind that they often provide competent counsel since they have experience with other businesses and recognize potential in yours that you may realize via process improvements. In addition, because they can share what they have learned from their previous successes with other companies, an HR consultant for your business is a wise investment, as they may provide a fresh viewpoint on how to run your company.

Improving Employee Relations

The length of time someone stays with a company is an important metric for any HR department. Most of the employees who leave do so within the first year, which means you must find out what’s driving them away and start making improvements as soon as possible to keep them around.

An HR consultant will look at the company culture from your employees’ perspective and determine what is missing to keep them interested in their roles. They will also see if any other areas need improvement related to employee relations, such as job satisfaction, compensation packages, or work-life balance.

Training and Staff Development

Creating and arranging training sessions is another area where an HR expert may assist you. As we all know, when a new employee is hired, training is critical. It is a crucial step in helping them understand more about their role and the company’s principles and policies. This will also assist them in developing their potential and improving their abilities, which will come in handy when they start their position.

However, training is not only for new hires; it is also beneficial to the company’s long-serving staff. Employees that have been with your firm for a long time may require new skills and knowledge to perform better in your growing organization. It could also be used to examine existing processes, particularly if the team’s or individual’s performance is not up to your standards.

HR experts will also help you plan training sessions that will not waste time for your staff or the business. They will consider why they are holding this session, along with whom it involves, and what learning goals need to be accomplished. They will also figure out its purpose before devising ways to implement it into the organization’s activities.

Managing Performance

HR consultants can assist with performance appraisals. They can design the best appraisal method for you and your staff.

Having a performance management system communicates that your organization appreciates all of your employees’ contributions. This system encourages employees to work harder in turn. 

Employees can be evaluated based on their overall performance using performance management, which allows you to see who qualifies for promotion and who needs improving to meet their goals.

Final Thoughts on HR Consulting

Hiring an HR consultant in Albuquerque, such as The Payroll Company, is an excellent method to deal with your human resources issues. They are experts in this field, and you can rely on them to provide outstanding results.

They could be highly beneficial in various situations, including hiring new staff, planning, and implementing training, and performance management. They will also ensure that your business complies with all applicable labor legislation and requirements.

HR Consultants may also assist your company with improvements and further development, particularly if you are still a small business attempting to catch up with the competition in your field. If you are interested in the services of an HR consultant for your Albuquerque company, you should consider reaching out to The Payroll Company to learn more about their services.


Employer Payroll Tax Problem Strategic Guide

August 10, 2019 Kevin Kenealy Uncategorized Comments Off on Employer Payroll Tax Problem Strategic Guide
Employer Payroll Tax Strategic Guide - The Payroll Company 505-944-0105

Employers are obligated to pay payroll taxes on behalf of each of their employees. Many find it difficult to keep up with this task, and the various deductions. It is vital to understand your payroll tax requirements as failure to comply can result in penalties, interest and possibly prison time for non-payment. The following is a list of the most common employee withholdings:

  • Federal income taxes (FICA)
  • State income taxes
  • Matching portion of Social Security taxes (SSI)
  • Matching portion of Medicare taxes
  • Federal unemployment tax (FUTA)
  • State unemployment tax
  • State workers’ compensation
  • Railroad retirement taxes (industry specific)

Payroll Tax Problems Employers May Face

Employment taxes can differ each pay period depending on the type of tax and wages paid. It is the employers duty to deduct the proper amount of taxes from each employees paycheck, including their own contributions, and send all essential tax deductions to the correct government agency on time. There are also quarterly and annual taxes that must be paid. The laws in regards to payroll taxes and deductions are strict and it is extremely important to have an experienced person handle your company accounting and taxes.

Sometimes employers encounter problems when they:

  • Miscalculate the amount of tax due from employees
  • Miscalculate the matching contribution owed by the employer
  • Misunderstand the tax code and their obligation to pay
  • Delay remittance of mandatory taxes
  • Misclassify an employee as an independent contractor

Trust Fund Recovery Penalty

Payroll taxes are labled “trust” taxes, meaning the employee’s deductions are held in trust by the employer until the taxes are due. The IRS and state agencies require all funds to be submitted correctly and on time, and can issue severe penalties when you fail to meet this commitment. The IRS imposes a Trust Fund Recovery Penalty (TFRP) when unable to collect unpaid trust fund taxes from employers even if the business is no longer in operation.

The IRS may assess a TFRP against anyone who:

  • Is responsible for collecting and paying withheld income and employment taxes
  • Willfully fails to collect taxes
  • Willfully fails to pay taxes

Willfulness, as defined by the IRS, is when a “responsible” person:

  • Must have been, or should have been, aware of the outstanding taxes; and
  • Either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).

Using funds to pay other creditors when the business is unable to pay employment taxes indicates willfulness.

What is a “responsible person” in the view of the IRS?

 “a person or group of people with the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.” This person may be:

  • An officer or an employee of a corporation;
  • A member or employee of a partnership;
  • A corporate director or shareholder;
  • A member of a board of trustees of a nonprofit organization;
  • Another person with authority and control over funds to direct their disbursement; or
  • Another corporation or third-party payer.

Employees who pay bills or who handle accounts payables for a company are not the “responsible person” under the auspices of the IRS if they pay bills through instruction from the owner, manager or supervisor as opposed to deciding on the bills that are to be paid. 

For companies overwhelmed in meeting their monthly or weekly employment taxes it is critical and wise to address the problem directly and immediately before getting IRS mail notices or worse yet, before the IRS shows up at the business. 


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