Timekeeping in the Workplace Explained

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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

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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

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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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