Your Business Needs an Employee Timekeeping System – Here’s Why

The regulations governing minimum wage apply to every single employer. Compliance is not always straightforward, but tracking the time worked by employees does not have to be. Compliance with regulations on the minimum wage is made easier by timekeeping systems for employees. In addition, every other legislation. These include the Fair Labor Standards Act, food and rest breaks, overtime pay, the Affordable Care Act, and child labor.

What exactly is meant by the term “employee timekeeping system”?

A form of software used in businesses is known as an employee timekeeping system. It maintains an accurate record of the time each employee has spent working. This accounts for break times, total hours worked, punch times, and overtime. It processes the payroll by carrying out all of the relevant computations. The hours worked by employees are brought into the payroll system through this process.

A timekeeping system for employees could sync with a physical time clock. The clock is used for employees punching in. The information is transmitted to the program from the clock. Certain systems just require a web login. Most systems are compatible with a wide range of time clocks, including those requiring a PIN entry, proximity card, or biometric. Timecards can be generated using the program. It computes the accumulated vacation time. It monitors the status of the employees.

Accurate tracking is very necessary to achieve compliance. And there is a lot that must be monitored.

The essentials are as follows:

• Employee information profile (name, age, address, etc.)
• Job position (job title or tasks performed)
• Employment status (exempt, non-exempt, temporary, etc.)
• Classification of the Worker (employee, independent contractor, seasonal, union)
• Work Time spent by employees (per shift, day, and week)
• Amount of extra time that was put in
• Pauses as well as meals (paid and unpaid)
• Timetables for each day and each week of employment
• Accumulation of vacation and sick time
• Wages included on the payroll
• Takings out of wages and salaries
• Earned gratuities

This list is not intended to be comprehensive. There is legislation at the state level, requirements at the industry level, and union contracts. There is a possibility that you may need to keep track of additional information for them.

Why Am I More Vulnerable When I Use Manual Procedures for Keeping Track of Time?

When it comes to tracking, you have the option of using both spreadsheets and paper forms. This is something that a lot of individuals do. On the other hand, errors are quite simple to commit. Particularly when you are juggling many tasks at the same time. Owners of businesses are incredibly skilled multitaskers. But at some point, you reach your limit of capability. Inadvertently, you remove one of the cells from a spreadsheet. You have made a mistake in the addition.

Additionally, there are other parties engaged. These individuals do not have nearly as much riding on the outcome. It seems that one of the workers forgot to punch in. Management misplaces a timecard.

Every one of these elementary blunders has the potential to lead to a violation. The cost of the fines has increased by three in only the previous two years.

It is pointless to comply with regulations if the time and attendance system you use does not collect reliable information. The cornerstone of compliance is the maintenance of accurate records.

A timekeeping system for employees makes compliance a lot simpler and more manageable.

To get information on how The Payroll Company’s Time Keeping Service might assist you in avoiding wage and hour violations, give the company a call at 505-944-0105.