As technology continues to advance, companies have more and more options when it comes to running their payroll system. Manual processes are quickly becoming a thing of the past; cloud-based payroll software, on the other hand, continues to grow, thanks to the combination of efficiency, benefits, and convenience it provides. Payroll software is especially helpful when it comes to time-tracking since many complete payroll solutions like UZIO have Time & Attendance features built-in. If you’re not already using cloud-based software to manage your payroll, you probably should be: here’s why!
Automated Time Tracking
Unlike manually tracked time cards, which are prone to human error, payroll software uses virtual clock in/outs to keep an accurate record of employee hours. The software automatically adds up hours as the pay period goes on, calculating taxes and other necessary deductions along the way to produce an accurate, tax-compliant paycheck come payday. This type of payroll system is especially effective for companies with multiple employees since far less time needs to be dedicated to processing employee time & attendance. The system keeps a log of all employee records, making them easy to access if needed for future reference.
For companies that use a manual approach to managing their payroll system, each payday is a source of stress for the HR & payroll department. Especially in larger companies, staff can easily get overwhelmed by the number of calculations required to produce accurate paychecks for each employee. Adding up the hours is only part of the issues; after an employee’s hours have been calculated, staff must manually apply all necessary pre-tax deductions such as health insurance and life insurance. After those deductions have been taken out, staff must calculate the federal, state, and local taxes. If applicable, additional deductions such as retirement plan contributions or wage garnishments must be computed as well. This isn’t an issue for companies that use payroll software, since the software will automatically apply the relevant deductions for each paycheck.
Efficient Employee Management
Since a cloud-based payroll system keeps records of all employee’s time cards, the information can easily be used to help with future scheduling. Having all of this information in one place makes it easy for managers and upper-level staff to make informed scheduling decisions by using digital time-cards and comparing them to individual employee productivity. It also assists in making pay raise or promotion decisions, since managers can easily track individual performance over time.
Unfortunately, most companies will have to deal with time card fraud at one time or another. Physical time cards are especially easy to manipulate since employees can simply write down the times that they wish to be paid for. As long as they aren’t extremely obvious, they can usually continue this charade for quite some time, costing your company hundreds (if not thousands) of dollars in undeserved distributions before being discovered. To prevent this, many companies find digital time card tracking to be a superior alternative, but sadly, basic digital time tracking is also vulnerable to time card fraud.
Although time card machines prevent employees from simply writing down whatever hours they choose, they don’t prevent fraud entirely, since workers can have other employees clock in/out on their behalf. Fortunately, switching to cloud-based payroll software for your time tracking needs can eliminate most cases of time card fraud. This is especially true with advanced systems like UZIO, which use geotracking, a technology that records an employee’s locations as well as their time to the virtual time card. This discourages time card fraud since employees will quickly be discovered and promptly dismissed.
As you can see, there are many advantages of using cloud-based payroll software to track employee time and attendance. From simplicity and efficiency to scheduling benefits and fraud prevention, most companies (especially those with multiple employees) will find making the switch to a digital payroll system beneficial. While it is unrealistic to expect any payroll solution to be able to completely alleviate all the complications involved with the payroll process, there is no doubt that cloud-based software gives companies their best chance at success, and—as technology advances—one can only expect this software to become more effective and efficient moving forward.
Considering payroll software for your business but not quite sure where to start? Find out how a cloud-based payroll system can give your business the boost it needs to succeed by enjoying a 30-day trial of UZIO, free of charge, by clicking here!