Automated Payroll and Timekeeping Systems – Is It Worth the Cost?

geeky-guy-at-computer-200x300Are you shocked when you see how much your payroll is costing you? Payroll is typically an employer’s number one expense. Wasted money in payroll is one of the biggest obstacles facing an employer who is poised for growth.

An employer can’t be everywhere, all the time. Monitoring employee hours can be easily automated and is modestly priced as most systems are typically scalable, after the initial equipment purchase and set up, you pay per user of the system on a monthly billable basis.

The system cost is often offset by savings due to increased accuracy. Payroll errors are costly in many ways. For example, an employee who is “fudging” their time card by even a few minutes does more than cost the employer more money in direct pay, it also affects the amount of accrual time that qualifies an employee for benefits.

Did you know that just 15 employees clocking in an additional 4 minutes a day can add up to 1380 minutes (23) hours of additional pay per month!

Automated payroll systems can offer an employer many advantages:

  • Enforce good employee habits. Have a policy and be prepared to enforce it with employees clock in and out at their required start, break, lunch and clock out times-eliminating those overages because even a few minutes over the course of a year can add up to hundreds of dollars.
  • Use a mobile system for remote employees to log their location through GPS. This allows an employer to see if the employee is actually at the location they claim to be. Not only does this eliminate the employee deceiving their supervisor about being on a job site, it also alleviates the employer responsibility should anything happen accidentally to that employee when they should not have been on the clock.
  • Lock employees out of the timeclock for non-clock times. Automated timekeeping often has the capability of locking out punch in and out times for employers who need to lock down early punch in and late punch out.
  • Biometric technology can use hand print, fingerprint and retina recognition software to verify an employee is actually onsite. This prevents the dreaded “buddy punching” system.

Often times, an employer will need to use a combination of these systems to bring their payroll into compliance. Timekeeping can do more than just keep their employee hours accurate. With a compatible payroll enterprise system, employers can enjoy having a team of outsourced experts process their payroll. Payroll agencies will file all taxes, pay insurance premiums and deductions, and contribute to employee-chosen investments and optional health care coverage, as well as managing garnishments. It’s well-worth an employer’s time to check in to these options, and shop around. Some agencies offer free payroll processing in exchange for purchase of other services. Some agencies offer deep discounts on their payroll if an employer bundles HR, Workers’ Comp, Benefits Administration, or Risk and Safety Management.  For more information on these with OmegaComp HR, contact one of our Business Consultants today.  Call  toll free: 888-540-0752 or email omega@omegacomp.com