Processing payroll is a multi-step process. You must calculate the total time worked for each employee, figure gross pay then calculate deductions and payroll taxes and subtract them from gross pay. A lot can go wrong during any of these steps, especially if you’re still using paper time cards, and the consequences can be severe.
Consequences of Payroll Mistakes
Payroll mistakes are more than just frustrating. Mistakes can have dire consequences for your business.
- Fines. Government regulations like the Fair Labor Standards Act (FLSA) require precise record-keeping to track hours to prove compliance. Failure to pay overtime can lead to hefty fines by the Department of Labor.
- Turnover. When paychecks are repeatedly late or wrong, workers can quickly get frustrated. That frustration just might push them towards finding a different job – and it wouldn’t be too hard to succeed in that effort. There are currently millions more job openings than workers to fill them.
5 Reasons to Replace Paper Time Cards
Using a digital time tracking system can eliminate many of the mistakes that lead to fines and turnover plus they make the entire process more efficient.
No more tracking down time sheets.
Paper time sheets have a huge disadvantage in that they must be physically moved from location to location. Once a paper time card is filled out on the jobsite, it needs to be moved to the accounting office and, let’s face it, anything can happen in between. Cards can be left behind, damaged or lost.
On the other hand, a mobile time tracking app lets your employees clock in and out from the jobsite and the data is automatically uploaded to your payroll software. Time sheets are never damaged, lost or late.
No more deciphering illegible handwriting.
Inputting hours by hand can be a mess. Between dirty jobsites and sloppy handwriting, it can be impossible to decipher numbers. Sevens could be ones and eights might be zeros, which could lead to an inaccurate check. Fixing mistakes not only takes time but if you haven’t correctly calculated due overtime, you might face a hefty fine by the DOL under the FLSA.
Human error is eliminated with a mobile time tracking app. Numbers are never transposed so accurate data is also transferred to payroll. Compliance features ensure workers sign off on each time card so overtime hours are always accounted for.
No more buying paper.
Paper is not only an extra cost, but it may be hard to get when you need it most. Paper is another material that is being affected by supply chain shortages. Publishers Weekly stated that paper shortages will continue throughout 2022 and possibly beyond. If you rely on paper time cards to track employee hours, they may not always be available, slowing down your payroll process and frustrating workers.
A mobile app can help you get ahead of paper shortages by replacing paper time cards. You’ll be also to reduce your construction company’s reliance on paper while making the entire process more efficient and secure.
No more wasting time on payroll.
According to the 2021 Construction Business Report, 32% of construction companies say manual processes are where their businesses experience the most inefficiencies, and payroll is one of those processes. You must convert hours and minutes to decimals and add up taxes, deductions and make sure everything is correct. Using a mobile time tracking app that integrates with your payroll process can save your team hours of calculations. Information is automatically shared between systems, exporting attendance records in seconds, ensuring paychecks are accurate and on time every week.
No more time theft.
Paper time cards leave you wide open to time theft. Time theft in terms of Buddy Punching, where an employee has a co-worker clock them in or out when they’re not at work, can quickly add up, bloating your labor costs. Consider how much an extra 15 minutes two or three days a week can add up.
Digital time tracking solutions eliminate buddy punching using face front photo identification. Only your employee can log in for him or herself. Plus, with GPS and geofencing capabilities, you can see exactly where your employees are clocking in from, which helps track manhours per job site and eliminates time theft. A geofence sets up a virtual barrier that can enforce certain restrictions or create certain opportunities. When employees clock in or out, their timestamp will be flagged as either on-site or off-site. GPS location tracking can create ‘bread-crumbs’ that track worker movements throughout their shift. The tracking stops the moment the worker clocks out.
Replace your paper time cards with a mobile app like ExakTime and eliminate the biggest obstacles to processing payroll. Your company will be more secure and your employees will be happier.