Payroll processes have changed over the years but the responsibilities related to the accuracy of these processes should not be understated. Companies must ensure they are in compliance with all rules and regulations, and required official procedures that cover everything from employee benefits to state and federal taxes. It’s not surprising that businesses of all sizes are looking for solutions that will simplify these processes and help them remain in compliance.
Eliminate Buddy Punching
Wage and hour violations can be extremely costly to businesses, yet older time and attendance systems do little to help prevent these problems. Moreover, with older timekeeping solutions, actions like “buddy punching” allow workers to be paid for time they’re not actually working. According to The American Payroll Association, “over 75% of companies lose money due to buddy punching.”
The mechanical time clocks of yesterday have given way to sophisticated, innovative time and attendance software. Today’s systems may use smartphones to capture time, and they may include features like GPS location tracking, biometric touch screens, and magnetic swipe cards. With electronic time and attendance systems, human error is minimized, so businesses can be confident their payroll is accurate every time.
Companies can eliminate buddy punching with the use of biometric timekeeping systems that integrate with time and attendance software. This solution is ideal for companies that outsource payroll administration to professional employer organizations. The time and attendance software can automatically send information to the PEO company.
Meeting Legal Requirements
To remain in compliance, company payroll processes must meet legal requirements related to employee benefits as well as workers’ comp claims. The Affordable Care Act has added new complexities to an already complicated process. Besides accurately calculating employee wages, employee benefits must be deducted, vacation and sick time must be managed, and payroll taxes need to be withheld. The processes can be time-consuming and convoluted. Payroll service companies can relieve businesses of stress and worries about meeting legal requirements. Issues related to IRS penalties and state taxes can be avoided.
Review Payroll Anywhere
Not so long ago, processing payroll often required faxing, emailing or even making calls to the payroll service company. But now payroll can be processed via the Internet, and because the services are in the cloud there is little need for on-site hardware. Online payroll makes it possible to access and review processes conveniently, even when away from the business.
Online payroll offers many advantages. For instance, payroll processes can be integrated with smartphones and other mobile devices. GPS tracking can also be integrated, which can help in determining who is where. This is especially beneficial for companies with more than one location and for those with a mobile workforce.
Biometric touch screens, which recognize fingerprints, can automatically send collected information to the payroll company. This adds to efficiency and helps ensure accurate timekeeping while also limiting time theft or wage violation practices.
Is a PEO or Payroll Company Right For Your Business?
Even small businesses may have complicated payroll systems. Partnering with Professional Employer Organizations (PEOs) to handle payroll and other HR functions can simplify the processes and minimize human error. In addition, outsourcing payroll can save time and money, while also providing peace of mind.
SourceOne Partners represents PEO brokers and offers customized PEO solutions for each client’s specific needs, including payroll outsourcing and workers’ compensation insurance. SourceOne Partners shops both the PEO and traditional market and provides cost-benefit analyses to assist clients in making informed decisions about PEO companies, payroll outsourcing, workers’ compensation, and other employee benefit administration.