As your business grows, it can be difficult to determine exactly how much you owe your employees and contractors at the end of the week, month, or year. To make sure that they are paid what they are owed and that taxes are calculated correctly, you should use both time tracking and payroll integration software in your small business payroll system.
These two elements work together to help you calculate and compensate your employees more accurately, while also providing them with significant benefits on their own. Let’s take a look at how each of these elements work and why they are so important to the success of your business.
Why time tracking is important
Time tracking is very important for businesses with employees or independent contractors. Using effective time tracking software will allow you to assign tasks to your team, keep tabs on their progress (without micromanaging), and make sure they get paid for their work. If you are not keeping up with your team’s time or choosing a below average solution, there is a huge risk of underpaying your staff.
This can lead to employee resentment and can even affect performance levels. Time tracking should be at least a part of every company’s HR strategy! And it should be implemented from day one, because if you wait until you hire people it can get much more difficult.
Why Payroll Can Be Difficult
In a nutshell, payroll is a process of issuing payments to employees. You are going to have a lot of information related to your business that will have direct implications for the way you manage payroll. Some of these considerations include: taxes, benefits, sick days, overtime and taxes, severance pay and taxes and these are just a few of them! Now imagine trying to remember all of these different aspects when dealing with an employee’s paycheck.
If you think this sounds stressful nowâ¦ wellâ¦ wait! The best way to relieve payroll stress is to use cloud-based payroll software. However, there are still other things that require your attention even when outsourcing payroll services.
What you need time tracking software
In order to Payroll Software or any other payroll related system to do its job efficiently, it needs a lot of information from you. This includes employee names, social security numbers, addresses, hourly wages for each employee, weekly hours worked by each employee, and deductions. This level of information gathering can seem a little intimidating at first, but once you get into a routine it gets a lot easier. Time tracking is an essential part of a successful payroll process. It allows you to see exactly how long your employees have been working so that when the paychecks are handed over, you can be sure that they have been calculated fairly based on the number of hours each individual worked.
How payroll integration helps your business
If you’re thinking about how integrating time tracking can help your business, you’re probably wondering how it will affect your day-to-day tasks. One of the advantages of integrated payroll services is that they are easy to use and, most importantly, easy to set up. By implementing these services, you avoid having to manually enter information into both your payroll system and your project management software. We have more information on integrating these types of systems here: Project Management Tips to Streamline Your Business.
How integrating payroll with time tracking software helps your business
The goal of almost all businesses is to increase efficiency, save time and gain valuable information. While you are obviously concerned with making money, your employees are more concerned with spending it. Time tracking software makes it easy for employees to track their time from any location they have access to a computer or mobile device. The information is seamlessly integrated into your payroll solution. And since all data arrives in real time, there’s no waiting until payday for you or your employees – everyone gets paid faster! It’s a win-win situation that reduces human errors while increasing transparency between you and your employees.