All You Need to Know About Time Tracking and Payroll Integration

Time tracking and payroll integration might seem like two separate things at first, but that’s not the case. You need time tracking software to manage the hours your employees work, then you need to integrate that data with your payroll system of choice so you can pay your employees accurately. If you think about it, though, this makes sense – if you don’t know how many hours an employee has worked, you can’t pay them accurately. It’s hard to see how these two processes could be disentangled once you think about it in this way.

1. Why Do Businesses Track Employees’ Time?

Employees can sometimes work outside of regular office hours. While there are a number of benefits from tracking employee time, it also comes with legal requirements. In order to maximize efficiency as well as minimize their risk of running afoul of employment laws, many employers decide to track employees’ time for payroll purposes. For example, by law, non-exempt employees must be paid overtime wages if they work more than 40 hours per week or a certain number of hours per day. Employers who fail to properly track their employees’ time risk being sued for unpaid wages or other types of claims related to wage and hour violations.

2. How to Track Employees’ Time?

First of all, you must have a payroll program that will allow you to track employees’ hours. The timekeeping module of your payroll software will keep records of what time an employee starts working, stops working, takes breaks and how much they work on average per day/week/month. In addition, there is a note field for additional information on whatever needs to be recorded as part of an employee’s timekeeping. For example, if an employee leaves work sick but still gets paid for some hours worked that day, those details can be stored in their pay record as a note. Some payroll software programs even allow notes regarding attendance or shifts worked or clocked-in by employees.

3. Pros and Cons of Manual Timesheets vs. Automatic Timesheets

Both manual timesheets and automatic time tracking are great for payroll purposes. Manual timesheets are useful if you have an employee who is not computer-savvy, but on the other hand, it can be a pain to make sure they filled out their timesheet correctly. Automatic time tracking keeps things simple – provide your employees don’t disable it – but sometimes your team members forget to sign into their accounts or clock in before starting work. And then there’s that whole security thing with automatic time tracking… If you want simple, then automatic might be for you; if not, just go old school with paper timesheets.

4. What Happens When Manual Timesheets are Transferred into Some Payroll System?

Payroll systems are designed to produce reports, usually at regular time intervals. For most payroll systems, these reports are intended for internal use only—it’s not intended that people will produce their own analytics with them. So when you set up a payroll system, you also have to transfer in all your manual timesheets into it. This is why most payroll systems include a mechanism for uploading or transferring in timesheets. The process of moving in manually-entered timesheets is rarely seamless, however. If it was easy, no one would outsource payroll! This is why there are typically quite a few problems associated with transitioning over from manual timesheets into some sort of automated system for managing employee time tracking.

5)Benefits of integrating payroll software and Time tracking Tracking your time is important for two reasons: For one, if you need to bill out at an hourly rate or by project, it’s essential that you know what hours actually went into each project (or task). This way, you’ll be able to accurately track your time for billing purposes. A second reason is that tracking time helps ensure that projects are completed on schedule. This helps clients feel confident about deadlines, which helps them continue using your services. A third reason might seem obvious but bears repeating: It allows you to document every minute of work done on behalf of a client. That can come in handy when it comes time for proposals or contracts renewal—which also means it can help set parameters for billing moving forward.