As your business grows, it can be difficult to figure out exactly how much you owe your employees and contractors at the end of the week, month, or year. To ensure that they get paid what they’re owed and that taxes are calculated correctly, you need to use both time tracking and payroll integration software together in your small business payroll system.
These two elements work together to help you more accurately calculate and pay your employees while also providing them with some important benefits on their own. Let’s take a look at how each of these pieces works and why they’re so important to your business’s success.
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 your team tasks, keep tabs on their progress (without micromanaging) and ensure that they are getting paid for their work. If you don’t track your team’s time, or choose a subpar solution, there is a huge risk of underpaying your staff.
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This can lead to employee resentment and may even affect performance levels. Time tracking should be at least one part of every business’ HR strategy! And it should be implemented from day one because if you wait until after you hire people it can become a lot more difficult.
Why payrolling can be challenging
In a nutshell, payroll is a process for issuing payments to employees. You’re going to have a lot of information related to your company that will have direct implications on how you manage payroll. Some of these considerations include: taxes, benefits, sick days, overtime pay and taxes, severance packages, and taxes and those are just some of them! Now imagine trying to remember all of these different aspects as you handle an employee’s paycheck.
If you think it sounds stressful now… Well…just wait! The best way you can relieve stress from payrolling is by using cloud-based payroll software. However, there are still other things that need your attention even when outsourcing payroll services.
What you need from time tracking software
In order for payroll software or any other payroll-related system to do its job effectively, it needs a lot of information from you. That 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 may seem a bit intimidating at first but once you get in a routine it becomes much easier. Time tracking is a vital part of having a successful payroll process. It allows you to see exactly how much time your employees have been working so that when paychecks are handed out you can be sure they have been fairly calculated based on each individual’s number of hours worked.
How payroll integration helps your business
If you’re thinking about how time tracking integration can help your business, you’re probably wondering how it will affect your day-to-day tasks. A great thing about integrated payroll services is that they are easy to use and most importantly, easy to set up. By implementing these services, you can avoid manually inputting information into both your payroll system and your project management software. We’ve got more information on integrating these types of systems here: Project Management Tips for Streamlining Your Business.
How payroll integration with time tracking software helps your business
The goal of almost every business is to increase its efficiency, save time, and gain valuable insights. While you’re 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 anywhere they have access to a computer or mobile device. The information is seamlessly integrated into your payroll solution. And since all data comes in real-time, there’s no waiting around until payday for you or your employees – everyone gets paid faster! It’s a win-win situation that reduces human error while increasing transparency between you and your workers.