An automated time and attendance system eliminates the time clock and instead uses a bar code scanner, pin number pad, or an even more technologically advanced system such as a biometric scanner. When using a bar code scanner, employees have I.D. cards and swipe the card. A pin number pad allows employees to enter their individually assigned pin number as identification. A biometric scanner works by scanning an employee’s finger, hand, or eye; the device immediately identifies them. Any of these three methods connect the identification device to a computer that in turn sends the work-hours information to a database interfacing with a software payroll program.
An automated system tabulates work times immediately, accurately, and in a matter of seconds. The system eliminates the cumulative hours spent by employees and managers collecting time cards, figuring out hours, and filling in time sheets. It reduces company costs spent on paper punch cards. Company executives can instantly generate reports about absenteeism or lateness, analyze overtime, and create schedules that best utilize employee work time, thereby increasing productivity. Time and attendance systems integrated with payroll systems to supply accurate employee-hours information seamlessly, without the human error factor that runs up costs.
Eliminate employee time theft
A common practice when using manual time cards is to round off figures. With extra minutes here and there as employees punch in and out for breaks and lunch, supervisors may decide to subtract or add a few minutes to make calculations easier and arrive at whole figures. A 23 minute break may be reported as a 20 minute break, which also keeps the employee and supervisor out of trouble for a slightly overlong break. However, over time this practice can add up to a difference of thousands of extra payroll dollars, a tremendous expense for an employer.
• Using an automated time and attendance system;
• Whenever possible, reducing the use of checks and substituting direct deposit or pay cards, as checks are more commonly subject to fraud;
• Running thorough background checks (criminal, credit, alias searches, previous employment, education credentials, Social Security verification, etc.) before hiring payroll specialists;
• Securing access to payroll information by requiring computer login, minimizing the number of employees with login access, and requiring secure storage and/or shredding of printed documents;
• Setting up an Automated Clearing House (ACH) filter with the bank for electronic payments, which allows banks to monitor vendor debits.
If you are using a manual time and attendance system, consider replacing it with an automated system and using an experienced and reputable outside payroll service.