Preventing Employer Wage Theft: Improving Time Entry and Time Collection for Payroll

As cold temps blow over the Northern Hemisphere, we can’t help but recall the hot news this past summer: employer wage theft. The New York Times reported on it, as did The Los Angeles Times, and Forbes.

There are two perceptions at play. The first is that wage theft only happens to blue-collar workers. The other is that employers intentionally withhold pay. Both of these absolutes are false.

The more complex truth is that employer wage theft can affect any employee of any skillset. And, an outdated time and attendance process is usually the culprit behind incorrect pay.

Take, for example, the dreaded paper timesheet. (We have reported on this many times.)

Business happens at the speed of light these days. Yet in all types of companies –– big and small, manufacturing and professional services –– employees fumble to keep their paper timesheets updated. Shift supervisors spend large chunks of their time playing detective to confirm the hours logged. All the while, the payroll manager is at a standstill for payroll projections and tax reporting.

At no step in this process is anyone adding any value to the bottom line. On the other hand, a real-time time and attendance system can advance a business beyond the mundane time entry and time collection.

Based in the cloud, a time and attendance system logs hours in real time (right down to the second). Clocking in/out can be done at an onsite time clock or remotely with a telephone or mobile device. This real-time reporting significantly improves the front end of time and attendance entry.

As a result, the back-end systems are better supported with quality information.

An advanced time and attendance system collects employee hours in real time. From there, you can assign the steps in which the information is reported.

For example, you may require employees to review and confirm their hours. Then the electronic time collection goes to the supervisor for approval and on to payroll.

This automatic and seamless process creates an airtight seal around the information. The time entry and time collection is easily viewed and all steps along the way –– from workday to payday –– are transparent and recorded.

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