Stop backdating time sheets and guesstimating employee hours to meet payroll deadlines – get an electronic solution

October 3rd, 2013

When I got this inquiry more than 10 years ago I was taken aback by the pain and agony the payroll person was going through every week…..let me take you back for a moment.

I took the call and we started discussing the current process which included the need to collect time sheets before the pay period was over to give sufficient time to complete payroll before sending the information off to the bank.

The pay period was Thursday to Wednesday, due to the time it took for payroll to complete the payroll process they needed all the time sheets in on Wednesday morning. Getting the time sheets in on Wednesday morning meant an estimation had to be made for the finish time on Wednesday, now you could think no problem the guys normally finish at 3.30pm each day so we will just put 3.30pm on the time sheet.

So what happens as soon as the guys finish earlier or later on the day than the estimation placed on the time sheet? No impact on the workers, no impact on management but massive impact on payroll. 1 of 2 things will occur when the finish time is less or more than the estimated finish time on the time sheets.

Problem 1 – employees have been underpaid as they actually worked past the estimated finish time
Problem 2 – this is the worst of the two issues – employees actually finish early on the day and are overpaid.

Overpaying employees creates a number of issues, the main issue being employees are paid wages that they are not entitled to and you will need to ask for the money back in next weeks pay run. I have heard many of these stories where Saturday is estimated, employees get overpaid, spend the money and then struggle the following week with less money after paying back the over payment.

The biggest of all issues with this manual employee time calculation is the impact on time that it causes on payroll. Groundhog day is a great way to explain some payroll experiences I have listened to as I hear stories that every week before we start payroll we need to fix all the adjustments from last weeks payroll, you really do have to ask your self, dont you have better things to do today than fix last weeks adjustments before you start your payroll every week due to your manual payroll system.

Moving on and what created me to write about this story from 10 years ago is a conversation with a payroll lady yesterday that went something like this……and last week my boss really hit the roof and that is why I have contacted you. We estimated the hours the boys would work on Saturday like we always do every week and then we paid them Friday. After consultation with the supervisors it was agreed Saturday would be an 11 hour day.

On Monday when I came in I discovered the guys had worked 2 hours, we had overpaid 45 employees 9 hours that included overtime, my boss was screaming.

If you have a situation like this in your business give us a call on 1300 800 077 and discuss how we can assist you get your payroll in order where you can complete payroll within a couple of hours on payday and stop guesstimating how many hours your staff will work each week – it is time to go electronic!

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Peter Morrissey has been working with employee time and attendance for more than 15 years, Peter has supplied more than 3000 customers around the world with employee time management systems. He has seen the good, the bad and the ugly. Peter bought the JobClock system into Australia in 2008 to fill a void not being covered at the time. As cloud technology has come along the JobClock system not only services construction but many more industries hungry for employee labour costing information.

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