adminMonitoring Payroll costs is an important concern for any business or industry. The small and medium sized businesses are already impacted with the increasing payroll costs that include both the regular pay as well as the overtime pay. Apart from increased payroll costs, even errors or employee rights violation are of great concern as employers face the prospect of monetary penalization from the state and federal entities like Department of Labor. The web based solution ensures proper documentation of the work time and also aids in paying exact amount of wages to the employee. This documentation is even audited to maintain compliance with federal and the state regulations. Therefore it is high time that employers get updated and should switch over to the web based time tracking software as it not only streamlines and makes the system hassle free, but also because the chances of human errors are zeroed.
After effects of Incorrect Payroll
With the passing time, employers have realized and experienced the dire consequences of noncompliance. Many have realized the importance of paying employees according to the Fair Labor Standard Act’s minimum wage and overtime regulations, failing in which may create problems. Studies made in this regard reveal that in the year 2012 alone; more than 40 percent cases of wage and hour settled were involved in incorrect or improper overtime pay by employers and out of $467 million claims, approximately $186 million were related to overtime pay violations.
The problems related to improper or incorrect payroll is not just limited to FLSA penalties; due to the absence of automated time clock in aid, sometimes organizations are bound to pay more wages in comparison to the rightfully owed. A recent example is of Montgomery County which due to the absence of any automated system had to pay overtime to those employees who worked for less than the standard of 40 hours workweek. This shows the necessity of having a time tracking solution as thousands of dollars could have been saved with its installation. Workers often misuse and take benefit of such situation and the employers have to face adverse effects with false claims. In such cases, companies not only pay extra money as penalty but also end up in wasting time as well.
It is a smart approach to learn from others mistake and to upgrade to web based tracking system so as to avoid any such losses in the future. The installation of time tracking software will help the public and private organizations to keep away the epidemic of overtime claims as even the costs of overtime pay is increasing. The automated time tracking solution will benefit both employers as well as workers, as they will have transparent and correct documentation and evaluation of work hours and also how much overtime pay is owed. The solution will prevent the companies from facing harmful litigation and will also ensure that workers do not get paid more than the deserved work hours.
