Payroll Document Mess or “Who moved my timesheet?”
Updated: Jun 20
Here are just a few of the issues effecting businesses still depending on outdated timekeeping practices:
One of the main disadvantages of paper over digital media is the challenge of keeping up-to-date backups. Paper timesheets and punch cards are fragile and perishable. It is a liability that a business cannot afford to have happen. They can be swapped, altered manually with no record of the changes made, destroyed, or simply misplaced.
Just imagine having to deal with a fire or a flood in your business, while at the same time freaking out about having no records of employee hours to calculate payrolls.
It is critical to have a quality digital time keeping system for your business to track time worked.
Many companies get served with frivolous lawsuit claims from former and current employees who take advantage of the system. They can report that they have not been given breaks and lunches, knowing that the company does not track them appropriately. Without proper documentation and a system to store that specific timekeeping data, you will be served with a suit claiming thousands of dollars in back pay for breaks and late penalties in which you will have to negotiate and ultimately settling, not to mention the potential attorney fees.
The Department of Labor claims work very similarly in which they apply the law but charging an employer the employees’ hourly rate for each missed break and lunch infarction plus late fees and penalties. So, for an average workday of 8 hours, and there are no lunch or breaks tracked, attorneys and DOL look at that as 3 infractions per day at hourly rate times each day worked for the company. It is easy, low hanging fruit for ambulance chaser attorney’s and a needless cost to small and large business alike.
As you can see by the examples above it can be very costly to not have the correct time and attendance recording keeping in place. HR simplistic can show you the options to keep your time keeping records in order.