For many small and medium-sized businesses (SMBs), managing time tracking and payroll can feel like juggling two critical yet complex tasks. But, what if you could seamlessly integrate these tasks into one streamlined system?

Well, now you can! Workforce management companies, like OnTheClock, are now offering payroll and time tracking in one platform, allowing business owners to save time, reduce errors, and simplify the employee management and compensation process.

In this article, we’ll dive into the advantages of uniting time tracking and payroll, exploring how this synergy can simplify a company’s workflows, boost employee trust, and ultimately give managers more time and data to focus on growth.

Defining Time Tracking & Payroll

Time tracking is the structured process of recording employees’ work hours, covering everything from daily start and end times to breaks and paid time off (PTO). 

Payroll is the complete process of calculating, distributing, and reporting employee wages. It involves tracking work hours, determining pay rates, withholding the appropriate taxes, and managing deductions for benefits, retirement contributions, and other withholdings. 

The payroll process exists to ensure employees are compensated accurately and on time for their work, and time tracking serves as a foundational element in that equation. While it’s possible for each to stand on its own, much like peanut butter and jelly or macaroni and cheese, they’re better together.

The Advantages of Unifying Time Tracking and Payroll 

Completing payroll can be time-consuming. Recent statistics demonstrate the truth behind this statement, such as: 

• The average small business spends five hours on each payroll run.
• Around 63% of small business owners underestimate the time it takes to process payroll. 
• Twenty-five percent of small businesses handle their finances on paper rather than on a computer, and 45% don’t have an accountant or bookkeeper to assist them with payroll. 
• Approximately 40% of small businesses spend more than 80 hours annually on payroll tax compliance. 

Integrating time tracking and payroll into a single system can have a transformative impact on more than a company’s time – it enhances its operational efficiency, accuracy, compliance, and employee engagement. Here’s a closer look at some of the key benefits:

Accurate Payroll Processing

A unified system captures all time data — regular hours, overtime, vacation, and holiday pay — in real time. This data can easily be downloaded into payroll in seconds. By eliminating manual calculations, integration ensures accurate compensation and reduces costly payroll errors.

Streamlined Administration and Reduced Paperwork

Disconnected time tracking and payroll systems require HR to input and transfer data manually, increasing the chance for errors and duplicating work. An integrated solution automates this process, eliminating the need for data entry in multiple systems and allowing businesses to go paperless. This streamlining not only improves accuracy but also frees up HR teams to focus on more strategic initiatives. 

Robust Reporting and Insights

Integrated reporting gives you instant access to data on hours worked, overtime, attendance, and more. Managers gain insights into trends that can identify productivity improvements and highlight areas needing attention. Dynamic reporting options allow businesses to customize reports for specific metrics, helping to make data-driven decisions with ease.

Increased Employee Engagement and Self-Service Options

Many integrated systems offer employee self-service portals, giving staff access to their schedules, pay stubs, and benefits information. This transparency fosters trust and engagement, as employees have direct access to the information they need. Honesty is a virtue! Self-service capabilities also reduce HR’s workload, as employees can handle routine queries themselves.

Improved Efficiency and Reduced Costs

Automated time tracking and payroll lighten administrative burdens, reduce errors, and save valuable time. For example, biometrics or digital time clocks integrated with payroll reduce time theft and buddy punching. This approach will lighten the workload for payroll staff, allowing them to focus on other tasks that drive value for the business.

Enhanced Compliance and Reduced Risk

Labor laws require precise tracking and reporting of work hours to avoid potential violations. An integrated system helps maintain compliance by providing automated, consistent data records, making it easier to comply with wage and hour regulations. In the event of an audit, having consolidated, reliable data helps businesses avoid penalties and ensures transparent reporting.

Secure Data and Minimized Access Points

An integrated platform centralizes sensitive payroll and HR data, which, in turn, enhances data accuracy and security. Fewer access points mean there’s less risk of unauthorized changes or security breaches. By maintaining all information within a single, secure system, businesses can better protect confidential employee data.

Reduced Compliance Risks and Enhanced Accuracy

Integrated systems keep up with regulatory changes, applying the appropriate rates and tracking compliance rules in real time. Automated calculations reduce wage-and-hour complaints, strengthening a company’s reputation and protecting against noncompliance penalties that could impact finances and public trust.

Selecting the Proper Time Tracking and Payroll Provider for My Company 

Choosing the right integrated time tracking and payroll solution is crucial for streamlining your business operations, reducing errors, and ensuring compliance. Here are some key factors to consider when selecting a solution that fits your company’s needs.

Ease of Use: The solution should have an intuitive, easy-to-navigate interface for both administrators and employees. A complex system may lead to confusion and errors, so simplicity is key. Look for solutions that offer a self-service portal where employees can clock in/out, request time off, view their schedules, and access payroll data.

Scalability: Choose a solution that can grow with your business. It should be able to handle increasing numbers of employees and adapt to evolving payroll needs. Ensure the system can accommodate your business's specific needs, whether you're handling hourly employees, salaried employees, or both.

Automated Calculations: The system should automatically calculate employee wages based on work hours, overtime, and other pay factors. Real-time tracking and immediate payroll adjustments based on any changes to time or attendance data are essential for reducing delays and errors. The system should be able to automatically calculate and withhold the appropriate federal, state, and local taxes as well as manage deductions for benefits and retirement plans.

Customer Support: The solution should offer excellent customer support with real humans to help resolve any issues promptly. Look for providers with a reputation for helpful, accessible support. Consider whether the solution offers training for your team, including tutorials, documentation, or live training sessions.

Cloud-Based Access: If your business operates across multiple locations or remotely, a cloud-based solution allows for easy access and ensures data is consistently updated across all devices.

Reporting and Analytics: The system should offer customizable reporting features that allow you to generate detailed payroll reports, attendance summaries, tax filings, and compliance checks. Advanced analytics features can provide insights into labor costs, productivity, employee performance, and areas where cost savings or efficiency improvements can be made.

Compliance and Security: Choose a solution that stays current with federal, state, and local regulations, ensuring compliance with wage laws, tax filings, and other employment-related laws. Since payroll data is sensitive, ensure the system provides strong security features, like encryption, multifactor authentication, and regular backups.

Cost-Effectiveness: Make sure the pricing structure is clear and fits within your budget. Look out for hidden fees or charges for additional features. Compare the solution's features and benefits to its price to ensure you're getting the best value. Remember, the cheapest option may not always provide the most comprehensive or efficient solution.

Employee Experience: The solution should allow employees to easily clock in and out, track time off, and access payroll information without unnecessary complexity. For businesses with remote or mobile employees, having a mobile app or mobile-friendly system can increase convenience and accuracy in time tracking.

Customer Reviews and Reputation: Look for reviews from other businesses in your industry to see how well the solution has worked for them. Research the vendor's track record in the market to ensure they offer a reliable, proven solution.

We Have a Solution for You

OnTheClock Payroll consolidates time tracking, payroll, and scheduling in one intuitive platform, making it easy for businesses to access vital workforce data without the complexity and cost often associated with larger payroll providers, extending users numerous benefits, including: 

• Effortless Integration: Users can now sync timecards directly with payroll, eliminating the need for multiple logins and ensuring data accuracy across the board.
• Automated Calculations: OnTheClock handles payroll calculations, deductions, and tax compliance, ensuring employees are paid accurately and on time.
• One-Platform Management: Manage your entire workforce from a single interface, cutting down on administrative work and third-party delays.
• Instant Updates: Make changes on the fly instantly, keeping your payroll compliant and adaptable to changing business needs.

OnTheClock Payroll checks all of these boxes and is designed to transform time sheets into paychecks in a few clicks, saving businesses both time and money. Customers enjoy an affordable pricing structure — $40 per month plus $6 per employee. A $250 migration fee helps support the transfer of employees’ data and historical records, ensuring companies are prepared to run their first errorless payroll as soon as possible. Outside of that, there are no hidden costs or fees. This approach aligns with OnTheClock’s commitment to transparent and cost-effective payroll solutions that empower SMBs to streamline their operations.

Ready to simplify your payroll process by utilizing your own time data? Discover how OnTheClock Payroll can transform the way you manage time and pay. Learn more today!