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7 Tips to Save on Payroll Costs

Without question, employee labor is one of the greatest expenses that employers face each month. However, it may surprise you to hear that it can also be one of the most poorly tracked or controlled expenses. Why is that?! At first glance, you might say that seems counterintuitive given the timeless importance of controlling costs.

Register for an upcoming webinar on Thursday, April 7th at 2:00 pm PT to learn more.

There are many reasons why this is the case. Perhaps the most common reason is that historically it has been difficult or overwhelming from an administrative standpoint to track time. Or perhaps it has even been too costly to accurately track time. Today, however, these problems have been solved, yet many employers are unaware of the simple, affordable solutions available for conveniently tracking time, and ultimately, reducing the cost of payroll.

While a full list could be lengthy, here are 7 quick ways employers can reduce the cost.

  • Pay based on actual time worked, not scheduled time – It is common for employees to be paid based on what they are supposed to work, not on actual minutes worked. Due to the realities of human nature and employee habits, unfortunately, this means employers are paying for all deviations from the ideal, such as late arrivals, early departures, extended breaks and lunches, personal errands and perhaps even employee absences. This lack of accurate tracking can literally cost an employer thousands every month in added wages and payroll taxes.
  • Stop rounding and approximating employee punches – In some cases, employees are being asked to manually record in and out times. Most commonly, they will round to the nearest 15-minute increment for each punch (four punches per day). When employees round punches, it’s nearly always in their favor, often resulting in 15 to 45 minutes of overpaid wages per day… per employee. This is very costly! Solve this problem with effortless, automated time tracking.
  • Track employee lunches and breaks – Employees are generally entitled to paid breaks and a lunch break (unpaid) each day. But how frequently do breaks or lunches end early? Rather, due to life’s happenings, how often do they run long?! When employers don’t track these occurrences, it results in lost productivity and wages. When tracking is in place, however, employees can take the time they inevitably need at their own expense, not the employer’s.
  • Set threshold alerts for part-time and overtime hours – It is common for part-time employees to run over their permitted time, or more commonly, for full-time employees to accrue extra minutes throughout the week resulting in overtime. To minimize overrun hours start using system alerts to remind employees and supervisors that an employee is reaching their specified time threshold.
  • Reduce administrative time – It is no secret that time is an expense. Cut countless hours from the payroll process each year with automated timekeeping, directly reducing the administrative expense.
  • Reduce payroll errors – Payroll errors can be very costly, not only in terms of dollar miscalculations, but also in the cost to reprocess, reprint and reconcile mistakes. The solution is simple. Minimize payroll errors with automation.
  • Reduce overstaffing with scheduling – Employee scheduling takes tremendous time. Without the right tools, it is common for overstaffing to occur, over-scheduling of specific employees resulting in overtime, and other costly issues. However, when timekeeping is combined with advanced scheduling, supervisors can easily avoid these costly occurrences.

There are many ways, both small and large, that employers save with simple, affordable timekeeping. Contact us to learn more about how we can help you lower the cost of payroll.

Register for an upcoming webinar on Thursday, April 7th at 2:00 pm PT to learn more.

Did you know we offer automated timekeeping?

We Offer Automated Timekeeping

Employee labor is costly. The administrative cost and time associated with employing your staff is also significant. An important part of our mission as an organization is to lower your cost of doing business, simplify how you manage employees, and drastically better the employment experience for business owners, managers, employees, and the payroll staff!

Lower the Cost. Improve Performance.

With those priorities in mind, we’re very excited to offer a solution to our clients that effectively addresses each of these objectives, perhaps unlike any other service on the market. This service is “automated timekeeping.”

While you may already be familiar with traditional punch cards and the concept of timekeeping, you are likely not aware of how today’s automated timekeeping technology offers a long list of tremendous benefits to employers. These include:

  • Reducing your cost of employee labor each period.
  • Cutting hours from the payroll administrative process.
  • Minimizing your compliance risk as an employer.
  • Simplifying how you schedule, approve and oversee employees.
  • Maximizing employee accountability and productivity.

 

Automated Timekeeping is Vital for Employers

Labor is among the greatest expenses you have as an employer. Therefore, it is critical to manage this cost. What are you currently doing to address this?

Automated timekeeping, unlike any other labor-related tool, is one of the most effective ways to control and reduce this cost. While there are many services on the market that do a variety of helpful things for employers, timekeeping is vital for employers in managing costs and reaching optimal success.

We’re Here to Help

If you’re not yet using an automated solution, we hope you’ll take a closer look at the many benefits of automated timekeeping! Contact us. We’d love to help you learn more about lowering your cost of doing business while simplifying how you manage employees.