What is Payroll & Payroll Errors
The list of all paid employees of a company is payroll, but this term is commonly defined as the total amount that a company pays to its employees as salary, wages, bonuses, withheld taxes, and other compensations.
The calculation of payroll is done by employees of the relevant department considering their attendance, leaves, salary, overtime, allowances, compensations, taxes, and other deductions. The whole process is really sensitive as any payroll errors directly or indirectly cost the company money.
Some Common Payroll Errors
Each company needs to prepare payrolls, filing all documents prescribed by the government or respected authority. As there are so many factors to be considered, most of the time there remain some errors in the payroll. Here are examples of some common payroll errors to be aware of:
- Failure to maintain a consistent payment schedule
- A mistake in inclusion or exclusion of employees
- Wrong calculation of salary or wages according to the attendance
- A mistake in preparing and (or) disbursement of overtime payments
- Wrong disbursement due to similar demographic details
- Mistakes in manual record-keeping and data entry
- Missing a garnishment, levies, or child support
- Missing the payroll records after a few years
- Chances of information leakage due to lack of confidentiality
- Errors in complying with all existing laws governing your business
How RightPunch Reduces Payroll Errors in Kronos
RightPunch is a biometric time clock for Kronos workforce management systems that identifies the employees using their biometric data and uses those for their attendance, check-in, and check-outs. The reasons for using a biometric time clock are to eliminate time theft and buddy punching, reduce administrative expenses, and reduce payroll errors. As the biometric data is non-transferrable and non-sharable, no one can manipulate the actual working hours. Let’s have a look below to find out how RightPunch reduces payroll errors in Kronos:
As RightPunch uses the biometric data of an employee for identification, there are no chances of identity theft. Biometrics is the most secure form of identification that is almost impossible to forge.
Exact Time Clocking
There are no possibilities to fool a biometric time clock or manipulate the system without being present physically and scanning the enrolled biometric data. So, RightPunch clocks exact check-in and check-out time.
Elimination of Time Theft
The biometric time clock eliminates time theft. In a traditional time clocking system, employees used to take a longer lunch break and frequent short breaks pretending that they are working. But RightPunch counts only the productive hours.
Prevention of Buddy Punching
Colleagues help each other punch their cards if anyone is late. It costs around 3% of total payroll expenses. RightPunch prevents buddy punching and saves the employer from paying for the time during which no one has worked.
Automation of Payroll Processing
Using RightPunch, it’s possible to automate the whole payroll process and it doesn’t take extra hours to input the attendance data and calculate the salary or wages manually. It reduces the errors in calculation.
US Vision, Inc. uses Kronos for managing their workforce, but they needed to streamline a labor tracking system for thousands of employees over their 700 locations. They installed RightPunch PC-based biometric time clock software on servers at each of their 700 locations. Download this free case study to learn how they integrated RightPunch to set up an optimized labor tracking system.