Everyone, even human resources employees, make an occasional mistake. Fortunately, HBS’s ecotime® systems are designed to minimize user error and keep your company’s ship pointed forward.
Here are the five most common payroll errors, and how HBS’s ecotime® systems avoid them:
1. Human error – Errors in payroll calculation are inevitable with traditional timecards. American Payroll Association data shows an error rate of between 1% and 8% of total payroll in companies that use traditional timecards.
How HBS ecotime® avoids it – Total hours worked is handled by an automated system process, ensuring no mathematical errors.
2. Traditional time clock error – The time clock itself is another source of inaccurate payroll data. Traditional time clocks allow missed punches, duplicate punches and smudged illegible time cards. With traditional time cards and clocks, missed punches will not be caught until the time cards are manually tallied. Then supervisors, or managers, are required to supply the missing information based on their memories.
How HBS ecotime® avoids it – Because all time clock information is stored digitally, any user with the proper authority can adjust data to compensate for human error. In the event a manager is on vacation or unavailable, the ability to make the necessary adjustments can be granted to other system users.
3. Over-payment – Studies have shown that the average employee is overpaid for 10 minutes of work per day.
How HBS ecotime® avoids it – With flexible schedules, account billing and other customization’s, ecotime® can ensure that no company time is wasted.
4. Calculation errors for taxes, insurance, and benefits – Tax filing is a natural extension of payroll. Governments expect timely and accurate reports and deposits. Heavy tax penalties, with interest, are levied against companies that fail to comply with regulations.
How HBS ecotime® avoids it – The various automated processes built into the HBS ecotime® system remove user error from the equation. If the numbers don’t add up for whatever reason, ecotime® can provide readable summaries of relevant data.
5. Inefficiency and wasted time – How much time does it take a bookkeeper to manually add up time cards and calculate pay, taxes, and benefits? How much time is spent investigating and making corrections, answering employee questions about alleged discrepancies and manually cutting checks to compensate for underpayment?
How HBS ecotime® avoids it – By calculating employee pay, tracking accumulated vacation time, and applying special pay codes for events such as overtime or short-term disability, the HBS ecotime® system does the heavy lifting and complex thinking, enabling employees to focus on work.