Payroll data is one of the lifelines of modern business. Whatever a firm’s size, payroll data is essential for the proper function of the entity. The most visible aspect of the system involves paychecks. Every employee knows what the payroll department does! Often looked at as a mundane function, payroll is a vital cog in the workings of every company, even so-called non-profit concerns. Time clocks are one of the common tools for payroll employees. The time clocks gather up a massive amount of pertinent data that helps payroll personnel issue checks, deduct expenses, and keep track of vacation days, among countless other duties.
Time clocks are data banks. Even in large companies that use computer loggers instead of actual time clocks, the measurement of hours worked, for each employee, is the backbone of the payroll documentation system. As its primary job, the payroll department must keep an eye on changes in wages, as well as raw hours worked. These two functions are at the forefront of the payroll effort. Workers get raises, accumulate vacation time, and incur travel expenses, among other things. The payroll department needs to stay on top of these statistics.
Time clocks are effective for measuring hours worked, time in and time out. Payroll entails much more than that data, however. Every employee should have a file that aggregates such information as sick leave earned, expenses incurred, bonus pay, and numerous other categories of monetary statistics. Most such records are a matter of law in nearly every state. In any case, law or not, the maintaining of these records is a wise business practice.
When delivering paychecks to employees, much of the data has been taken from time clocks. Regardless, each employee should receive a check either by electronic deposit, hand-delivery, or via the mail. Distributing the checks should follow a routine procedure. Uniformity is the hallmark of a good payroll system. Even small companies should abide by these guidelines for payroll uniformity. It is good for employee morale to know that paychecks are delivered like clockwork.
Uniformity, consistency, and accuracy are the three pillars of any high quality payroll department. On top of that, all the procedures for payroll processing should be written into the company guidelines. That way, new hires can read up on the details of how and when they will be paid. Records should be maintained for each worker, to detail the wages, hours worked, etc. While often tagged as a “boring” aspect of company management, the payroll department is one section of the company that everyone knows. An efficient flow of funds, on a regular basis, makes for a smooth business operation.