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How to Manage Payroll Hours?

When a company or an organization is paying to its employees on hourly basis the payroll processing can become very difficult to maintain. The payroll service provider or management has to make sure that the each employee is paid according to the hours he have worked with the company\'s regulations. They also need to maintain the records of each employee\'s as per the laws defined by the United States Department of Labor. To maintain and keep the all data company need to have a well established system to control the hours of the worker\'s for which they are paid. Without any proper system it can become very confusing and time consuming. There are some basic steps company can take to control and maintain its payroll hours. Some of the very basic steps are mentioned below.

If an organization is paying on hourly basis to its employees, then organization should establish a timekeeping system. There are various timekeeping systems available in the market today like electronic time card system, fingerprint or hand reader system etc. Some of the systems not only keep time duration but systems are also integrated with the payroll software which ultimately eliminates the time for the manual calculations.

For a very small company which may not afford electronic or automated timekeeping system can establish a standard time sheets or buy a standard punch clock. These methods are not costly but they require manual calculations by a payroll representative to calculate hours and amount to be paid to employee, so the time and risk of errors can be there.

There is a misconception that employers cannot require salaried employees to punch time clocks. To avoid this establish rules to which employees are required to punch the time clock. The Fair Labor Standards Act (FLSA), which regulates the wage standards, does not forbid employers from making this request. Company should mention this in its procedure manual to avoid confusion of the employees.

Establish a rule for the employees and supervisors to send their payroll hours for each pay period. A specific submission should be mentioned to them to submit their reports or otherwise the payroll representative or management has to track each dates and hours to calculate the final payroll amount of the employee\'s. This process is very tedious and time consuming so it\'s better to inform them about all the necessary procedure in advance. If the payroll is large and include multiple pay dates, create and distribute a payroll calendar with the time card submission dates for each pay cycle.

To use a payroll software can be the most effective and reliable way to maintain the payroll. There are many payroll softwares available today in the market like Sage, Peachtree, QuickBooks, Ultimate Software and Mangrove. These softwares not only allow you to import the timekeeping data but also calculated pay hours according to the hourly rates you input. By using a payroll Software Company not only make the payroll process easier but it helps to keep the data of employee\'s hours worked each pay date.

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About the Author

This article has been provided courtesy of Southeast Payroll Services, Inc. is a payroll services firm in Tampa, FL. Offers a wide range of tax reports, complete payroll tax-filing services, bookkeeping and payroll accounting service provider.