It is important to pay payroll expenses from the time and attendance system, and not the theoretical labor schedule. This attendance system tracks the “actual time” worked by business employees. Each staff member should have their own “timecard”, although computer systems have improved these paper systems over the years. At a minimum, the timecard can be a paper card which has the time and date the employee arrived for work, and the time and date the employee left work, printed or stamped on the card newjetnet.aacom.
o If management pays the employee directly from the theoretical work schedule and the employee arrived later than scheduled, then the business is paying too much to the employee – reducing profit.
o If the employee arrived earlier than the theoretical labor schedule suggested, the business will not lose any money by paying from the schedule – however, a number of regulations are violated by not paying the employee for actual time worked.
Employees, in most industries, are notorious for arriving to work 15-minutes earlier than scheduled, or leaving 10-minutes later than scheduled, requiring that employers pay appropriately for worked time.
To ensure compliance with regulations and to reduce the loss in profits, the correct way to pay employees is with the clock in / clock out times from the time and attendance system. Employee pay should be based on actual time worked. Where applicable, biometric systems, such as fingerprint logins will help control employee early clock ins, buddy punching, and labor regulations compliance.