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Payroll + Time and Attendance Software: Integrated Solutions

Did you know you can integrate your payroll system with time and attendance tracking software? If you didn’t already know this, and you use two separate systems for payroll vs. time tracking, you could be saving tons of money as well as hours of work by streamlining the two functions.

What is integrated Payroll + Time and Attendance software?

Integrated payroll and time and attendance software is an all-in-one system that allows your business to track employee hours – while instantly streamlining that data with your payroll system. 

Why use an integrated system for payroll and time and attendance? These days, it doesn’t make much sense for businesses to purchase two separate software solutions to track time and attendance vs. payroll. Because payroll is often directly linked to employees’ time worked, it makes the most sense to invest in one unified system. This will help your team to cut software costs, allow your internal staff to save time on payroll, and prevent time tracking errors.

What is a Payroll + Time and Attendance system used for?

As a result of using an integrated software for both your payroll and time and attendance needs, management at your business can –

  • Easily visualize how payroll correlates with employee hours
  • Simplify time and labor management (ie. time off, PTO, sick days, meal breaks, overtime, etc.)
  • Automate time and attendance data with back-end systems
  • Establish rules for clocking in and out of shifts
  • Prevent incorrect payroll calculations and tax errors
  • Remain compliant to tax and labor laws

Most often, integrated payroll and time and attendance software is used by businesses with hourly employees, remote or on-the-go employees, and/or contractors. This is because tracking exact time worked is most important with these scenarios. However, some businesses with salaried employees may use time and attendance features to track hours worked on a project, or bonuses and commissions due to hours worked.

How does it work?

If you are wondering whether or not implementing a payroll + time and attendance system is difficult – rest assured it is not! This software is easy to set-up and install as well as use on a regular basis. Here’s an overview of how it works:

  1. Pick a system. If you don’t yet have software for payroll and/or time and attendance, you will need to choose a system and software. For software, you can choose between a web-based or cloud-based system. Then, you can also choose the authentication method – in other words, how employees will “clock in” and “clock out” of the payroll + time and attendance system. For instance, options include swipe cards, web-based passcodes, mobile authentication, and more. Look into types of time and attendance systems further.
  2. Set “rules” for time and attendance. Once your system and software are set-up, you can choose rules for employee time and attendance tracking. For instance, establish protocols for tardiness, overtime, meal breaks, etc. You can also set up a system for employees to request time off, take vacations, view schedules, and more. Or, you may want to restrict which rooms/doors can be accessed during certain times of day. Setting up these rules will be a different process for each system, so make sure to ask your software provider if you need assistance.
  3. Employees “clock in” and “clock out” regularly. Once employees have their “authentication methods,” they will be able to clock in and clock out during each workday or shift.  Whether they use an ID card, biometric reader, mobile app, etc. this should take only seconds! 
  4. Use scheduling and insight tools to remain labor compliant. Most payroll + time and attendance software will include helpful tools such as automated scheduling and labor compliance. On a regular basis, you can utilize these tools to quickly schedule employees while staying labor law compliant. 
  5. Data is unified with payroll processing. All time tracking data is automatically streamlined with your payroll processing system. You don’t ever have to worry about uploading data or guessing whether or not time tracking is accurate. Enjoy error free tax calculations without the stress!
  6. Pull data and reports at any time. Tax season or not, your management team can pull reports and data about time and attendance. Pick up on patterns and trends, rectify issues, and gain valuable insight about time and attendance at your business.

Industry uses 

Are you wondering whether your industry can utilize payroll + time and attendance software? Luckily, any business or organization who benefits from tracking time and attendance can take advantage of this integrated software. Since every business needs to do payroll, you are making your life so much easier if you integrate the systems and software! Here are some common industries that benefit from integrated payroll and time and attendance software – 

  • Education
  • Healthcare
  • Manufacturing
  • Non-profits
  • Office environments
  • Restaurants and bars
  • Retail
  • Finance and banking institutions
  • Government agencies
  • Transportation and automotive
  • Hospitality
  • And more 

Keep in mind that even though businesses with hourly employees tend to use time and attendance software the most, you can use it with salaried employees as well. Time and attendance tracking can help you track hours spent on certain projects or for bonus and/pr commissions purposes.

Benefits of streamlined payroll + time and attendance

We’ve already mentioned some of the noteworthy benefits of integrated payroll and time and attendance systems. But here is a list of the top benefits you can expect when integrating payroll with time and attendance: 

1. All-in-one solution

You will no longer have to worry about managing time and attendance and payroll using two different platforms. Simply set up the integrated software once. Then, employee time and attendance data will sync with your back-end payroll process automatically. When you need to access the data, you can enjoy the convenience of using one unified platform.

2. Cost savings

Rather than purchasing two separate software platforms for two interrelated processes, you can save money by integrating them. You’ll save money on ongoing software costs. Plus, avoid paying an accountant or bookkeeper to manage your payroll manually, as well as prevent time theft. Learn more about the benefits of time and attendance including cost benefits.

3. Manage schedules easier 

Most payroll and time and attendance software options have built-in schedulers. This will allow managers and business owners to schedule employee shifts with the touch of a button, while staying compliant with labor laws. You won't have to worry about under-scheduling, over-scheduling, or overlooking employee vacation time.

4. Automate time + payroll data 

Of course, an integrated software means that all time and attendance data and payroll data will be synced and automated. Forget the hassle of manually entering employee hours in your payroll process or miscalculating paycheck amounts. Automated data means easier processing and essentially no errors!

5. Easy tax calculations

When it comes time to calculate taxes for your business, your automated data will basically do the work for you. Save hours of time doing tedious tax calculations and worrying about human error. Not to mention, you likely won’t need an accountant to help you with taxes, as the system is automated and ready to go when you need it!

Many payroll and time and attendance software options also have “labor cost trends” analyses. Basically, the system can show you your scheduling patterns and labor costs over a period of time. It will also show you how to reduce your labor costs by scheduling differently, whether your employees are hourly, contractors, etc.

7. Labor law compliance

The software will help you stay compliant with labor laws easily. For instance, it will automatically alert you about incompliance with meal and break rules, rounding guidelines for “in” and “out” punches, overtime laws, vacation time, and more.

Adding on Time and Attendance to current Payroll solution

If you already work with a payroll provider, you may not have to look for an entirely new system to benefit from time and attendance features. Many payroll services allow you to easily add on time and attendance to your current system. For instance, Paychex payroll services and ADP offer time and attendance tracking to their payroll systems. We recommend simply calling your current provider and ask about their time and attendance offerings. This way, you can keep your same software while adding on time and attendance at a very low cost. 

If you do not currently use a payroll solution, it might be worth it to consider working with a payroll service. This will likely allow you to utilize payroll software as well as time and attendance functions. Get started by looking over these 10 questions to ask when looking for a payroll service or explore whether payroll services fit within your budget.

Otherwise, you can search for an integrated payroll and time and attendance solution that fits within your budget.  Get started by using our free online comparison tool to compare options for payroll and time and attendance solutions. We match you with the top suppliers in our network and save you up to 30%.

Get free quotes from up to 5 time and attendance software suppliers!
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