For the longest time, why anyone would use rounding in payroll calculations was beyond me. Since rounding is meant to even out in the end, what could possibly be the point? I don’t like unanswered questions hanging around so I decided to do some digging. I still don’t think rounding is a brilliant idea but at least I understand why it’s used. Essentially, rounding in the morning is meant to benefit the occasional late employee while rounding in the evening can benefit the employer. I’ll explain how this works.
Category: Accounting & Payroll
Most companies have several choices as to which payroll schedule to use. There are four that are allowed in the US. They are: weekly, bi-weekly, monthly, and bi-monthly. The four choices all have their own pros and cons. This graphic should help a business owner get a handle on the right choice for their company.
Not all of these schedules, however, are available to use in all states. Be sure to check this list for payday frequency requirements by state. The options vary by state and even by occupation in some instances.
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Employees that have been salaried for many years or decades are probably oblivious to labor rules for non-exempt employees. Employees that are eligible for overtime have to be careful to record every minute worked. This will probably mean adding some new habits to the work routine.
The Timesheets.com QuickBooks integration uploads time tracked in Timesheets.com straight into your QuickBooks company file with a couple clicks of the mouse. Your time can be tracked against employees, contractors, customers, jobs, service items, classes, and payroll items.
The common definition differs from the payroll definition, which makes it particularly difficult to sort out. But sort out you must, because when it comes to business the payroll definition is the one that counts since that’s the one used in wage and hour disputes.
Have you ever run payroll and found that your cost is much higher than expected? In some industries, like dental offices, for example, payroll costs should be pretty constant. Your same five employees come to work every day and work their set shift. They take off when they’re sick or on vacation and your time-off policy compensates them for it. They don’t need to stay late or come in early most of the time – the office is open on a pretty set schedule.
If you think about the role of a business owner, you’ll realize that payroll takes sort of a second seat. While it’s incredibly important, business owners are experts at running their business. They’re not trained in payroll and they haven’t poured over all of the federal and state laws. This leaves room for quite a bit of error in what is the largest business expense. I’d like to quickly bring some of the common errors to the attention of these busy people so they don’t wind up in trouble for it later.
If you’re not ready to make the switch from paper time tracking yet, that’s ok. Maybe you’re just more comfortable with paper than you are with computers. Maybe you don’t have the time to learn any new software. Or maybe you don’t think it would be cost effective.