Press "Enter" to skip to content

Tag: calculate payroll

What to Do When You Overpay Employees

Frustrated business owner looking at his computer

It’s easy to mistype data when you’re manually entering time records into a payroll system by hand. If you’ve made payroll mistakes in the past, you’re not alone. Studies by the American Payroll Association show us that approximately 40% of business owners make payroll mistakes annually. This results in an average of $845 in IRS penalties every year. In order to avoid this, many business owners have invested in online time tracking services that calculate records automatically. This type of software transfers your employees’ time records to payroll and accounting software platforms with ease, avoiding the need to enter time manually. If you’re manually entering data every pay cycle and you’ve made a payroll mistake, you might wonder how to handle it and, more importantly, when you need to handle it. We can help.

1 Comment

Finding the Right Payroll Expert

People lined up in a line with a finger pointed directly at one person

Running a business takes a lot of time and energy. For small businesses, doing your own billing and payroll might be the way to go, but what about a growing business? When business is booming, you don’t want to spend time keeping your books up to date, processing payroll, entering tax write -offs, or searching for missing tax information. You want to focus on the future of your business, rather than dealing with paperwork. This is why business owners are hiring payroll experts to take care of their financial needs. 

1 Comment

7 Reasons Why You Should Hire a Payroll Expert

a woman doing the "thumbs up" symbol towards the camera.

Payroll is one of the most important aspects of business– it builds financial stability among employees and boosts team morale. Many businesses, especially small businesses, tend to take payroll into their own hands and avoid outsourcing payroll. Managers and business owners spend hours calculating everything themselves, often times juggling other roles in the business at the same time. Taking care of your own payroll works when your business is just starting out, but this should be avoided when the business grows.

Once business is booming, it’s wise to bring in a payroll expert to make sure that you save yourself time, headaches, and money. This will allow you to focus on the growth of the business rather than worrying about whether or not your employees are going to get paid on time. Additionally, without a payroll expert, there’s a chance that you can make a mistake. Mistakes can lead your business to legal penalties, so getting some help might not be a bad idea.

7 Comments

Is it Legal to Automatically Deduct Employee Lunch Time?

A man and a woman drinking coffee

Lunchtime can be a tricky thing to track. Some employees forget to clock out, adding minutes to their paychecks daily, while others forget to clock back into work once they return. This leads to inaccurate timestamps and, even worse, inaccurate payroll. You will end up either overpaying employees or underpaying employees, which can lead to issues down the line. In order to keep timestamps more accurate, some employers choose to implement automatic lunch deductions for hourly employees. This ensures that employees get lunch breaks deducted, no matter the circumstance. This is great for employers who want to avoid overpaying employees, but many people still have questions about the legality of lunch deductions. 

36 Comments

Why Rounding Payroll Hours is a Bad Idea


A lot of employees ask “Is rounding payroll hours even legal?”, and the answer is yes. The Fair Labor Standards Act (FLSA) states that you must pay your employees for all hours worked. According to DOL, however, employers are allowed to round hours. Under the FLSA, you are allowed to round employee’s time in 15 minute increments or to the nearest quarter hour. When rounding time you just have to ensure that you are not violating FLSA regulations for minimum wage and overtime pay.

Leave a Comment

How Rounding Works in Payroll and Overtime

Round to the nearest 15 minutesFor 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.

15 Comments

Why is Your Payroll Bigger Than Expected?

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 consistent. If your same five employees come to work every day and work their set shifts, you should expect their payroll to be the same. If they use time off when they’re sick or when they’re on vacation, that’s the only time it differs (but usually your PTO policy will balance it out). Employees on a set schedule should obtain almost the same amount of hours every pay period, without any surprises.

1 Comment

Top 5 Payroll Errors You Can and Should Avoid

payroll errors

Business owners are experts at running their business. But they probably are not trained in payroll and they probably haven’t studied federal and state wage and hour laws. This leaves room for quite a bit of error.

Messing up payroll is serious business. Payroll is a business’ largest expense and getting it wrong could mean facing an even larger expense. I’ll bring five of the most common payroll errors to the attention of these busy people so they don’t wind up in trouble for it later.

1 Comment

Top Free Business and Payroll Calculators on the Web

Calculate financial

You can’t do business without calculations and one could argue that you can’t do business without calculators – after all, where would you get the time to run your business if you had to calculate everything by hand. Lucky for the nation’s small businesses, the internet offers tools of all kinds to help with everything from the most basic to the most complicated calculations.

Leave a Comment

Double Time Labor Laws – Who Gets It and How to Calculate It

two clocks

Double time rules seem complicated because we hear a lot about it from many different places. Some companies offer double time for holidays, but that’s just a benefit, not a law. Some countries offer double time on Sundays, but that’s not how it works in the US. Double time rules are pretty simple actually. There are only two instances in which employees should get double time pay.

81 Comments

Estimating the Last Few Days of the Pay Period Isn’t a Good Idea

Co-Authored with Danielle Feiger

You’d almost be surprised that an employer would recognize the value in tracking accurate time (it saves a lot of money on payroll costs) and then, at the end of every pay period, estimate the hours for the last few days.

But it’s actually a fairly common practice, though not a very good one.

5 Comments