| Time and attendance software is perhaps one of | | | | minutes. This is clearly not correct so there needs |
| the least understood of the payroll family | | | | to be some manual intervention to "round" the in |
| products. Sometimes known as award | | | | and out times to the start and the end of the |
| interpretation software it is the "glue" between | | | | shift. Lunch has to be deducted and the split of |
| your electronic time clock and your payroll and | | | | overtime categories must be taken into |
| accounting software. | | | | consideration. |
| In a completely manual system, staff fill out time | | | | This is a relatively simple example. A few |
| sheets. Payroll staff calculate payroll hours based | | | | electronic bundy clocks can cope with this |
| on their knowledge of the award rules and they | | | | however it gets quite a lot more complex. For |
| then key those payroll hours for each employee | | | | example, these are some of the manual |
| into a payroll system and job done. | | | | calculations done by payroll staff that will challenge |
| In an automated system, employees clock in and | | | | the very best time clock. |
| out using a electronic time clock, that data is | | | | Multiple rounding scenarios - Rounding to the shift |
| electronically usually via your network into award | | | | start time when an employee clocks late or early |
| interpretation software which has been | | | | while not rounding for timed lunch breaks and |
| pre-configured with the award rules, the system | | | | rounding to the nearest 15 minutes on clock out |
| automatically calculates the payroll hours and this | | | | Daily Balancing - Taking time from an overtime |
| can then be transferred into your payroll | | | | category and placing it into the normal time |
| software and, again, job done but much more | | | | category if the normal hours are short of the |
| accurately and much faster | | | | nominal shift hours. |
| The misunderstanding in the general business | | | | Payroll Balancing - As above but on a payroll |
| community regarding this process is that | | | | period. |
| electronic time clocks will be able to do the | | | | Automatic breaks - Auto deduct lunch breaks or |
| collection, interpretation and export to payroll | | | | not deduct taken breaks under a length |
| steps which is exceptionally unlikely. | | | | Leave entry - Become important when you want |
| It is most likely that electronic time clock or | | | | to export to payroll and save data entry time |
| bundy clock you own or purchase is unlikely to be | | | | Flextime Accrual - Bank time, flextime, rostered |
| able to perform any complex calculations. Some | | | | days off are all examples of the need to accrue |
| are reasonably clever and they may cope with | | | | special leave for time worked. |
| simple rounding and overtime calculations but | | | | Again, these are common requirements when |
| that's about their limit. | | | | calculating payroll and they are, ostensibly, outside |
| This is not surprising as the process of translating | | | | the capability of electronic bundy clocks. |
| an employee's In and out clockings into the hours | | | | The ultimate problem for most time clocks is |
| worked can get quite complex. It gets more | | | | they simply cannot interface with a payroll |
| complex when an electronic time clock is | | | | system and if they do,the information they send |
| involved...take a look at these two examples and | | | | is likely to be an inaccurate calculation of payroll |
| you will see why: | | | | hours unless your awards or pay rules are very |
| Example 1; The Time Sheet: Joe fills in a time | | | | very simple. |
| sheet for the week. His shift starts at 7.30 am | | | | Award interpretation software (time and |
| and finishes at 4:00pm. He gets 30 minutes for | | | | attendance software)will almost certainly be |
| lunch. On Monday he worked back for 3 hours | | | | required if you want to automated the accurate |
| and wrote 7:00pm on the time sheet. Pretty | | | | calculation of employee payroll hours and import |
| simple calculations here. 8 hours normal time and 3 | | | | that into your payroll system. If you are a small |
| hours overtime. | | | | enterprise with less than 30 employees the |
| Example 2: The Electronic Bundy Clock: Fred | | | | required investment may not justify the time |
| clocks in on the electronic bundy clock when he | | | | saving. However, if you have more than 30 |
| gets to work at 7:15 am. He clocks out at | | | | employees the return on investment becomes |
| 7:07pm. The reports on the time clock calculate | | | | more appealing. |
| that he has been at work for 11 hours and 52 | | | | |