Above all issues that might occur in a business, payroll ones are probably most important to your employees. Nowadays, money plays a big role in the life of every individual so it isn’t a surprise that many employees try to flee from a company when payroll issues happen.

In this article, we’ll talk about some of those issues and what can you, as a manager do in order to stop them from happening and to maintain a good working environment. 

Miscalculating Overtime (Or Just Not Paying for Overtime)

You might be wondering how such a simple calculation is one of the biggest issues when it comes to payroll. In most countries, every hour of overtime is calculated as 150% of the normal hourly rate. Now, this all depends on the job your employees do, your industry, as well as on applicable statutory and federal regulations. 

The first problem which may arise is overpaying or underpaying your employees, for the work they do overtime. Everyone wants to be on the same level right? But the thing is that some positions are paid more than others and this might lead to conflicts in the working environment. Perfect solution for this is to implement an online employee time tracking software which will count how much time do your employees spend on various activities. Whether they are overtime or not, you’ll have a valid backup if someone is paid more than others. Everything is transparent, and every employee will know how much time they spend on certain tasks. Therefore, each employee will get a fair compensation for the time they spent working.

Other issue is when you just don’t pay your employees for overtime. This is plain wrong and in most countries, it’s illegal. If your employees put the effort to work more than needed, they should be rewarded. And yet again, a software which can track time spent on computer can help you out, and count the hours your employees worked overtime. Later on you won’t have an issue when it comes to payroll.

Poor Record-Keeping 

This might seem obvious but good record-keeping of all your payroll and other finances is extremely important when it comes to running your business in the future. 

Budgeting is what determines the amount of money that you can spend on various things such as hiring more employees, buying more technology or promoting your good workers. One of the most efficient ways to keep your payroll records is to use timekeeping software for small business. The data it gathers about the time your employees spend on certain activities, time needed for the completion of the project or other significant aspects of your business can help you in the future when it comes to planning. 

Based on previous records you can tailor your budget to future needs which means more money for your employees, better work distribution and project estimation. 

Running Payroll Too Late 

There isn’t much you can do when the pay for you employees is late apart from saying sorry. But once it happens, you’re slowly losing the trust they’ve put in you. And that’s something you can’t let happen. 

This is again closely connected to the data you gather from the app to track hours worked and pay. With the information such software gathered in the past, you can organize the amount of work that your employees need to do and the time frame in which it needs to be done. This means they won’t overwork and the project will be finished on time meaning you’ll bill your work on time, and pay your employees on time as well.

Inaccurate Time Entries

Not many companies have it, but if it’s the case in your workplace, you know how inaccurate time entries can result in miscalculated work hours. The best way to battle this is to have top time clock software which can track time automatically. This way, your employees won’t have to fill in timesheets manually and the software itself will track everything on their behalf. 

Bonus - there will be less paperwork. Everything is tracked via computer and apart from it being more convenient, it’s much faster and easier to use.


Keeping payroll information in one place is very important and having a best employee time tracking system can help you out immensely. Implement it into your business and make your life easier when it comes to calculating payroll and keeping a record of it.

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