Integrating payroll and attendance software is a complex process that plays a crucial role in accounting software. While you integrating payroll and attendance, both systems get linked together, so that the work hours of the employee are automatically updated in payroll. It is one type of way that helps HR to make tasks easier, faster, and more efficient while accuracy and transparency are improved. In this blog, we’ll explore how to integrating payroll and attendance. And stay connected to learn how to calculate them with a quick solution.
What is Payroll?
Payroll is the process which a company calculates and pays their employees for the work they do. It includes determining wages or salaries, adding bonuses or overtime and subtracting taxes, insurance, and other deductions. It is how a business makes sure every employee gets paid correctly and on time. It also keeps a record of all payments for legal and financial purposes.
What is Attendance?
Attendance refers to the record of when employees come to work, leave or take breaks. It is help a company track how many hours each employee works, late arrivals, early departures, and absences. Keep accurate attendance records is important for calculating salaries, managing leaves, and ensuring that the workforce is productive and organized.
Why Integrating Payroll and Attendance Systems is Important?
Integrating payroll and attendance software involves linking the software that monitors employees’ work hours, leave and overtime to the system. With these two systems integrated, attendance information automatically feeds into the payroll system, saving time on manual input and decreasing errors. This not only ensures accurate salary calculations but also saves HR departments time, maintains records current and streamlines the entire payroll process.
Key Benefits of Integrating Payroll and Attendance Software
Here are a few key benefits of integrating payroll and attendance software, explained in a step-by-step method, mentioned below.
- Provide access to data collection for automated attendance.
- Then, make a connection to link it with the payroll system.
- Calculate the payments for attendance records, which are based on.
- Before making a payment, verify the data for accuracy.
- For HR and management, create or generate reports.
How to Integrating Payroll and Attendance Software?
To integrating payroll and attendance software means connecting both of them together, making the data automatically flow from attendance to payroll, with no manual entry, which was not needed. Here are some steps to integrating payroll and attendance software, as follows.
Choose Compatible Software
- Make sure that you can share data from both your attendance system and payroll system.
- Like API or CSV file, most modern software integration options to importing/exporting.
Collect Employee Data
- The same employee IDs or codes should be used by both systems.
- With the help of payroll details, this matches the records of attendance correctly.
Set Up Data Sync
Using the features below, connect the attendance software to the payroll software.
- API (Application Programming Interface) Integration.
- Or use File upload to export the data of attendance and upload it to payroll manually.
Map the Data Fields
Make sure the fields of data are like.
- Employee ID
- Work hours/shifts
- Overtime/leave
- Late arrivals
- Match both systems between them correctly.
Test the Integration
- To check, run a test for one or two employees.
- In payroll, it shows the actual correct working hours.
- It calculates all the salaries accurately.
Automate the Process
- After testing, program it for daily or weekly syncing itself automatically
- You can avoid manual errors and save time through this.
Monitor and Update
- For errors or missed entries, remember to check regularly.
- If new employees or policies are added, update integration in settings.
Example
- Just imagine, an employee worked 8 hours a day for 22 days, which was kept as recorded in the attendance software.
- The data of the employee, which was kept on the attendance that automatically goes into the payroll software.
- Payroll calculates the salaries of the employees without entering any manual input, overtime, and deductions correctly.
How can we Calculate Accurate Employee Hours in Payroll and Attendance?
Here are some steps to calculate accurate employee hours, as follows.
Use a Reliable Attendance System
Attendance can be marked through the Employees by using.
- Biometric System (fingerprint/face scan).
- Swipe card.
- Mobile app or online check-in.
Through these records, you can keep their in and out times automatically.
Collect Daily Work Hours
The system calculates the “Total Work Hours”: (Check-out Time – Check-in Time).
Example
- 9:00 AM Check-in
- 6:00 PM Check-out
- 9 hours Work Hours
(If needed) Subtract Breaks
If the breaks of lunch or tea are unpaid, then subtract them.
Example
9 hours – 1-hour break = 8 working hours
Count Overtime and Leaves
- Add as overtime if someone works more than their limit hours.
- If anyone takes leave, mark them as leave hours unpaid, which is based on policy.
Add Up Hours for the Pay Period
For the entire month or week, add all daily hours.
Example
- 40 hours in Week 1
- 38 hours in Week 2
- 78 hours is the Total
Check for Errors
- Look over the records that are missing or not checked out.
- Before finalizing, confirm it with the supervisor or the employee.
Send Final Hours to Payroll
- Send the total calculation of hours to the payroll software once it is verified.
- During the calculation period, payroll uses it to calculate by using this formula.
(Total Hours × Hourly Rate) + Overtime – Deductions is the summation of the Total Salary.
Example
- In a month, let’s take an employee who worked 160 hours a day and earned $200/hour in a day.
- $32,000 is the regular pay calculation of the amount by (160 × $200).
- Add 10 hours of overtime, which was worked extra by the employee, then the calculation will be $2,000 (10 × $200).
- Including overtime, $34,000 is the total salary of the employee.
Conclusion
We hope that the above article, which helps you to integrating Payroll and Attendance software, clarifies all of your doubts about accounting software. Through this article, you can get help for your business accounting to build a solid foundation. If you still have any issues on this topic, you can easily talk with our support team for ProAdvisor assistance.