Accurately recording employee time is critical for payroll and wage and hour law compliance. The days of manual punch clocks are long gone, but that doesn't mean technology has made the process easier. In fact, PEO solutions that simplify the increasingly complex task of recording time and attendance can greatly aid international companies entering the U.S. market.
While federal labor laws provide the baseline for minimum wage and overtime, several states and municipalities have requirements that exceed the federal standards. The penalties for non-compliance can be severe, making it crucial to use an accurate time and attendance system. There are a variety of systems ranging from PC software to biometric time clocks. Many systems even offer productivity features such as job costing and multiple pay rates. Other time and attendance systems can even interface with HRMS technology and accounting software.
Payroll & Tax Processing
Beyond time keeping extends the mundane but critical business functions of payroll and taxes. Problems on payday damage employee moral and destroy productivity. Employers are now required to electronically file federal and state tax reports and payments. Therefore, it is paramount to ensure that payroll and taxes are processed and filed accurately. Given the complexity involved, it is obvious why payroll is the single largest PEO solution in American business.
A natural extension of this PEO solution, and another popular service, is outsourcing of employee benefit management. Read on to learn more about the role of employee benefits and the complexities it presents for U.S.-based businesses.