ATTENDANCE

and PAYROLL
PRICING AND COSTING

Williard Legrand
Bundy
TODAY, WE'LL LEARN ABOUT...

1. The importance of Attendance management system

How to track and store the attendance data in
2. real-time.
3. The various process and methods of payroll system
ATTENDANCE AND
PAYROLL
Attendance and payroll are two related aspects of managing
employees in an organization. Attendance refers to the
tracking of an employee’s time and attendance, while payroll
refers to the calculation and disbursement of wages and
salaries to employees.
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ATTENDANCE
MANAGEMENT SYSTEM
An Attendance Management System is a process to track
and document the time spent by an employee at work. It also
helps organisations comply with the state’s statutory laws by
maintaining log details and making the payroll processes
efficient and stress-free.

 With the advancement of technology, Attendance

Management has transformed over the years.
Today, automated attendance systems are much
more efficient and error-free than manual
attendance tracking systems (which were in the
form of paper attendance registers, time clocks,
and spreadsheets). Digitised attendance
management mechanisms are available in various
options ranging from on-premise software to cloud-
based solutions with real-time analytics and
reports. These options help organisations track the
number of hours worked by each employee, leaves
taken, overtime worked etc. To analyse employee
productivity and compensate them appropriately.
3 CATEGORIES OF AMS

1. MANUAL SYSTEM
A manual time and attendance system may work if the
employees are significantly less in number. Maintain
Daily / Weekly timesheets and record log details, and you
could calculate and verify the time manually. During
payroll calculations, you would figure wages or salary
payable and deductions manually.

Manual time and attendance systems assume a huge

degree of trust between employees and employers. It
requires employees to fill out their hours accurately and
honestly and not carry out time theft or buddy punching.
ADVANTAGES OF MANUAL
SYSTEM
Cheap – Manual time and attendance measuring systems
don’t require any hardware or software, making it an initial
saving. However, as data is recorded manually, it can be
easily manipulated. Employees may put the wrong
information to garner extra wages. Therefore, it may end up
costing you more in the long run

Simple to use – The perception is that manual time and

attendance systems are easier to use. While the level of
familiarity makes this true, the emergence of biometric time
and attendance means that automated time and attendance
may now have the edge. Clocking in and out is as simple as
using your fingerprint or facial recognition.
ADVANTAGES OF MANUAL
SYSTEM
Resistant to power outages – In the rare instance
of a power outage, manual time and attendance
systems have the upper hand. However, if you
use an automated time and attendance system
that’s connected to the cloud, the daily backups
will circumvent this issue.
3 CATEGORIES OF AMS
2. AUTOMATED SYSTEM
An automated or computerised system involves the
use of technology. Time clocks let employees clock
in and out via access cards, swipe cards, clock cards,
fingerprint scanners etc. It calculates work hours
based on pre-set parameters. Supervisors and
managers can also track their employees’ time via the
automated system. This system enables you to
export or transfer the logged time into payroll
software, which is used to process the payroll.
TYPES OF ATTENDANCE
TRACKING SYSTEM
1. MANUAL RECORDING
- manual recording has been utilised over the years as a
standard for attendance and time tracking, either in the form
of a register or excel document.

2. TIMESHEETS
- timesheets require the employee to track and record the
time they take to complete a specific task. This is specifically
used for time management purposes
3. MECHANISED SYSTEMS
- with this kind of system, inputs are utilised to automatically
generate records related to the in and out times clocked by
employees.

4. TIME CARDS
- this is the new digital spin on the traditionally used punch
clock. A timecard system automates time tracking using a
timecard which employees will need to swipe.

5. BIOMETRIC SYSTEMS
- are an innovative time and attendance tracking system that
utilises facial recognition, fingerprints, eye scanning, and
more to ensure that the right person is clocking in to the
correct location.
6. PROXIMITY CARD READERS
- these tracking systems rely on different readers
that will scan and identify employees’ cards. These
not only track clocking in and out but your
employee’s movements in the workplace as well.

7. ACCESS CARDS/SWIPE CARDS

- these cards are used to provide access to the user

after swiping the card. It stores the data on a
magnetic stripe, and it is also called a Magnetic
stripe card.
KEY FEATURES ATTENDANCE
MANAGEMENT SYSTEM
1. CLOCKING IN AND OUT
this is a must have as employees will need to remotely
clock in and out as well as register their breaks periods.

2. LEAVE MANAGEMENT
employees need to have a way to provide operations
managers with their leave days so that when schedules
are created, there is little chance of scheduling an
employee who is on leave or sick leave. This system
should make it easy for an employee to register as on
leave or apply for special leave.
3. PAYROLL INTEGRATION
is critical to the effective management of elements
related to employee payments, overtime, leave, paid time
off etc. The system should automatically pull this
scheduling information into the payroll system.

4. SCHEDULING
this system should allow you to manage and create
workforce schedules and rosters efficiently. This system
should take into account your business contracts as well
as your employee’s personal information.

5. REPORTING
reports provide essential information related to your
business, including employee productivity, attendance
data, absenteeism, overtime, work hours, labour costs
and more. With this insight, you can make informed
business decisions to better the business.
PAYROLL
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HOW PAYROLL
SYSTEM
WORKS?

Payroll systems manage everything having to do

with the process of paying employees and filing
employment taxes. They are put in place to keep
track of worked hours, calculating wages,
withholding taxes and other deductions, printing
and delivering checks, and paying government
employment taxes.
PAYROLL
PROCESSING
Payroll processing in HR is an elaborate process that
involves a lot more than salary calculations. Payroll
processing is an essential business function that involves
arriving at the ‘net pay’ of the employees after the
adjustment of necessary taxes and deductions. For
efficient payroll management process, the payroll
administrator needs to plan the payroll process step-by-
step.
 STAGE 1 PRE-PAYROLL ACTIVITIES

1. Defining Policy
In these beginning stages, it is important
to establish a company’s policies such
as a pay policy, leave and benefits policy
and attendance policy.
 2.
Gathering input data
Interacting with multiple departments and
payroll is often an integral part of the payroll
process. These are the people who can give you
more access to important information like mid-
year salary revisions and attendance data.
 3.
Input validation
The next step in the process is checking the validity of the
input data and whether it adheres to company policy. This
is the time to make sure no active employee has been
missed and no inactive employee has been included in the
salary payment.
 STAGE 2 ACTUAL PAYROLL PROCESS

4.
Payroll calculation
This is the stage in the payroll process where input data is put into the
payroll system to actually process the payroll. This process results in
net pay being generated after adjusting necessary taxes and deductions
 STAGE 3 POST-
PAYROLL PROCESS
REPORTING
STATUTORY PAYROLL
After you’ve completed payroll for a COMPLIANCE ACCOUNTING
particular month, your finance
department or management team At the time of processing all It is important that every
might ask for a report on things like statutory deductions like organization keep a record
department employee costs or EPF (Employee Provident of all its financial
location employee costs. Fund), TDS (Tax Deduction transactions for the payroll
A payroll administrator will need to at Source), and ESI process.
gather the data and extract the (Employee State Insurance)
required information to share these are deducted.
reports. PAYOUT

Salaries can be paid out by cash, check, or bank

transfer. Typically, employers deposit salaries directly
into an employee’s bank account.
WHAT IS PAYROLL
SOFTWARE ?
Payroll software is an accurate
solution that meet your
requirements and simplifies the
payroll processing for your
business.
2 TYPES OF PAYROLL
SOFTWARE

1. Desktop Payroll software

- it is installed on your desktop
2. Cloud Payroll software
- it is stored in the cloud.
BENEFITS OF PAYROLL
SOFTWARE

• Cost-effective
• Saves time
• Generate Payslips
• Ease of use
• Added data security
• Reduce errors
• Increase effiency and productivity
PAYROLL PROCESSING METHODS
1. Spreadsheets
Many businesses at their initial stage of operations find
spreadsheet-based payroll management convenient because
they only have a handful of employees to manage.

This method involves calculations using standard templates,

that have set mathematical formulas for the salary and
compliance payment computations.

While this is a cost-effective method, it’s not suitable for

businesses when their employee count increases. Also, the
opportunity cost of using a traditional system over automated
methods is very high.
2. Outsourcing
Payroll outsourcing means entrusting your payroll execution
to an agency. A lot of businesses that don’t have dedicated
personnel opt for outsourcing.

Based on their payroll cycle, they provide the agency with

salary information and other data such as attendance, leaves,
reimbursement details, etc. every month. The agency then
calculates dues and is also responsible for complying with
statutory compliances.
3. Automation
Automated payroll software will do away with all the
challenges of using spreadsheets or outsourcing it. There are
many payroll automation tools and software available in the
market which can reduce manual efforts and increase
efficiency.

Apart from carrying out payroll computations, the software

needs to be updated with the latest compliance laws
PAYROLL APPLICATIONS
• ADP •Patriot Software
•Gusto •Xero
•Paychex •Toast Payroll
•Sage 50cloud •Zoho Payroll
•Paycor
•EPAY Systems
•OnPay
 Reference
https://www.freshbooks.com/hub/accounting/how-payroll-systems-
work#:~:text=Payroll%20systems%20manage%20everything%20having,and%20paying%20government%20employment%
20taxes.
https://www.betterplace.co.in/blog/3-stages-of-payroll-processing/
https://razorpay.com/payroll/what-is-payroll/
https://www.zimyo.com/resources/insights/advantages-of-using-attendance-management-system/
https://timerack.com/blog/manual-vs-automated-time-and-attendance-systems/
THANK
YOU!