Manual data entry, for example, requires valuable time and resources from professionals who might otherwise be performing more strategic tasks. There is the obvious issue of lost money if a worker is overpaid, but Mathews emphasized other ways that inaccurate payroll can cost a business. Its most recent integration, announced last week, links into Thomson Reuters' payroll solution, allowing payroll professionals to automatically obtain and manage time tracking data when calculating and distributing wages.Īccurate paychecks are critical for any employer.
"There’s that problem of error and extra time taken to generate payroll."Īs with many B2B FinTech solutions, OnTheClock is addressing this challenge through integration and enhanced data sharing capabilities. "What that implies to us is that someone, somewhere is hand-keying in that data," he said. Mathews said that his company's own studies show that many clients were automating time tracking, but printing out physical copies of those time sheets to payroll. Use of an automated time tracking tool like OnTheClock can mitigate much of this risk for error and fraud – but not all of it. "We do have a portion of our accounts come out to us, and the story goes: 'My employee of 15 years, who I trusted, I just found out they've been stealing 10 hours a week from me,'" said Mathews. revealed payroll fraud to be the fourth largest type, yielding $9 million in lost funds for employers.Īnd that's just the payroll fraud that was eventually discovered and made public. federal court cases involving employee theft in the U.S. businesses an average of $1.13 million, with small and medium-sized firms making up the majority of those cases. Research published last year from Hiscox found that employee theft costs U.S. With an estimated 78 million hourly workers in the U.S., the risk of inaccurate or intentionally inflated hour recordings is vast. "That shifts the calculation down to the employee level," he said.
"If employees are not using an automated system, they’re coming from things like hand-written notes, word of mouth, texts, or no time tracking at all," he told PYMNTS in a recent interview, adding that many OnTheClock clients previously relied on employees to email or text their weekly hour calculations to managers. Two of the largest ways, errors and fraud, are "huge issues," said Dean Mathews, founder of time tracking solutions provider OnTheClock. This opens the door to more than one way a business can lose money. Many of these issues originate at the beginning of the payroll process with employee time tracking, a process that traditionally requires workers to track their own hours, placing the burden of accurate payroll on themselves. Lackluster reporting increases the risk of non-compliance with Department of Labor regulations, while legacy systems make fraud and inflated paychecks an easy crime. Cyberattackers are increasingly targeting payroll payouts, while manual data entry introduces the risk of errors. Payroll is facing risk exposure from all angles.
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