The time card calculator plays a huge role in computing the total work hours of employees and recording their start and end time. In fact, employers can use the weekly data report generated from the time card calculator to process their payrolls. Read this blog below to learn about the time card calculator and its significance in detail.
What Is Time Card Calculator?
A time card calculator is a tool that calculates the exact working hours of employees during a specific period considering their clock in / clock out and overall breaks time. In other words, you can input the start and end times of employees’ working hours for each day to calculate their total productive working hours for a stipulated period. It also gives insight into overtime hours an employee worked.
An online time card calculator is primarily used to calculate the exact compensation for employees based on their number of working hours in a week or month.
To use the time card calculator, you need to input the start time, break time, and end time for each day for a particular time period(week/month), along with the hourly pay rate. Some of the time card calculators also allow multiple aggregate breaks per day and auto-deduct breaks from total worked hours. Then, the timecard calculator generates the total working hours of employees and the corresponding compensation for that specific period. Besides, the time card calculator also generates printable reports that show the detail of time and wage calculations.
In addition, if you integrate an automatic time tracker with an online time card calculator, then it can automatically calculate exact employees’ productive working hours, eliminating any chances of timesheet fraud or over/underpaying.
So, whether you want to find the exact working hours of employees, ascertain the overworking hours, or calculate their wages for a certain period on an hourly basis, the time card calculator fits the bill.
Further, the time card calculators mostly comply with local labor laws. Hence, the wages are calculated according to the applicable local compliance rules.
Reasons You Need a Time Card Calculator
Saves Admin Time
One of the taxing tasks for admin or HR dept. is to collect the accurate working hours of employees and process them for payroll. It takes a good deal of time to process the time data and then calculate the wage for every employee after deducting break hours, holidays, etc. The time card calculator does the math for you by taking employees’ work hours and hourly pay rates and using it to calculate payroll while considering all factors like overtime, breaks, and holidays.
This way, the time card calculator frees up the admin’s time that can be engaged in different productive activities. Besides, a time card calculator in integration with automatic timesheets weeds out the chances of any human errors, and timecard tempering, as it automatically collects the time data of employees and calculates the remuneration.
Eliminate the Chances of Errors
When you have to calculate the accurate employee hours for payroll processing while considering all the factors like overtime, breaks, and holidays, then chances are there you will end up making accounting errors or miscalculations like misplacing the decimal. Wrong compensation calculations may result in employee disputes, incorrect paychecks, and even lawsuits. Therefore, the timecard calculator works as a one-size-fits-all solution, as it saves you from landing in hot water by ensuring that employees get paid appropriately to which they are entitled.
Accurate Billing for Clients
Submitting the bill to the client calls for an accurate estimate of the working hours you spent on that project. The Timecard calculator helps decipher how many hours were spent on different tasks of the project. The calculated bill generated from the time card calculator reflects the actual hours spent on the project without relying on any guesswork. You just have to enter the start and end times each day for the consecutive project time period, and the time card calculator will provide the exact invoice for the client.
Calculates Overtime Work of Employees
Employers might need to know the overtime hours of the employees. They can find it using the time card calculator. You can set the condition for overtime, like above 8 hours per day, or more than 40 hours per week, along with the overtime pay rate for payroll. The calculator will automatically calculate the overtime worked hours as well as the overall gross pay. Also, since everyone is using the same calculator, it eliminates ambiguity, and therefore employee disputes like whether someone worked more or fewer hours than others.
Ensures Projects Are Profitable
In any organization, business leaders need to ensure that the project they are working on is profitable. The time card calculator enables them to track their time and cost for each project and further break it down per task basis. With the help of this data, business owners can make prudent decisions like which projects are more profitable and which ones can be dropped to improve the organization’s overall competency and balance sheet.
Helpful in Improving Efficiency
Recording and calculating the time spent on different tasks of the project using a timecard calculator can help employees improve their efficiency. Time card enables you to discern the tasks of the projects that are taking too much time. Then, you can find an alternative solution for them to improve productivity and efficiency. For example, if an employee usually works for 40 hours per week but is logging in for 60 hours over the past few weeks, the manager can assess if there is any bottleneck and understand why this fragment of the project is taking more time than other ones.
Minimizes the Risk of Compliance
Different countries have unique labor laws requiring the wage to be calculated according to their local compliance rules. Most time card calculators comply with the local laws and therefore calculate the wage, overtime pay, etc, while clinging to these laws. Therefore, the time card calculator reduces the risk of compliance as well as liability with federal labor laws.
Discourage Time Theft
When you deploy an automated time and attendance system in integration with a time card calculator, you can prevent time theft in your organization and save a tremendous amount of money that could have been wasted due to false timesheet payrolling.
How to Use Time Card Calculator
There are many time card calculators available online which can be used to calculate exact employee time and also the wages according to the time worked. You can enter the clock-in and clock-out times for each working day along with the break time. You can set the wage rate per hour and the time period for which you want to calculate the wage. This way, the time card calculator will calculate the grand total working hours and gross pay for that stipulated period.
You can also calculate the overtime hours by setting the overtime conditions and calculating the pay by selecting the corresponding overtime pay rate. This way, you can calculate the wage and working hours of every employee of the organization and create and print individual reports of these calculations.