T&A trends |
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| Calculating pay on the basis of actual hours worked is as old as the payroll profession itself, and is still one of the most common methods of computing pay. Josiah Wedgwood is credited with introducing the first time and attendance (T&A) system in the UK — with the tell-tale clock — and Edwardian accounting guides devote a great deal of space to the computation of gross pay.
The process of gathering the attendance data, matching the hours to the employees’ pay rates and performing the various gross pay calculations can be time consuming and complex to administer. The issue is still a significant business challenge, but today a comprehensive array of T&A systems exist to mechanise the capture of data, pass relevant information to payroll for processing and analyse attendance statistics. T&A systems usually operate as a stand-alone system independent of payroll software, although fully integrated systems do exist. The first test to apply therefore when buying a system is whether or not it will prove compatible with your existing payroll product: ask your payroll software supplier what systems they currently work with and whether there are any that they specifically recommend. Be cautious however of being steered towards a particular product if your software supplier stands to earn a Although clocking-in systems are traditionally associated with industrial factory-based businesses employing staff paid an hourly rate, in fact a wide range of businesses now need to consider whether a T&A system might provide the best solution to policing staff attendance. Office-based roles which operate on a flexi-time arrangement are often monitored via a T&A system in order to check compliance. Equally, the growth of zero hours contracts for casual staff mean that many employees are now paid solely on the basis of attendance. Information can be captured by the employee clocking into and out of the system using a clock card. Modern systems also offer the opportunity for biometric clocking, using hand or finger prints as the clocking method. These systems eliminate the opportunity for false clocking — the employee simply must be present at the time to make the recording. The need to record working hours accurately can extend to the middle and senior levels of any organisation. Tracking executive hours worked can assist in monitoring compliance with Working Time Directive requirements. Operating a T&A system linked to access can also allow you to monitor senior executive’s physical presence. This can be extremely useful if you need to count the days spent in the UK as part of the short-term business visitor scheme, in order to avoid UK tax residence being formed. The following checklist contains key areas to consider when buying a T&A system:
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