managing people, payroll & time


How to Track a Fair and Honest Overtime System


Are you an Australian business owner looking for a reliable way to track employee hours? Look no further than SME Solutions. Here at SME Solutions, we have several services to help employers keep track of employee's attendance. When sorting employee timetables yourself, there's always the risk of human error. Too often, we meet business owners who have lost money by miscalculating employee's hours wrong or writing them down inaccurately.

Employee attendance software can do wonders in saving you money. And, it can help ensure that your overtime system has fairness and integrity built into it. This is infinitely more efficient than any other alternative. It will save you time, money, and headaches. Accurate time tracking is necessary not only for your employees' benefit but to make sure you’re in compliance with federal regulations.

So how do you keep track of fairness and honesty in a payroll overtime system? We break it down below.

What Makes a Good Overtime System?

A good overtime system is one that accurately tracks the time that employees work beyond their contracted hours - no more, no less. This ensures that workers are paid what they're due, ultimately leading to a happy and productive workplace for everyone. Workers feel valued and employers benefit from staff wanting to work at their establishment.

In Australia, the standard workweek is 38 hours long, or 7.6 hours a day. Any time worked over this is considered “overtime”. Compensation for overtime should be at a premium of 1.5 times the ordinary rate of pay for the first 3 hours. It is double the ordinary rate after that. Payouts for weekend work are also at a premium rate. 

Sometimes, employers don't enforce a good overtime system. To demonstrate they are hardworking, employees may sometimes not log overtime hours. Some employers may subtly encourage this attitude. Even for employees who agree to a straight pay for hours worked over full-time, paying anything less than the designated rate can be a violation of federal law.

A good overtime system is the difference between a positive work environment and a negative one. The incorrect management of overtime hours can lead to lawsuits, low morale, and reduction in productivity.

Why Monitor Overtime Hours?

Monitoring overtime hours is essential for operating a business. It goes beyond establishing a positive company culture. By tracking overtime, you can identify patterns and track the reasons for necessitating overtime such as:

  • Is it the same people consistently putting in overtime?
  • Do you need employees to work more hours due to staffing shortages?
  • Are heavy project loads the cause of requiring employees to work extra?

With this knowledge, you’ll be able to reallocate resources or determine how to reduce the number of hours worked and save money.


Time Tracking Systems

SME Solutions can help when it comes to tracking employee’s overtime hours.

The easiest way to track overtime hours is to use a mobile or web-based tracking service, like one of the ones we offer. With an automated time tracking system, you can easily monitor patterns.

An automated system also ensures honesty. It prevents timesheet rounding since the clock-in/clock-out times will always be exact. 

SME Solutions

Employee Time Solution is our recommended time/attendance tracking software. It does more than simply track employee’s hours. It also delivers HR and admin features like scheduling, labour allocation, job costing, and rostering.

Our software offers you the ability to see all your employee’s time clock information in one place including:

  • Requested days off
  • Availability
  • Benefits (including paid time off and vacation)
  • Progress of projects
  • And more

Our Employee Time Solution also is convenient for businesses because it is web-based. This means it doesn’t require client-site installation. This saves time and money when it’s time to install updates. 


Employee Time Solution Benefits

What are the benefits offered by Employee Time Solution? This system will empower you to:

  • Eliminate errors and oversights on payroll processes by automating the time-tracking calculation 
  • Automatically assign schedules based on employees’ imputed availability and requested days off to ensure complete shift coverage
  • Allow remote workers to clock in/out while they are on-the-go on a PC or mobile
  • Allow employees to log specific hours worked on a project to track projected completion 
  • Transform scheduling from a tedious task to one that is simple, intuitive, and efficient

Our services offer more than just ease of time-tracking. They have the potential to improve the overall culture of your workplace. Workplace environments that are more accurate, organised, and consistently reduce stress levels of both employers and employees.

The time that you’ll save from no longer having to create schedules and count hours will translate into time spent on growing your business and relationship with your employees. 

Improve Your Time Tracking Today!

Don’t waste any more time hand-writing time sheets or calculating hours yourself. SME Solutions can help you upgrade your business model and propel it forward to the next big project. Implementing our software will help give your company what it needs to become more efficient.

Contact us to discuss about payroll processing services for your business. Make the decision to improve your employee time tracking today with SME Solutions! 


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