Payroll and Time and Attendance - What is the Difference?

Time and attendance and payroll are two important aspects of managing any business.

Both are essential for ensuring that employees are paid on time and accurately. However, they are very different processes and it is important for business owners to understand the distinctions between them.

Time and attendance refers to recording the hours worked by an employee, as well as calculating the employee’s vacation time or other absences.

Payroll, on the other hand, is the process of calculating employees’ salaries or wages after accounting for all of their time worked and hours off.

Time and attendance is usually managed through a time clock, time sheet software, or a manual system. This type of system helps to ensure accuracy and efficiency when it comes to tracking employee hours and data.

Payroll, on the other hand, is managed by a payroll processing system. This type of system uses the data collected in the time and attendance system to calculate employee wages and generate reports. In summary, time and attendance and payroll are very different processes.

There are rare examples of payroll systems that do have embeded time and attendance but even then, they generally cannot collect from time clock hardware and it is this hardware that dramatically improves the acuracy of employee attendance recording.

Time and attendance is used to accurately record employee hours worked, while payroll is used to determine employee wages based on those hours. Understanding the differences between these systems is essential for any business owner to manage their employees efficiently.

If you have any questions regarding time and attendance and how it works along side your payroll software then I can be contacted using the details below.

Time & Attendance Consultant

jimc@timeandattendance.com.au

1300 553 254