Time Clock Guide
Why use a time clock?
Time clocks are a shift management tool used by businesses and organizations to record employee comings and goings. Due to built-in security attributes, time clocks are able to guarantee that the times and dates stamped on the timecards are correct. Time clocks, often called punch-clocks, are easy to set up, transport and use.
Time clocks are primarily used to record employee attendance. The “honor system” of using hand written time cards is unreliable, inaccurate, and can waste thousands of dollars in extra labor costs because of extra time being claimed. Punch clocks also offer legal protection by providing documentation that proves what hours have and have not been worked.
Time clocks can be installed or mounted almost anywhere, including on countertops or walls. Time clocks and time attendance software can increase productivity, especially in payroll departments. Time clocks will automatically calculate the time worked, and TimeStation PC software, which allows employees to clock in through the computer, will generate labor, attendance and payroll reports that facilitate better time management.
Newer time systems eliminate the use of punch cards, instead using plastic cards with a magnetic stripe, like on a credit card. Employers will incorporate these magnetic strips on to a company photo ID card that employees can use to clock in and out. This data is stored in a computer or in the device that can retrieve for payroll and attendance calculations.
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Things to consider before purchasing a time clock.
How many employees do you have?
Your first consideration in choosing a time clock system should be how many employees you have and how many you project in the future. Since some time clocks are intended for low frequency use, and other PC attendance software is only able to handle to a limited amount of users. Choosing the correct time clock will save you time and money.
How much time do you want to spend?
High tech time clocks include biometric technology, which reads the features of the hand integrating security into employee time keeping. Digital time clocks will instantly calculate the total hours worked as employees clock in using their ID cards. Lower end time clocks stamp the date and time on a card but do not keep running totals and cards must be manually added up.
What kind of security do you need?
All time clocks have a degree of built-in security to prevent tampering. Manual punch card time clocks require a key to modify the setup options. This prevents manipulating time card records. Digital time clocks provide an additional level of security by eliminating paper time cards that could be altered. Biometric time clocks feature the highest levels of security. They eliminate “buddy punching”, co-workers punching in for each other, by requiring employees to clock in using a finger or palm print.
Where should you put the time clock?
It is recommended that time clocks be placed in convenient areas that are easy to access. At 5:00 p.m., when there is a herd of employees stampeding to clock out, you won’t want hallways or rooms being clogged with people.
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What are the different types of time clocks?
Punch Card Time Clock
Time clocks that use punch cards are the most widespread type of time clock on the market. A card with preprinted lines to separate entries is inserted into a slot. The card triggers a switch that activates the print head that prints the date and time.
Punch clocks are a good choice for small or mid-size companies because of their simple set up and use. Digital punch card time clocks can keep a running total of time worked. This is a handy feature when figuring payroll. Punch clocks usually include a key that is required for opening the setup compartment.
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Digital Electronic Time Clock
Digital electronic time clocks are a new innovation in time clock equipment. Slowly replacing the traditional punch-style time clock, digital time clocks store time in/out times electronically in the machine for later retrieval.
Some digital units have a touch pad for keying in a code that clocks you in and out. Others have a card reader that records the date and time when you swipe through a card with a magnetic stripe. Companies using this system will add a photo of the employee so the card can double as a company ID.
Digital time clocks keep a running tally of time worked to streamline payroll operations. Some digital time clocks have a computer and printer interface for downloading time data to the payroll department computer. Security features built into digital time clocks prevent any kind of tampering.
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Time Stamps
Time stamps are normally used to stamp the date, time or both on documents like records, contracts, and receivables. Time stamps are also used for tracking paperwork by modifying them to print words such as “received” or “sent”. They can also be used for employee time attendance purposes.
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Time Station Software
Time station software was designed to enable employees to sign in and out of work from a computer. They eliminate the hassle and cost of punch cards, and they save time in payroll by recording data to a database that can be retrieved as pay periods end. Some software only allows people to clock in/out from one computer, while others will allows entries from any employee terminal in the office. One of the biggest advantages of time attendance software is the ability to export time clock info. to payroll software such as ADP, PayChex, Peachtree, Quick Books Pro and more. Attendance software can also be used to generate reports on labor hours, vacation/sick time, potential overtime, and other shift management issuess.
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Biometric Time Clocks
Biometric Time Clocks are digital attendance systems that allows people to clock in/out by authenticating characteristics on a person finger, palm or hand print. Some units are also able to identify employees by measuring the dimensions of the hand.
These systems are convenient because they eliminate the hassle of using paper time or the cost of replacing plastic ID cards with magnetic stripes. It also adds an additional element of security to the workplace by reducing or eliminating unauthorized personnel. Since the employee must be present, it also eliminates employee fraud such as “buddy punching”.
Buddy punching is an unauthorized employee tampering with another employee’s timecard by clocking in/out for them, costing the company thousands in labor costs from unearned wages.
Biometric time clocks are compatible with time station software, allowing payroll workers to export time data to payroll software such as Attendance RX, Quickbooks, Paychex, Peachtree and more.
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Glossary
Alphanumeric - This is the ability to print both numbers and letters.
Backlit Display - Backlit displays on time clocks allow you to still see display in the dark.
Battery Backup - A battery backup keeps all your time clock information saved during a power outage.
Bi-Weekly Time Cards - These are time cards that store time clock info for up to two weeks.
Cylinder Lock - A cylinder lock protects setup information on time clocks. This prevents tampering and fraudulent work hours.
Die Plate - The die plate is what strikes a document, causing it to print. Die plates are used on time stamps. Custom die plates can be custom made for custom printing.
Digital Time Clock - Digital time clocks electronically store time clock info. They can be used through a key pad or by using a magnetic strip card.
Employee Capacity - Employee capacity is the amount of employees a time clock can handle.
Interface - The interface is the part of the time clock that the employee works with to either enter their information or stamp a card.
LCD Display - LCD stands for liquid crystal display. Many of the higher-end time clocks use an LCD display.
Magnetic Stripe - Some time clocks can read a magnetic strip, allowing an employee to clock in and out. The magnetic strip, like what you have on a credit card, can be encoded with several lines of information.
Monthly Time Cards - Monthly time cards are cards that are designed to be used on a monthly basis for monthly payroll.
Password Protection - The setup and operation, on some time clocks, can be protected by a password. This password must be entered correctly, in order to set up the clock.
Payroll - Payroll is the process of gathering time clock info. and figuring out how many hours an employee has worked. This is important for calculating paychecks.
Punch Card - A punch card is a specially designed sheet of paper. This sheet of paper is usually divided into a grid, including the days of the week and when you have punched in or out. You must purchase punch cards to be used in conjunction with a punch time clock.
Punch Time Clock - Punch time clocks keep track of time by using a punch card. This punch card is inserted into the time clock and is stamped . These stamped cards are used to keep track of employees numbers.
Ribbon - Most punch time clocks use a ribbon to stamp the date and time onto a punch card. These ribbons can be replaced once they wear out.
Timestation Software - Timestation software is used to keep track of employee hours through a computer. An employee can clock in and out through the computer.
Weekly Time Cards - Weekly time cards are used to keep track of employee time on a weekly basis. This is generally used for companies that pay their employees on a weekly basis.
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