• Prevent buddy punching and time theft
• Track employee mileage to and from job sites
• Monitor freelancer and contractor locations throughout the day

GPS time clocks are powerful tools that can simplify time tracking and foster greater trust and accountability between managers and employees. But not all solutions provide the same features, ease of use, and built-in tools for managing and communicating with team members. 

The last thing you want is to settle for a GPS time tracker that’s a hassle to use and doesn’t have the features your small business needs. That’s why we reviewed and compared the six best GPS time clock solutions of 2023 and broke each one down by use case, top features, pros and cons, and pricing.

Key features to look for in GPS time clocks

GPS technology has made modern-day time clocks more accurate than they were in the past, but not all apps use it in the same way. On top of that, some GPS time clocks come with extra (costly!) features that may not necessarily be relevant to your business. The most effective time clocks offer:

• Wide accessibility — Late clock ins and clock outs sometimes happen because of a limited number of punch in options. But if you download a GPS time tracker that can be accessed from any device, your team’s phones, tablets, and computers transform into easy-to-access time clocks.
• Time theft prevention —  GPS timestamps show managers where employees clock in and out, allowing them to follow up if team members sign in from anywhere unusual. As an extra security measure, many time clocks offer geofencing, which restricts team members from punching in until they arrive at work. 
• Reminders and alerts — Mobile app notifications can save you from issues like accidental overtime or no shows. Platforms like Homebase can send you alerts when an employee is late. They’ll also remind staff about upcoming shifts and let them know when they’ve forgotten to clock out — all without you having to interfere. 
• Timesheets and payroll — Why export time tracking data to third-party platforms if you don’t have to? Solutions like Homebase instantly convert employee hours into time cards and take care of wage calculations for you. They also let you run payroll and pay employees directly from your phone, saving you hours of work every payday.  
• Team management tools — Interconnected staff management features for team communication, scheduling, employee happiness, and HR and compliance make running a busy small business easier. With everything in one place, you’ll stay more organized and feel less scattered. Plus, you’ll avoid spending money on multiple apps.
• Free or affordable plans — Most time tracking apps have a free plan that offers basic capabilities, but you may not be able to use the GPS tools until you upgrade to a more advanced plan. Still, it’s possible to find solutions with budget-friendly premium pricing. And as long as you opt for software with per-location rather than per-user pricing, your subscription cost won’t go up as you hire more team members. 

Our top pick for GPS time clocks in 2023 (+ the rest compared)

Homebase is the most comprehensive GPS time clock solution on this list, which is why it’s an obvious champion. Its easy-to-use features for GPS time tracking and geofencing integrate with full-service payroll, team chat, hiring and onboarding, and HR and compliance tools to cut down on your need for excess software. Our platform is affordable, too — the per-location pricing means your subscription stays the same even as your team grows.

Still, no two businesses have the same goals, which is why you may find other options on this list more relevant to your own circumstances. For example, if you’re looking for enhanced time theft prevention measures, you may find Buddy Punch a better fit. Or, you might opt for QuickBooks Time, which syncs with QuickBooks accounting software and lets you monitor your multi-location mobile teams in real time. 

To make your research less overwhelming, we’ve sorted our recommendations based on best use case:

1. Homebase: Best all-in-one solution
2. Buddy Punch: Best for time theft prevention
3. QuickBooks Time: Best for moving teams and work crews
4. Connecteam: Best for employee safety
5. Hubstaff: Best for monitoring productivity
6. Clockify: Best for tracking billable hours

Comparison chart: Top 6 GPS time clocks in 2023

Software	Pricing	Free plan	Mobile app	GPS time clock	Time tracking	Scheduling	Payroll
	Plans range from free to $99.95 per location per month.   Save 20% on all plans if you sign up for annual billing.	✓	✓	✓	✓	✓	✓
	Plans range from $3.49/month per user to $4.49/month per user, plus a base fee of $19/month.	✗	✓	✓	✓	✓	✗
	Plans range from $30/month to $200/month.	✗	✓	✓	✓	✓	✗
	Plans range from free to $119/month.	✓	✓	✓	✓	✓	✗
	Plans range from free to $15 per user per month.	✓	✓	✓	✓	✓	✓
	Plans range from free to $14.99 per user per month.	✓	✓	✓	✓	✓	✓ — reports only

A breakdown of the 6 best GPS time clocks

1. Best all-in-one solution: Homebase

Homebase is an all-in-one team management and HR solution built for small business owners with hourly employees. And our app puts the power of GPS in your hands with our free mobile time clock, which offers both timestamping and geofencing functions. 

All in all, Homebase can act as your central small business command hub, providing all the tools you need for scheduling, hiring, team communication, and HR and compliance. 

Top features

• GPS time clock for tracking where employees punch into work
• Geofencing to restrict clock in areas 
• No show, late clock in, and late clock out alerts for managers
• Built-in team messaging so managers can follow up after late sign ins
• User-friendly schedule builder with auto-scheduling and template tools
• Hiring and onboarding templates, dashboards, and workflows
• An extensive library of HR templates, guides, and training materials
• Native, full-service payroll

Pros and cons

Homebase users love how simple the platform makes timekeeping, allowing them to easily transition from manual time tracking systems or on-premise devices. And when employees clock into work, the app takes a GPS timestamp to make sure they’re starting their shifts at the right location. This is useful for busy managers and business owners who spend a lot of time offsite, and it’s perfect for multi-location businesses and remote teams as well.

Unlike many GPS time tracking apps, you can access almost all of Homebase’s features from your mobile device. This means managers can create and publish team schedules, communicate with staff, recruit and screen job applicants, and pay employees without having to stop by the office. 

And although Homebase doesn’t offer mileage tracking for team members who commute, our time clock notifies managers when an employee is late or forgets to clock out, preventing unexpected overtime and labor leakage. 

Pricing

Homebase offers basic scheduling, time tracking, and messaging features for free for up to 20 employees at one business location. Otherwise, paid plans include:

• Essentials — Advanced scheduling, time tracking, and communication tools for $24.95 per month per location.

• Plus — Hiring, time off controls, and departments and permissions for $59.95 per month per location.

• All-in-one  — Employee onboarding, labor cost management, and HR and compliance for $99.95 per month per location.

You can add payroll tools for an extra $39 per month plus $6 per employee. And right now, you can save 20% on all plans if you sign up for annual billing.

2. Best for time theft prevention: Buddy Punch

Buddy Punch is a time tracking solution with a variety of tools designed to give business owners more control over time theft and productivity gaps. Besides GPS-enabled time tracking, Buddy Punch is equipped with tools like geofencing, webcam selfies, and IP address locks to keep mobile teams focused and accountable. 

Additionally, the platform offers features for employee scheduling and full-service payroll so managers can keep all of their time, attendance, and pay data in the same place.

Top features

• GPS timestamping
• Geofencing and webcam clock ins to make sure the right people are signing in at the right work locations
• IP address locks to prevent employees from logging in from the wrong device
• Time card maps to give an overview of GPS clock ins for a specific time period
• Drag-and-drop schedule builder
• PTO accrual management
• Full-service payroll

Pros and cons

When employees clock in with Buddy Punch, their GPS coordinates immediately appear on their time cards so managers can review them later. Consolidating clock in data is also handy because it allows management to spot and address unwanted attendance trends before they get out of control. 

Buddy Punch customers also appreciate additional time theft prevention tools like webcam selfies and IP address locks, which are features that stop employees from using specific devices to sign in.

And although some users find Buddy Punch’s mobile customization options limited, they still appreciate how straightforward it is to track time from any device or location. 

Pricing

Buddy Punch scheduling is $3.49 per month per user, and it’s $4.49 per month per user to add scheduling. Both plans have a base fee of $19 per month.

3. Best for moving teams and work crews: QuickBooks Time (formerly TSheets)

QuickBooks Time (formerly TSheets) is a practical option for business owners who are already familiar with the Intuit and QuickBooks family of products for accounting, bookkeeping, and payroll. As a time tracking solution, it has GPS time tracking, scheduling, and timesheets for payroll preparation in one convenient platform.  

Top features

• GPS location tracking
• GPS mileage tracking
• Geofencing functions
• Scheduling capabilities
• Mobile time tracking app
• Integrates with the QuickBooks suite of tools for business accounting

Pros and cons

One of QuickBooks Time’s most notable features is its automatic GPS mileage tracking for tracking travel distances, which is handy for teams that spend a significant amount of time on the road. 

It’s also a useful platform for landscaping and contracting businesses, where employees often move between job sites. Once staff punch in with QuickBooks Time, the time clock records their locations and updates them throughout the day, so supervisors can always keep track of their teams.

QuickBooks users also say they benefit from tracking time for projects, tasks, and subtasks because it gives them more granular timekeeping data and helps them improve efficiency for the future.

One downside is that QuickBooks doesn’t have a free plan. You have to pay per user to access basic time and attendance features, which may not be feasible for every small business’s budget.

Pricing

Quickbooks has a free 30-day trial. After that, the paid plans include:

• Premium — Time and attendance features for $20 per month and $8 per user per month.

• Elite — Project tracking and geofencing for $40 per month and $10 per user per month.

4. Best for employee safety: Connecteam

Connecteam gives managers access to tools for scheduling, time tracking, communication, and labor compliance from their mobile devices, which helps them keep field-based and frontline teams on the same page. And with its GPS time tracking tools, supervisors can make sure their employees are where they should be at any time of the day.

Top features

• GPS-enabled time tracking
• Geofencing and time theft prevention
• Shift reminders and alerts
• Schedule builder with shift duplication and template tools
• Task management with forms and checklists
• Team messaging
• Labor and compliance tools
• Team member information and document storage
• Employee surveys

Pros and cons

Like Homebase, Connecteam lets you set up a geofenced radius around job sites to restrict off-site clock ins. The platform also uses Breadcrumbs GPS tracking technology to monitor employee locations throughout the day, a feature that uses less battery and cell phone data than geofencing, which monitors workers constantly.

You may prefer Connecteam for those times when team members are left to hold down the fort alone. With alerts letting you know when staff step out of the geofenced work zone, you can always check in via messaging to make sure they’re okay.

However, unlike other GPS time clocks, Connecteam doesn’t have built-in payroll. That means you’ll need additional software to calculate wages and pay your team. 

Pricing

Connecteam has three “hub” packages: Operations, Communications, and HR & Skills. 

The Operations hub offers scheduling, time tracking, and task management features, and its plans include:

• Small Business — Free for up to ten users.
• Basic — $29 per month for up to 30 users. Extra users are $0.50 per month.
• Advanced — Everything in Basic, plus extra features like time tracking tasks. $49 per month for 30 users. Extra users are $1.50 per month. 
• Expert — Everything in Advanced, plus GPS features and automation. $99 per month for 30 users. Extra users are $3 per month.

5. Best for monitoring productivity: Hubstaff

Business owners may opt for a platform like Hubstaff if they have complex projects or client work that require accurate time and productivity tracking. In addition to its GPS time tracking and geofencing tools, Hubstaff includes employee monitoring and project management software among its wide range of features, making it a unique alternative to other solutions on this list.

Top features

• GPS location tracking
• Geofence time tracking
• Online timesheets for payroll preparation
• Employee activity and productivity monitoring tools
• Agile project management tools and workflows
• Full-service payroll and invoicing

Pros and cons

Hubstaff’s GPS location tracking allows for more accurate timekeeping data, and its geofencing tools automatically punch employees in and out of work so you never have to follow up on late clock ins. 

And while some team members may find it invasive, Hubstaff’s employee monitoring tools let managers track staff’s keyboard and mouse activity to determine productivity levels. They can even activate the screenshots tool to get a glimpse of how people spend their time at work. 

Keep in mind: Get consent from team members before tracking their activity and make sure you’re clear about how you’ll use the data. If employees feel uncomfortable about being monitored remotely, this may not be the right fit for you.

Pricing

Hubstaff has three subscription packages, each with its own range of plans: Hubstaff Time, Hubstaff Desk, and Hubstaff Field. 

Hubstaff Time offers basic time tracking and reporting and Hubstaff Desk offers employee monitoring features, advanced time tracking, and time management.

Only Hubstaff Field has GPS time tracking features and the paid plans include:

• Field Pro — Advanced time tracking and GPS mobile monitoring for $12 per user per month.

• Desk Field — Everything in Field Pro, plus advanced employee monitoring tools for $15 per user per month.

6. Best for tracking billable hours: Clockify

With its in-depth tools for online time and project tracking, Clockify is well-suited to desk-based teams, especially those that need to keep tabs on their billable hours. Its simple design also makes it easy to navigate when you compare it with other well-known project management software.

Top features

• Time and project tracking
• Scheduling 
• GPS activity monitoring
• Reporting and analytics dashboards
• Expense and invoice management
• Timesheets and payroll reports
• Integrates with QuickBooks, Slack, Trello, Asana, and dozens of other tools

Pros and cons

Clockify customers say it’s easy to use and helps keep client projects organized. The platform makes tracking team productivity simpler, too — when employees punch into work with Clockify, managers can see their locations and timestamps on the map throughout the day. And similar to Hubstaff, Clockify can take screenshots of people’s devices at certain intervals to track the sites they visit.

One drawback, though, is that Clockify doesn’t offer free scheduling — you have to upgrade to a paid plan to access those features. And it lacks full-service payroll, which forces users to rely on a QuickBooks integration to pay employees.

Pricing

Clockify’s free plan has basic time tracking capabilities, but you can upgrade for more advanced features. Plans include:

• Basic — Time off management, invoicing, and timesheets for $6.99 per user per month.

• Pro — Scheduling and labor forecasting and budgeting for $9.99 per user per month.

• Enterprise — Advanced control and security for $14.99 per user per month.

Simple, precise time tracking is at your fingertips with Homebase

GPS time clocks are meant to make your life easier — customizing and setting them up shouldn’t become a job on its own. And while every platform has its own way of harnessing the power of geotracking and geofencing, they won’t all be right for your business.

Homebase integrates easy-to-use GPS time tracking technology with feature-rich team management tools, making it our number one pick in 2023. Try our free plan first to test basic scheduling, time tracking, and messaging features for up to 20 employees at one business location. Then, you can upgrade to get access to GPS timestamping and geofencing. 

Once you have one of our affordable paid plans, you’ll be able to enjoy our other tools for hiring and onboarding, team communication, and HR and compliance — all of which make Homebase ideal for motivated small business owners with wage-earning employees looking to grow and thrive.

**The information above is based on our research on GPS time clocks. All user feedback referenced in the text has been sourced from independent software review platforms, such as G2 and Capterra, in April 2023.

The post The 6 best GPS time clock solutions in 2023 appeared first on Homebase.

Whether you’re tackling timesheets via the pen-and-paper route or going digital with your data, there’s a lot to keep track of. Timesheet templates are useful to track time worked, time off, breaks, shift swaps, and labor laws—just to name a few.

The good news? There’s an easier way to do it all, and do it right.

What’s a timesheet?

A timesheet is a tool used by an employer to track how much time an employee spends on their work. Sometimes referred to as “time cards”, a timesheet is like a record of clock ins and clock outs for hourly employees. It’s used to track employees hours and time entries and calculate payroll for employees based on the time they’ve worked. 

Traditionally, hours are tracked within a table on a sheet of paper. But since it’s 2023, smart businesses use a more modern approach to turn timesheets into digital spreadsheets or documents with real-time functionality. Digital timesheets can save you hours by automating calculations that are necessary for payroll based on billable time. This means less manual data entry and easier payroll prep. 

The pros and cons of using timesheets in the workplace

Timesheets can be a tedious part of a workplace, but they’re a critical part of running a business—and paying your employees, of course. Here are the pros and cons of dealing with time sheets. 

Pro: Timesheets keep you organized

There’s a lot that goes into running a business, and tracking time for every employee is one of those things. Although it can be time consuming, timesheets are a great tool for keeping you and your team organized. This is especially true when it’s time to plan the next schedule or complete payroll.

Do you have hourly employees? Then you’ll find digital timesheet templates particularly useful. Timesheets and other time tracking tools are often used to break down working days and monitor how much time employees spend on specific tasks and various projects.

Knowing specifics around these pieces can help you plan ahead and pay your team quickly and accurately.

Pro: Timesheets keep you compliant

Timesheets can help keep you compliant by accurately tracking hours. This way, you can be sure that breaks and overtimes are compliant with city, state, and federal labor laws. Depending on the timesheet template or tool you’re using, you can even store your time cards and all edits to comply with the Fair Labor Standards Act’s record-keeping rules.

If you’re using Homebase, your timesheets act as a compliance tool. You’ll get a text message when an employee is about to hit overtime, save hundreds of dollars a month by preventing early clock-ins (otherwise known as time theft), forecast your labor costs as you schedule, and track overtime across multiple locations. You can also track time off accruals, set different policies per regulation or different paid time off policies per employee, and manage all of your time off requests in one place. 

Pro: Timesheets keep you in control of labor costs

You might think that the cost of labor is simply about how much an employee makes. The actual definition offers a bit more clarity on what you’re really paying for. 

The cost of labor is the sum of all employee wages paid, plus how much it costs to provide benefits, like health insurance and paid time off, as well as how much needs to be paid in federal and state payroll taxes. 

Timesheets can help you understand the full price of your labor costs, and how to keep them in line with your budget. If you’re using a timesheet tool like Homebase, you can prevent labor leakage, reduce time theft, prevent overtime, and set labor to sales targets.

How? An automatic time clock works with your timesheets to calculate total hours, paid and unpaid breaks, and overtime. It also tracks salaried employees and calculates non-exempt salaried overtime, so you can get back in control of labor costs. 

Con: Timesheets can get messy

Timesheets are a helpful tool to getting organized. But because there’s so much that goes into them, they can get messy and complicated.

If you’re using a paper-and-pen method or a spreadsheet, your timesheets can become filled with errors. And those errors can add up and cost you time and money.

Without an accurate way to track hours worked, managers might miss essential information like breaks taken, paid time off, sick days, or even late clock ins-and-outs. In fact, 20% of every dollar earned by a U.S. company is lost to time theft. Time theft is the act of employees taking unauthorized company time without using paid time off or paid sick leave, whether intentionally or unintentionally. 

This mess can be easily prevented with the proper tools and software that focus on managing hourly workers—so you don’t have to. 

Con: Timesheets take time

It might seem a little backwards, but it’s true. Though timesheets help you stay organized and compliant, they take a lot of time to collect, complete, and review. Emphasis on “a lot,” especially if you’re using the paper method of tracking time.

Timesheets require everybody to stay up-to-date and on track of their schedule. That means employees need to be actively tracking when they’re clocking in, when they’re taking breaks, when they need time off, and when they leave their shift. It also requires you to make sure that all time is being tracked properly.

After collecting timesheets—which is a job on its own—managers and owners need to ensure that the times recorded are correct. This involves a lot of due diligence and organization, not to mention coordination and communication with your team.

Feeling overwhelmed already? Don’t worry: there’s an easier way. 

Your free timesheet template

A timesheet template is a document with a predefined page layout that allows you to record employee working hours, breaks, and time off a bit more easily. It includes elements like:

• Employee name
• Date 
• Number of hours worked
• Hourly pay rate
• Task or shift 
• Clock in and clock out times
• Overtime 
• Paid and unpaid breaks 
• Paid or unpaid time off 
• Estimated wages per employee

Timesheet templates give you the basics of what you need to keep work on track and stay compliant with state and federal labor laws. Plus, with a timesheet template, you don’t need to create your own from scratch. Crisis averted.

The best news? Homebase gives you free timesheet templates so you know exactly how much your employees should get paid, how many hours they’ve worked, and whether or not they’ve accrued any overtime. 

Homebase’s timesheet templates are specifically designed for how you do business. Our templates don’t include any wage rate information, so your managers who don’t have access to wage rates can still fill out the timesheets. We also get that your employees can work a bunch of various roles with different wages for each, and our template takes these differences into account so you can calculate various rates with ease. 

How to effectively use timesheets at your business

If you’re looking for the how-to of effectively using timesheets at your business, you’ve come to the right place. The first way to effectively use timesheets is to simply use them to keep an accurate record of the hours your employees work. This practice ensures that employers pay their team the right amount, which means neither you nor your employees end up out of pocket.

Most businesses use some kind of timesheet system to track employee time, but there’s a range of different ways to do so. For example, some employers still use paper timesheets and online documents like Excel and Microsoft spreadsheets, while others use a less modern-way, like a check-in binder.

But if you’re using either of those timesheet options, it’s time for a change. 

Go automated with your time tracking

Consider joining thousands of small businesses who’ve found an alternative, and easier way, to do timesheets. By using a digital time tracking software, like timesheet apps, you’re choosing a more robust time-tracking solution that lets you eliminate repetitive tasks like entering hours worked, and do so without the cost and commitment of hiring a dedicated human resources manager.

Automatic employee time tracking will also save you hours on payroll every pay period. With a free integrated time clock, you can easily track employee work hours and transfer the data to your preferred payroll integration.

These solutions to timesheet troubles also offer ways to ease your scheduling woes and prevent time theft, like buddy punching. This is when an employee asks their coworkers to clock them in for them before they’ve arrived to work, and is usually done to avoid getting reprimanded for being late or to prevent the loss of wages.  

A time clock app, like Homebase, for example, assigns unique PIN codes to employees so they can clock themselves in on a mobile device. It also alerts you when an employee is late signing into their shift and takes photos of the worker when they clock in, so you can rest assured the right individual is logging the time. 

By implementing a more modern approach to timesheets at your business, you’re not just saving yourself or your employees time, but also saving money and building trust through accountability with your team. 

Ready to go paperless? Use Homebase’s automated online timesheet templates

Let’s cut the sheet—timesheets can be a nightmare. Especially the pen-and-paper kind, or their still-not-great rival: the Excel/Google spreadsheet

And because we know small business so well, including the pain you feel when it comes to dealing with timesheets, we’ve made it better than just digital. With Homebase, timesheets are automatic.

Homebase’s mobile timesheet app is an all-in-one solution to traditional and digital timesheets. It makes tracking employee time and labor costs instant and paper-free, and payroll prep faster and easier with the ability to run payroll from anywhere.

And when we say “easy”, we really mean it. 

“Before Homebase, we were printing out timesheets and manually calculating the hours,” says Ashley Ortiz, Owner at Antique Taco. “To keep up with the times, we’ve switched to Homebase, and it has made our lives so much more efficient.”

Timesheets, time clocks, and more

Paired with the Homebase time clock tool, your employees have a way to clock in-and-out of their shifts from their smart phone, tablets, computers, or POS devices. The time clock connects with your online timesheet to calculate hours and create payroll reports and wages for each team member.

Homebase’s mobile timesheet app even takes care of tallying up paid and unpaid breaks and overtime to help you stay compliant with local, state, and federal labor laws. Worried about labor leakage and time theft? Don’t be. The Homebase Timesheet app lets you stay on top of your labor costs by hour, department, and role, so you’re always in control of what and who you’re paying, without spending the hours tracking down timesheets and correcting them. 

Speaking of tracking down timesheets, all of your timesheets can be found on the “timesheet” tab on Homebase’s main menu. If your business is using the Essentials plan, you can store employee time cards securely in the cloud for four years, so you’ll be able to check them and access their full edit history at any time. Your employees can also verify their hours worked, report any errors, and track their pay—all for free. 

Timesheet templates FAQS

What is a timesheet?

A timesheet is a tool used by an employer to track how much time an employee spends on their work. They’re a record of clock ins and clock outs for hourly employees. Timesheets track team’s hours and time entries, and calculate payroll for employees based on the time they’ve worked. 

How can you use a timesheet template in your workplace?

A timesheet template is a document with a predefined page layout that allows businesses to record employee working hours, breaks, and time off more easily.

When you’re using a timesheet template in your workplace, you have the foundational systems you need to keep track of hours worked and stay compliant with state and federal labor laws.

Once your timesheet template is ready to go, you or your managers can fill it out. This lets your team know exactly how much they should get paid, how many hours they worked, and whether or not they accrued any overtime.

How can you make timesheets more efficient for employees and employers using timesheet templates? 

Timesheets don’t have to be tedious and time consuming. To make them more efficient for employees and employers, digitize them or make them automatic with a timesheet app.

Look for timesheets that allow for remote clocks ins-and-outs, so field employees don’t have to go to a central office or wait in line at your point of service (POS) terminal to start their shift. For those managing timesheets, use a tool that automatically notifies your team when they have a shift coming up or if they forget to clock in.

To make timesheets more efficient for employers, use one that offers automated payroll calculations. This can reduce typical problems with manual payroll, like human error and the amount of time it can take.

With an efficient online timesheet app, you’re doing more than totalling the hours worked, but also subtracting unpaid breaks, tallying and recording tips, and instantly calculating overtime.

Why do employees value a modern approach to timesheets?

Timesheets aren’t just a chore for managers, but for employees too. Employees have to remember to clock in-and-out on time, and without gentle reminders if they haven’t done so, they can miss out on wages or have their boss assume they’re not at work.

With a modern approach to timesheets, you can simplify the whole process for the team. And that includes getting paid. With the right tools, you can bring timesheets and payroll all in one place, instantly converting timesheets into hours and wages. Once you run payroll, you can even send direct deposits to your team—all from one app.

Not only that, your employees see what they’re getting paid and track their hours as they go. Report any corrections in the app, and coordinate and track shift swaps—in the same place.

A win-win for you—and your hourly team.

Is your business struggling with timesheets? Get Homebase for easy scheduling, time clocks, payroll, messaging, HR, compliance, and more—all in one app. Get started for free.

The post Timesheet templates: what every business needs to know appeared first on Homebase.

And as a small business owner, you likely don’t have the luxury of punting the task to a payroll specialist

Fortunately, paying your hourly shift workers doesn’t have to be a major headache. We’ve put together this step-by-step guide for how to pay your employees, so you can finally stop feeling like you want to break the bank every pay period.

What is employee payroll?

Employee payroll is the process of paying everyone who works for your company. 

But payroll isn’t just handing a check to your employees. From tracking employee hours and calculating wages to withholding taxes, there’s a lot that happens behind the scenes before your team can get paid.

Taking care of payroll accurately and on time is a key part of running a successful business. Otherwise, you might find yourself saddled with some unhappy employees and some pretty hefty payroll tax fines.

What’s the difference between salary pay vs hourly pay?

When it comes to paying your employees, there are usually two options: salary pay or hourly pay.

How to pay employees: salaried

When an employee is paid a salary, you pay them a fixed amount for a specific period of time. Typically a salary is expressed in an annual amount, but you may also see monthly salaries from time to time. 

Salaried employees are paid their full salary regardless of how many hours they work. This means that they typically receive the same amount every pay period. This can make managing payroll a bit simpler since every paycheck should look very similar.

Here’s an example of a salary pay:

Consider an employee who earns a $48,000 salary per year and is paid monthly—or 12x a year. Before taxes and deductions, this employee will be paid $4,000 every month, regardless of how many hours they work.

Because salary pay is fixed, you’ll find it’s more common in roles that work a 9-5. Think corporate or office jobs where weekly hours are relatively steady. However, some roles in non 9-5 businesses can see salaried employees as well, like with assistant managers, franchise owners, or roles that have specific specialties, like a window dresser or chef.

How to pay employees: hourly

On the other hand, hourly pay compensates an employee based on the total number of hours worked. The hourly pay rate is agreed upon when they join your team. But, the total compensation can vary each pay period depending on how many hours they actually worked—sometimes by a lot.

Managing payroll for hourly employees can be a bit trickier since there are so multiple factors at play. 

Here’s an example of hourly pay:

Consider an employee who earns $15 an hour and is paid weekly. 

• In week 1, they work 20 hours. They’ll get paid $300 before taxes and deductions.
• In week 2, they work 40 hours. They’ll get paid $600 before taxes and deductions.

Since hourly employees are paid for their time on the clock, getting an accurate timesheet of hours worked is critical.

Another thing to keep in mind with hourly employees is that they’re typically eligible for overtime pay. Overtime pay is applied anytime an employee works over a set number of hours a week. 

The U.S. Fair Labor Standards Act considers any working hours over 40 hours a week to be overtime. As an employer, you’re required to pay at least 1.5x an employee’s standard hourly rate for any hours worked overtime.

Hourly pay is common for shift workers where the weekly hours and schedule can fluctuate based on business needs. You’ll often see hourly pay in restaurants, retail, and other service businesses. In 2020, 55.5% of all workers in the US were paid at hourly rates.

What is the minimum hourly pay rate?

In the United States the federal minimum wage is $7.25 per hour. 

Each state also has its own minimum wage requirements. There are 29 states with minimum wages that are higher than the federal rate, with California being the highest at $15.50 per hour. 

If your company operates in a state with minimum wage requirements that are higher than the federal minimum, you must follow the minimum wage in your state.

This easy-to-use map from the U.S. Department of Labor breaks down all the minimum wage requirements for each state.

Minimum wage is the lowest amount you can legally compensate your team for their work. But when it comes to paying your team, less isn’t always more.

There are lots of benefits to offering more competitive wages and benefits. In fact, it can even save you money in the long run. Employees who feel they’re compensated for their time tend to be more productive and happier. And happier, more productive employees stick around longer, reducing turnover and improving your operational efficiency.

Of course, money isn’t the only motivating factor for employees. There are many other benefits you can offer to help retain your employees and keep them happy at work. Even offering perks like early access to wages can make a huge difference in attracting top talent to your team.

A step-by-step guide to paying your employees

If the thought of running payroll feels daunting to you, you’re not alone. 

And we won’t sugarcoat it, there’s a lot to consider when it comes to paying your team.

But with a little practice and patience, you’ll be running payroll like a pro in no time. To help you on your way, let’s take a look at a step-by-step guide for how to pay your employees.

1. Collect payroll forms during employee onboarding

Paying your employees isn’t something you can leave to the last minute. Payroll prep starts long before payday. 

One of the first steps is to get the right payroll forms and tax documents from your employee from the day they join your team. 

Some common forms that you’ll want to collect during employee onboarding include:

• Form W-4 so you can withhold the right amount of federal income tax. Depending on your state, you may also require a state-specific Form W-4.
• Form I-9 to check for employment eligibility.
• Direct deposit form or banking information if you intend to pay your employees via direct deposit.

If you happen to be missing any of these documents from your existing team, don’t fret. Just make sure you collect them as soon as you can, so you don’t miss anything going forward.

2. Calculate hours worked through time tracking

Next, you’ll want to get an accurate pre-tax pay amount—commonly known as gross pay. This is typically calculated by multiplying your employee’s hourly rate by the number of hours worked. 

In order to pay your team for the hours they’ve worked, you need proper time tracking in place. You should be tracking everything from start time, end time, and any breaks in between. You’ll also want to account for any additional hours, including vacation time, overtime, sick days, or any shifts they may have picked up along the way.

3. Calculate employee taxes and deductions

Remember the documents and paperwork you collected from your team in the first step? It’s time to pull those out because they hold the answer to how much you need to deduct from your employees’ paychecks for taxes.

In general, you should expect to withhold the following amounts:

• Income taxes, including federal, state, and local taxes.
• Payroll taxes, including Social Security and Medicare taxes.
• Benefit deductions, including health insurance and retirement benefits.

Once you’ve subtracted taxes and other deductions out of your employees’ pre-tax pay, you’re left with their net pay. This is the amount that they’ll take home at the end of the day.

Let’s look at an example.

An employee who works 40 hours at $15 an hour receives $600 in gross pay. 

Let’s say you need to withhold $100 for taxes. This means the employee’s net pay is $500. 

Your employee will receive $500 on their paycheck on payday.

4. Pay your employees on payday

It’s officially payday! Time for the fun part—you get to pay and reward your team for their hard work.

How you distribute paychecks will depend on your payroll process. Some businesses opt to pay their employees with physical checks. However, direct deposit is quickly becoming the norm, even among small businesses.

Everything up until this step needs to happen before payday. Otherwise, you run the risk of paying your employees late. Paying your employees late is illegal and it can cost you. For example, in California, you can be fined $100 for every employee that is paid late.

5. File payroll taxes 

When you deduct taxes from your employees’ paychecks, you’re simply withholding them on behalf of the local, state, or federal tax agencies. We hate to be the bearer of bad news, but you don’t get to keep it.

You’re simply responsible for distributing them to the right agencies. Any federal tax you’ve withheld will go to the IRS, state taxes will go to your state’s tax agency, and so forth.

There are also some payroll taxes like FUTA and SUI that are paid exclusively by you, the employer. So you’ll need to make sure that these are paid out appropriately as well.

6. Maintain employee payroll documents and records

Once you’ve closed out a payroll period, you need to keep all your payroll records and documents organized and easily accessible. This way, if an employee ever has questions about their paycheck or you need to look back on your records, you’ll have everything you need. 

But holding on to payroll records isn’t a nice-to-have, it’s the law. The FLSA requires that you keep records on hand for at least three years, including time cards, schedules, as well as any pay additions or deductions. You’ll need everything on hand if you’re ever audited.

What are some struggles businesses face with hourly payroll?

Hourly payroll is extremely common among small businesses. But it’s not without challenges. In fact, pesky payroll errors can sneak up on even the most diligent business owners. According to the IRS, 33% of employers make payroll errors that can cost a pretty penny.

Here are some common challenges that businesses face when it comes to hourly payroll.

Time constraints

As a small business owner, you likely wear a lot of hats. Payroll is just one of many to-do’s on your list, so it can be hard to carve out a dedicated amount of time for running payroll.  

There’s a lot of prep work that goes into ensuring payroll is completed accurately, including calculating hourly pay rates and working hours. Skipping the prep work can create tax discrepancies and in the worst-case scenario, you might find yourself in legal hot water.

Homebase Payroll was recognized as the best payroll for small businesses with hourly workers in 2022. By using Homebase you can save up to 30 minutes every time you pay your team—and trust us, that adds up.

Inaccurate employee pay time sheets

Unlike salaried employees, hourly employees are paid based on the number of hours they’ve worked. If your timesheets aren’t accurate, your team isn’t going to be paid properly. Employee hours can be incorrect for several reasons including:

• Employees forget to clock in and out
• Time theft
• Shift swaps
• Sick days and vacation days

You can minimize timesheet errors by using a free time clock app, as well as creating policies around clocking in and out. 

Missing overtime

Hourly pay nonexempt employees are entitled to overtime—it’s the law. This means that you need to be in the know anytime an employee goes into overtime, so they can be paid accordingly.

With manual tracking, it’s easy to miss when an employee slips into overtime. So it’s important to pay extra attention to your team’s working hours, so nothing is missed.

Fortunately, Homebase makes overtime and labor law compliance easier than ever. From setting up breaks and overtime for your state, we’ll make sure your team is paid every penny that they deserve.

Incorrect tax deductions and withholdings 

Hourly employee payroll is complicated enough. Throw in all the tax deductions and compliance requirements, and it’s enough to make anyone feel a little dizzy.

Save yourself the headache with Homebase. We’ll do the heavy lifting and help you calculate, pay, and file your payroll taxes. You’ll save time and feel confident that all your money is going to the right place.

Struggling to master payroll?

Get Homebase for the ultimate payroll solution. With time clocks, automated payroll, and compliance guidance, you can pay your employees in just a few clicks. Get started for free with a better payroll system on how to pay your employees.

How to pay employees FAQS 

How do I pay my employees?

Paying your hourly employees is simple. Follow these basic steps when it comes to running payroll for your team:

1. Collect employee information and payroll forms
2. Calculate gross pay based on their hourly rate and hours worked
3. Determine employee net pay by deducting the required taxes
4. Pay your employees by check or direct deposit
5. File payroll taxes
6. Document and maintain your payroll records

What’s the difference between salary pay vs hourly pay?

Salary pay is a fixed amount that an employee is paid over a period of time—typically monthly or annually. The amount a salaried employee is paid doesn’t change based on their working hours. Hourly pay is the amount an employee is paid per hour. Their total pay for each pay period can vary depending on the number of hours worked.

What’s the biggest struggle small businesses face with paying their employees? 

The biggest challenges small businesses face around paying their employees include errors and the time commitment it takes to make sure everyone is paid properly. Businesses can avoid common errors and reduce the amount of time it takes to prep for payroll by taking advantage of a full-service payroll software like Homebase.

The post How to pay employees as a small business: A complete guide appeared first on Homebase.

In this article, we’re going to take a deep dive into marketing channels and marketing tools small businesses can use to grow their company—all for free. 

Learn how to bring more eyes to your business without breaking the bank. Plus, keep your eyes peeled for one of the most overlooked free marketing tools your small business has.

What is marketing for a small business?

If you run a small business, marketing needs to be at the top of the list. But what is marketing for a small business?

Simply put, marketing is letting people know that your business exists.

It’s getting your brand in front of as many potential customers as possible. 

Even though the definition’s pretty simple, marketing your small business can be overwhelming and confusing. There’s a lot of noise out there on the best ways to get the word out. With more and more tools coming out every day that you can use to market your business—think TikTok and Snapchat as two newer options—how do you know which ones to use? 

What are free marketing channel examples?

Marketing channels are tools that help businesses market themselves to potential customers. Let’s take a look at the top three free marketing channels that small businesses can use to grow their business. This isn’t an exhaustive list, but it’s a pretty great start.

Build your business a website

In the digital age, you need a website. Period. The easiest way for you to communicate to potential customers all of the information they could ever possibly need to know about your business is through a website. Websites are accessible to most people since smartphones are in everyone’s back pocket. Think of it as a digital business card.

Hubspot has the data. “There are over 4.5 billion active internet users worldwide, and over 90% of them accessed the Internet via mobile devices.”

Some other pluses? A website as a primary marketing channel increases your credibility, makes your business more visible—and as an extra bonus for location-specific businesses like restaurants and salons—allows Google to recommend you to local customers.

In terms of search intent, these statistics really drive home how important a website is for a local business:

• 46% of searches on Google include local intent
• 97% of users use search to find local businesses
• 28% of users purchased an item after a local search
• 70% of users will visit a store because of what they found online

Those are some pretty convincing numbers to get you started on building that website today.

Don’t sleep on email marketing

In the age of social media, email marketing has become the forgotten middle child of marketing. But did you know that email marketing has the highest return on investment (ROI) of any marketing channel? New data says that for every $1 spent on email marketing, $36 is returned on investment. That’s an ROI of 3600%! 

But you don’t need to invest in a full email marketing campaign right off the bat. Sending out a weekly or monthly newsletter to keep your customers up-to-date on specials and offerings is enough to see more customer loyalty and more money in your business.

Social media is where your customers are

Social media is one of the most utilized free marketing tools. 4.76 billion internet users—or 59.4% of the world’s population—are social media users.

The term ‘social media’ is pretty broad. It encompasses Facebook, Instagram, LinkedIn, TikTok, Twitter, What’s App, and Snapchat—just to name a few. More and more social media channels are being invented all the time (and in Elon’s case, sometimes taking a dive). Small businesses are at the forefront of using social media for creative free marketing.

It’s easy to get overwhelmed using social media as a free marketing tool though. There are so many options it can be hard to narrow in on what one(s) are right for your business without getting overwhelmed.

Knowing your customers and where they hang out online is your first step to successfully marketing your business on social media. If you’re a salon that loves to do vibrant colors, TikTok’s the place to showcase your stylist’s skills. If you’re a restaurant in the financial district of a big city, LinkedIn’s where your clients are most likely hanging out.

Pick your social media channel and go all in, and don’t get wrapped up in trying every single one.

Why should small businesses use marketing tools?

The days of word of mouth and paper flyers are over. It’s a digital world, and we’re just living in it. People reach for their phones to ask their friends for their opinions on where to go, where to shop, and where to eat. 

The next thing they’re going to do? Google your business or look you up on socials. So you better be ready for it.

The advantage of using these marketing tools is that they’re widespread. They can reach people who otherwise wouldn’t have known your small business exists. 

They can also relay a ton of information about your business quickly. As we mentioned above, a strong online presence means future customers can quickly and easily see your hours and location, saving them from having to call your store to see if you’re open (and thus, saving you from spending time and labor to answer these phone calls). Customers and clients can also see your menu, a list of your offerings or products, your pricing, an assortment of testimonials, what deals you may be running, any special events, new offerings, and on and on. All of this at their fingertips.

Ignoring free marketing channels and free marketing tools can really put a dent in your bottom line as a business. The math’s simple. More eyes on your business = more sales.

This is why every small business needs to be using marketing tools.

Best marketing tools for small businesses (and they’re free!)

Now that we know the ‘what’ and the ‘why’ of marketing tools for small businesses, let’s look at the ‘how’. Here’s a list of the best free marketing tools for small businesses.

1. Use Wix to build a simple free website for your small business

If you need a basic website, Wix is the way to go. It’s one of the only website builders that offers a completely free option. While you can add customizations, the free version doesn’t have any bells and whistles, which could suit you just fine. You can literally build a website that acts as a business card with simple information all your customers need to know in a day.

If you do want to start adding things, like a custom domain, the monthly plans start at an affordable $7.50 per month.

2. Mailchimp is your free email marketing best friend

Mailchimp has been known as the best free email marketing tool for years because it’s so easy to use. It has the added bonus of being free for up to 500 subscribers. You can easily create sign-up forms for your website, landing pages to build your list, and drag-and-drop email designs.

Mailchimp will make your email marketing a simple task. That’s the goal when marketing your small business.

3. Mailerlite is the new email marketing kid on the block

If you want to research your options for email marketing, Mailerlite is the new kid on the block. It offers all of the same benefits of Mailchimp like landing pages, sign-up forms, and easy-to-use email design. Where Mailerlite has Mailchimp beat is its subscriber numbers. Mailerlite allows up to 1000 free subscribers, doubling the quantity you’d get with Mailchimp. 

If volume is a big part of your business, then Mailerlite may be the better option for free email marketing.

4. Canva can make your marketing pretty

Canva’s the free marketing tool that makes every small business owner a designer. It can help you create graphics for your website, a header and blocks for your emails, and your posts for socials to stand out. All on brand.

With Canva you can upload your brand colors, your fonts, and logo. They offer hundreds of templates you can easily alter with your uploaded colors and fonts so everything’s in line with your small business branding. 

Canva really is a no-brainer for marketing. Not only is it a money saver, it’s a time saver. That’s a big win for small businesses.

5. Use Buffer to save time scheduling your socials

You can’t be on social media all day: you’ve got a business to run. Save time scheduling your socials by using Buffer. You can create a whole month’s worth of social posts for a variety of channels, plug them into Buffer, and have them go out on a schedule. Just set it and forget it.

Buffer offers free scheduling on three social media channels. Find out where your customers are hanging out online, create those posts in Canva, and then use Buffer to send them out. Voila!

Free tools to market yourself as an employer 

When people think of small business marketing, they think of marketing to customers. But one of the most overlooked marketing tools for a small business is its employees.

Employees are your first line in word-of-mouth marketing. They tell customers what it’s like to work for you. They encourage their friends to apply to work for you, bringing in more great talent.

Harvard Business Review did a massive study of Glassdoor data. Happier employees give better customer service. Better customer service leads to happier customers. Happier customers tell their friends and family about your business.

Yes, marketing brings in more customers, but your employees retain those customers.

Let’s explore two free marketing tools that can help make your small business an amazing place to work.

1. Foster meaningful workplace relationships with team communication

Studies have shown that friendships in workplaces create strong teams. Outside of scheduling people who actually like each other on the same shifts, offer them a work-appropriate (and monitored) place to communicate.

Homebase has a free built-in messenger tool that allows for easy team communication. You can communicate with your employees and employees can message to help each other at work, communicate important information, or organize a team outing.

2. Offer flexible pay options when your employees need it

There are many ways to work on employee happiness, but getting paid well and on time is at the top of most employee’s priority list. 

Homebase has Cash Out, a free tool that provides your team with early access to up to $300 of their paycheck. No liability and no cost to you. 

Having flexibility around their pay dates and not having to worry about payday loans or interest charges can really boost employee morale.

We know it may be a new marketing concept, but don’t underestimate the power of your employees being one of the best marketing tools for your business. Using free Homebase tools can help you prioritize their happiness while simplifying things for you.

Marketing tools for small business FAQS 

What are marketing tools for small businesses?

Marketing tools for small businesses are tools you can use to spread the word about your business. They’re tools you would use to get more potential customers to discover your business.

What are marketing channels?

Marketing channels are tools that help businesses market themselves to potential customers. They’re ways to get more eyes on your business. Free marketing channels include websites, social media, email marketing, and SEO traffic. There are also paid marketing channels like PPC ads, Facebook and Instagram ads, influencer marketing, and mass marketing with print or television ads.

Is it expensive to use marketing tools for my small business?

It doesn’t have to be expensive to market your business. You don’t need costly ad campaigns and mass media marketing if you’re just starting out, and they’re definitely not required. There are tons of free marketing tools on the Internet. Explore free options like Wix to build a free website to advertise your business. Or, explore free email marketing tools and social media marketing tools, like Canva and Mailchimp. Start small with free tools and as your business grows, you can move on to more expensive marketing tools.

Why do I need to market my business?

There’s no way around it: you need to market your business. Personal referrals are great—and they can go a long way—but if you want sustainability in your small business, you need more eyes on your business on the regular. The more people who know you exist, the more people will walk through your doors.

Want to scale up your small business?

Get Homebase and spend less time managing your team and have more time to grow your business. Get started with Homebase’s marketing tools for free.

The post The best free marketing tools for small business appeared first on Homebase.

And since hey, we’re here to help, we’ll also share how your business can prevent it. 

What is time theft?

Time theft can be a result of many things. It comes down to an employee not working for all the time they’re supposed to, but being paid for it.

Time theft is considered an abuse of time in the workplace and can happen unintentionally or on purpose.

But sometimes, the reasons for time theft can be blurry. For example, you might have an employee who invites their friend to the coffee shop for a visit during their shifts. When it’s slow—and even when it’s not— they spend a chunk of their time behind the counter chatting. They get a gossip update, but counters don’t get wiped, and floors don’t get mopped.

Is this act of socialization considered time theft? Yes. But is it intentional time theft? That depends.

How was your employee was trained? What are the expectations set out by their manager? And does the team member recognize that they should be working instead of socializing, even in slow times?

This is why it’s so important for every team member to understand your work policies around what to do during slow shifts, why clocking in accurately is important, and how it impacts the success of the business. They need to know what can happen when time theft occurs—whether they mean for it to, or not.  

Time theft statistics 

Time theft adds up. Your team might think that 5 minutes here and there, or a late lunch every now-and-then doesn’t really matter. However, it can make a big dent on your budget and the morale of your employees.

According to website TotalRetail.com, 75% of companies in the United States lose money from a form of time theft called “buddy punching”. This is when a team member has a coworker clock in or out for them. It’s quite common, and not always done maliciously. Some employees do it to avoid reprimand, while others may believe they’re looking out for a friend.

Time theft can also be committed by the employer, but in a different form. This is called wage theft, and it’s when a business doesn’t pay an employee for things like overtime, working through their breaks, or when an employer asks a team member to come in early or stay a bit late.

Just like employee time theft, wage theft can be both unrealized and undocumented. Employees might not track the extra time they’re working, and without a proper way to do so, businesses might not either. In fact, the Economic Policy Institute, a nonprofit think tank, estimates that unreported wage theft could amount to as much as $50 billion per year owed to workers.

Any type of time theft can leave employees feeling a drop in morale. If a team member witnesses a coworker frequently showing up late, but still getting paid without reprimand because they’re “buddy punching”, they might feel resentment toward their teammates or the business itself, setting the foundation for a toxic workplace.

This is just one reason why time theft should be prevented at all costs.

4 types of time theft you can prevent

Time theft doesn’t always look like a villain running away with a bag full of money. In reality, it can look like an employee scrolling on their phone a little too often, or a team member clocking in for their friend who’s “just running 5 minutes late!”. 

Here are 4 common types of time theft that you can start preventing today. 

1. Buddy punching

Buddy punching is when a coworker is running late or doesn’t make their shift and asks a coworker to clock in for them. It can be done for a variety of reasons, but mainly to avoid losing wages or to avoid being reprimanded by a manager. 

2. Inflated time

When an employee says that they’ve worked longer than they have and gets paid for it, that’s considered inflated time. In a recent report, 43% of hourly workers who were surveyed admitted to exaggerating the amount of time they worked during their shifts. This type of time theft can be easier for offsite workers who don’t have to show up to a workplace or who are less accountable for their hours. 

3. Using the Internet

We know what you might be thinking. Isn’t the Internet a normal part of many jobs these days? Yes, but that doesn’t mean employees should be using it to do anything other than the role they were hired to do. Whiling away the hours on the Internet can include things like scrolling through social media, accessing personal email, online shopping, or just reading the news.

Make sure Internet and phone usage rules are clear for employees. They need to know the expectations of the business and what they can and can’t do on their shifts. For example, if you’re noticing that your employees have been texting instead of helping customers, you could implement a no-phone-on-the-floor policy

4. Taking longer or extra breaks

In a busy workplace, or one that doesn’t actively monitor an employee’s time, it can be difficult to know how many breaks employees are taking, and for how long they’re taking them. Even without actively monitoring team members, employers should always communicate expectations around breaks.

Explain what’s considered a break, how long they should be, what’s paid, and what’s not. The more you can clearly communicate your policies, the better employees can follow them. 

No matter your break policy, stick to it. If you talk about having hard and fast rules for breaks, your employees will notice if others are sliding by. Not only can that be bad for team interactions, but it has an effect on you as well. Your team won’t know when you’re serious about guidelines and policies and when you’re lax. Or worse—they’ll think you’re playing favorites.

Is time theft a crime?

We know about the different types of time theft, but is time theft actually illegal? Is it a crime?

The short answer is yes—time theft is considered a crime.

Time theft can be categorized as payroll fraud, which occurs when an employee steals funds from a business by falsifying timesheets. Examples could be:

• An employee clocking in too early or clocking out later than they’ve actually worked
• An employee not working during their scheduled shift
• An employee who takes too long of breaks or extra breaks
• An employee who has a has a friend punch in for them if they’re running or late or not showing up
  

According to Samfiru Tumarkin Law Firm, in Canada, non-unionized workers can be punished by their employer for committing time theft. Results include a team member being put on paid or unpaid leave and potentially terminated. 

From the employer’s side, committing wage theft carries a different penalty. If a business owner refuses to pay an employee for unauthorized overtime, they could be violating local and federal laws, like the United States Fair Labor Standards Act (FLSA). 

How to prevent time theft

There are many ways to prevent this, and not all require someone monitoring the break room 24/7. With the proper tools and rules you can make sure your employees are showing up when they should, and spending the shift actually working. 

Implement time theft policies

Implementing strong policies can start with communication. Talk to employees about the value of their time. Explain what happens when they’re on shift but not actually working, and what’s lost when team members have their coworkers clock in-and-out for them.

Ensure that employees know that these policies do more than prevent the loss of money, but that they’re there to build trust and transparency. Team members should feel open to communicating with their boss about any issues, including running late or missing a shift so they can get support, not reprimanded. 

Establish time theft repercussions

Once you’ve communicated time theft policies, explain to employees what happens if they don’t follow them. Document a formal write-up in their file, or consider assigning them less shifts for a set period of time. If it’s their first offense, try a direct conversation (but ensure it’s still documented).

Clearly communicate any repercussions, document them, and have your employees verify that they understand them. Including this feature in your onboarding package for new team members is a great way to ensure everyone has read the policy and digitally signed off.

Use tools to identify and prevent time theft

The best way to take control and prevent time theft is to use modern software solutions. This includes implementing tools like a GPS digital time clock, digital timesheets to prevent fraud, and messaging apps for teams so you can check in with employees if you notice they are clocking out late or showing up too early.

Homebase: your partner in preventing time theft

We know that it’s easier to push the idea of time theft out of your head. But as a business owner, it’s something that you need to be aware of and on top of. And because we know that you’ve got other things on your mind and on your plate, Homebase is here to help.

Sure, you could post signs reminding employees of how to correctly log time or provide a copy of the company’s policies as a reference. However, if you’re ready to go one step further, consider online business tools that are designed to prevent time theft. Even better: look for a tool that also supports team communication and workplace transparency. 

At Homebase, we’ve got exactly that.

Smart automated tools

Small business owners can partner with us for time tracking, automating timesheets and employee scheduling.

Our free time clock app can be downloaded to smartphones, iPads, computers, POS devices, and more. That way you can effectively track hours, breaks, overtime, and paid time off. 

Employees can use a unique PIN to log in. And if you need to, our time clock software can take a photo of the person clocking in so you know that the correct employee is signing in. That’s right: no buddy punching on our clock. 

On top of the prevention perks for you, employees get to save time since they won’t have to manually input their shift start or end times. It also helps prevent unintentional time theft for employees that clock in early by accident, or forget to clock out.

If you need help setting up prevention policies, Homebase has just the thing.

Skip the worry and set up your break and overtime rules to comply with federal, state, or city laws.  We’ll store all your time cards—including all edits—to help you comply with FLSA record-keeping rules. We’ll even send alerts when labor laws change at the state or federal level.

Need a bit more support? We’re here for you. That’s why we have certified HR Pros to review your policies.

Time theft FAQs

What is time theft?

Time theft is when an employee is being paid for moments during a shift that they didn’t actually work. It’s an abuse of time and can happen unintentionally or on purpose. Examples include an employee socializing too much, using the Internet for too long, or having another coworker clock them in if they’re running late or unable to show up for their shift.

Employees might not know that they’re committing time theft. In that case, they should know your expectations for the role, and how their contribution during their shift impacts the work they’re doing. It also affects the success of your business, and therefore their job.

Is time theft illegal?

Yes, time theft is illegal. It’s considered a type of payroll fraud. However, there aren’t federal rules in place to regulate how a company should deal with it, which means employers can decide how to take action.

That might mean a business gives an employee a warning, puts them on leave or terminates their employment.

What are some examples of misuse of company time?

Unfortunately, there are a number of ways to run the company’s clock that can be considered as time theft.

Buddy punching is an example, where coworkers clock in and out for each other to make up time or to prevent being reprimanded by their superior.

Other examples include over-socializing, which can happen when two or more employees talk or hang out on the job instead of working. Using the Internet for purposes other than work is also considered time theft, even though it can be unintentional.

How can companies prevent time theft?

Use modern solutions like digital time clocks, timesheets, and messaging apps to prevent time theft. This helps keep track of attendance, while letting you check in with employees who may be clocking in and out late or early, or unintentionally committing time theft.

By setting and communicating time theft policies with your employees, you can ensure they understand the value of their role, their time, and the impact they have on the business.

Team members should know how time theft is defined in your workplace, and the consequences of committing it. Employees should also know how their time is being tracked and monitored. Train your team properly on whatever time clock you are using in your business. 

Time theft is common, but doesn’t have to happen on your watch. With modern technology that’s easy to use for both you and your employees, you can take back control of the hours in your day, while letting your team do the same.

Is your business struggling with time theft? Get Homebase for easy scheduling, time clocks, payroll, messaging, HR, compliance, and more — all in one app. Get started for free.

The post How time theft is impacting your business (and how to fix it) appeared first on Homebase.

What is payroll management?

Payroll management is a lot more than making sure your staff is getting paid. While, yes, that is a core function of the job, payroll management is more like a process rather than a singular task. 

Payroll management is about managing employee salaries, benefits and taxes, and involves the tracking of employee hours, time off, benefits, and deductions, all before the final pay is calculated and distributed.

And that’s just the beginning. 

For shift workers, payroll management can be a little more complex. For instance, shift workers don’t always work the typical Monday to Friday, 9 to 5. Their shifts can fluctuate, and are often traded between team  members to better suit personal needs or scheduling conflicts.

Shift workers may also be subject to different laws and regulations, or policies by the business. In fact, U.S. federal law doesn’t mandate any employee vacation time for shift workers, which means that it can be up to the business owner to decide how employees  get paid, and what they’re covered for. This means that if it makes financial sense for your business to only pay full-time employees for vacation, it’s your decision.

No matter your choice, it all has to be managed effectively so your team  can get paid what they’ve rightfully earned.

Why is managing payroll important?

Managing payroll is important for a number of reasons. The first is team morale.

Without a properly managed payroll and a paycheck that’s on time, employees  may be left wondering when they’ll get paid, if their time is being tracked properly, or if your business is in financial trouble. When these questions arise, morale can drop. This can cause reduced productivity, decreased trust in the business, and less engagement from staff. Workers may even begin to look for another job.

The next reason why managing  payroll is so important is because it’s the law. As a business owner, you’re legally entitled to pay your staff on time. There can be different consequences for paying late depending on where your business resides. For example: 

• In California, employers are subject to a $100 penalty if they pay their employees’ regular pay late. 
• In Florida, employees can bring a civil theft claim against an employer when the employer hasn’t paid wages due. Before they file an action in court, they must provide the employer written notice of the claim and give them 30 days to pay the amount due.  

In addition to the legalities, managing payroll effectively is important because it helps with budget management. Depending on the size and scope of your business, paying your team  can be one of the biggest financial parts of what you do. With proper payroll management, you can track hours, time off, vacation, and more, and keep it all aligned with your overall budget.

The important role of the payroll manager

The payroll manager has an important role in a business. This role can often be assumed by the business owner, operations manager, accountant, or human resources specialist. No matter who takes on this important task, the overall objective remains the same: make sure all employees are paid accurately, paid on time, and that the business complies with all of the rules and regulations deemed necessary by their state. 

How to manage payroll

If you’re a business wondering how to manage payroll, we’ve got some good news and some bad news. First, the bad news: it can be a headache with a few too many steps. That is, if you take it on manually. 

If you plan to manage and run payroll manually, whether it’s restaurant payroll or payroll for salaried or hourly employees in another industry, you’ll need to know some important details before sending that check. Here are a few steps to get what you need in order. 

Collect employee data

Aside from collecting employee names, addresses, social security numbers, and tax withholding information, you’ll need to collect their hourly rate, gross pay, pay frequency, filing status, withholding information, and other deductions. 

Track hours

To manage payroll, you’ll need to have an accurate report of time worked in your employee’s  pay period. This includes breaks, vacation time, overtime, any sick days, and shift swaps with other employees.

Calculate employee pay

Once you’ve got your information and hours tracked, you can start with the math. Here’s how you’d figure out something like gross pay. 

First, figure out their hours worked during the semi-monthly pay period. Then multiply that by their hourly pay. For example, if your employee makes $10 an hour and worked 80 hours over 2 weeks, their gross pay would be $800.
From the gross pay, you’d subtract payroll taxes and other deductions, like benefits. It’s important to make sure you are deducting the right amount of taxes from each employee’s gross pay or you could face an audit from the IRS.

Issue the paycheck

The fun part! After you’ve calculated each employee’s pay, you’ll want to issue printed paychecks or direct deposit into their banks. According to the Society for Human Resource Management, about 18% of small businesses with revenue between $10 million and $20 million don’t use direct deposit. If you still like a good ol’ fashioned paycheck, you’re not alone. 

File taxes

The not so fun part. As a small business, you’ll have to file taxes based on your payroll. For example, at the end of the year, employers have to complete Form W-2, Wage and Tax Statement. This government form is so you can report wages, tips and other types of compensation paid to an employee. 

Common payroll management challenges

There are a number of common payroll management challenges that businesses might face as they work to pay their staff. Here are 3 reasons why it can be such a challenge to do on your own. 

1. Information overload

There are many factors on both the federal and state level you need to remember when preparing your payroll, especially for hourly employees.

Part of this role is to keep track of and calculate a lot of changing information, like hours worked, breaks, overtime, and PTO. Depending on how these are tracked originally, this could be done a number of ways like Google Sheets or Excel, or even pen and paper. Either way, you’ll need to make sure employee hours are verified and approved by their manager.

2. Not enough time

You know the saying, “You have the same amount of hours in the day as Beyoncé”? We’re going to be honest: nobody has the same amount of hours as Queen B. Especially business owners who are managing payroll on their own.

If you’re managing payroll with manual tools like Google Sheets, Excel, or pen and paper, you’ll have even less time on your plate to do everything you need to run your business.

3. Uncertainty about documentation and taxes

Once you’ve gathered all of the information you need, it’s time to organize and store it. This step involves a lot of admin work. You’ll need to coordinate information about Employment Insurance (EI) along with withdrawals and deductions that need to go to various government and insurance companies.

After that’s covered, you’ll need to provide each employee with a detailed overview of their payroll. This includes the hours they’re getting paid for, their hourly wage, a breakdown of benefits and subsequent withdrawals.

The role of a payroll management system

A payment management system, sometimes called a PMS, is software that can help your business manage payroll efficiently and effectively. Its primary role is to process and track payments without errors, making your day a lot simpler.

It might sound like an easy job, but there’s a lot that goes into it.

Like organization, for example. A good payroll management system should set up your roster and store employee information, including emergency contacts, certifications, birthdays, and start dates. It should organize all employee e-sign forms, and safely store their documents online. Depending on your software, you might even use it to share schedules, send messages, and get your team in sync.  

Some payment management systems are designed to give your employees a bit more autonomy. For example, the Homebase app gives your team on-demand access to their hours, schedules, earnings, pay stubs, and W-2s. Employees can receive payday notifications, so they know when they’ve been paid, and they’re able to submit and track time-off requests, and work with each other to trade and cover shifts.

Homebase for payroll management

Okay, we’ll admit it. There are a lot of complicated steps to successfully running payroll while staying compliant and paying everyone accurately. But remember when we said there was good news? Here it is.

You don’t have to do payroll management on your own. There are online payroll solutions that offer full-service payroll features out there… like Homebase.

“I love the simplicity, the time tracking, and the payroll system itself,” says Homebase customer Rob Graft, Owner of Nemesis Industries in Colorado. “It’s so much easier than anything I’ve used in the past… it’s worth every penny, and it’s super simple. I’ve run payroll from literally sitting on a horse, moving cattle, and submitted my payroll.”

Homebase payroll automates the entire payroll process for you, reducing the hours you spend doing things manually. We’ll even run payroll summary reports for you, which can be tedious on their own.

When it comes to the nitty gritty stuff, Homebase helps you set up breaks and overtime based on  your state to calculate hours and wages correctly.  You can even calculate, pay, and file your payroll taxes in a just few clicks.

With Homebase, you can also  automatically submit any new hire reporting and files, and distribute W-2s and 1099s. Plus, Homebase stores your time card records to help you stay compliant with FLSA record-keeping rules.

Our payroll services can also help prevent payroll fraud among your team members by catching any manipulations or mistakes they may have made to increase their pay. Hey, it happens. 

Payroll management FAQs 

What is payroll management?

Payroll management is a process that requires a lot of steps, tracking and documentation. It’s about managing staff salaries, benefits and taxes, and involves the tracking of employee hours, time off, benefits and deductions, all before the final pay is calculated and distributed.

What is the role of a payroll manager?

A payroll manager has the role of making sure all employees are paid accurately, on time, and while complying with all of the rules and regulations deemed necessary by their state. In a small business, the payroll manager may be the owner, manager or accountant. 

What are the steps in the payroll process?

If you’re managing payroll, there are a few key steps you’ll need to consider. First, you’ll want to collect all employee data. This includes names, addresses, social security numbers, and tax withholding information. You’ll also need employee hourly rates, gross pay, pay frequency, filing status, and other deductions for things like insurance.

The next step is tracking hours, and doing so accurately. This part includes tracking breaks, vacation time, overtime, sick days, and shift swaps. You’ll want to make sure these times are verified by managers, too.

Once this information is collected, the payroll calculations can begin and employees can get paid, either with a paycheck or direct deposit.

You’ll need to remember to document everything for tax time. For small businesses, filing taxes based on payroll is a must-do. This means completing tasks like filling out Form W-2 at the end of the year to report wages, tips, and other compensation paid to employees.

What’s the difference between HR and payroll?

Human resources (HR) and payroll are two separate things. HR is responsible for business operations like recruiting and hiring employees, managing and coordinating benefits, employee compensation, and developing policies that support the success of a business.

Payroll is a little different. It makes sure that employees are paid accurately and on time. It also takes care of taxes, manages the deductions, and ensures that procedures are compliant with all laws, including local, state, and federal. 

You don’t have to be an HR professional or an accountant to run payroll, but as a small business, you might be wearing many hats and taking on many different tasks. If that’s the case, take a break with an app that does that hard stuff for you.

Ready to modernize your payroll? Get started with Homebase today.

The post Payroll management: What every business needs to know appeared first on Homebase.

Time management can have a profound impact on our productivity, especially in the workplace. And we’ve got some surprising stats to prove it.

Keep reading as we cover the basics around time management and why it matters for your business. And of course, we’ll share some of our favorite tips and tools to elevate your team’s time management skills in no time.

What is time management?

Put simply, time management is the art of optimizing your time to achieve your goals. 

We all have a limited number of hours in a day—24 to be exact. And there’s only so much time we can dedicate to work and other activities. While we can’t make more hours in the day, we can take steps toward making the most of that time. 

Time management uses careful planning and prioritization to help divide your time between all the different things on your to-do list.

While we all like to believe that we manage our time well, the truth is that most of us don’t. Especially when it comes to the workplace. According to Forbes, between social media and other distractions, employees can waste as much as two hours a day at work.

Poor time management often slips through the cracks—especially when it seems like work is still generally getting done. But with a few time management improvements, just imagine what your team could accomplish if you leveled up your business’s time management skills.

Why is time management important?

Time management helps us work better and smarter. But when businesses don’t prioritize time management, it can have a significant impact on employee productivity and overall business operations. 

When time management isn’t a priority, it can create:

• High levels of stress and burnout: When employees and teams don’t manage their time well, productivity takes a hit. This means goals can take much longer to reach than expected. A growing to-do list and the stress of not meeting expectations is the perfect storm for creating employee stress and burnout. 
• Inefficient employee scheduling: When time isn’t being managed properly, you can’t get an accurate grasp on the time it takes to complete tasks. This makes creating optimal schedules difficult, often resulting in over or understaffing shifts.
• Increased operating costs: It’s true what they say—time is money. Wasted time and resources can cost you a pretty penny. When employees aren’t producing what’s expected of them during their scheduled hours, it can cost businesses in overtime and extra working hours. 

Fortunately, investing time into time management can help your team get ahead.

The benefits of good time management

When there are 100 things on the go, it can be difficult to carve out the time for time management. It can often feel counterproductive—like it’s eating up precious time that you don’t have.

But the time you take to plan and re-prioritize can be game-changing and help you get more done faster. 

Here are some ways small businesses can benefit from practicing good time management skills.

• • Saved labor costs: Making better use of time means that businesses can achieve more in less time. According to a Homebase customer survey, 1 in 8 small business owners have cut down costs to save over the last six months. Many have opted to limit inventory, services, or hours of operation to account for inflation and other rising costs. These types of cuts can impact revenue. But if you can get more done with the same or less labor, you’ll save without impacting your customers.
  • Better job satisfaction: Most employees want to put their best foot forward at work. Proper time management can help them do better work. Employees are also happier and more content with their role if they feel that sense of accomplishment—which can also cut down on employee turnover.
  • Improved customer experience: Efficient teams can respond to customers quickly and more effectively. This helps build better relationships with current and future customers.
  • Stronger team culture: When teams collectively believe in working smarter, not harder, employees are less likely to feel burnt out. It also builds a culture where employees work together toward a common goal, which can cut down on toxic workplaces. When employers prioritize time management, it shows that they’re looking for ways to reduce unnecessary work for their employees.

8 time management stats to help you improve your time management

Time management helps build winning teams and grow successful businesses. 

Don’t believe us? These stats about time management make it clear that time management is a must for every small business.

Labor is the number one cost for businesses, accounting for 70% of spending

Labor costs are what you pay for your employees’ time. With labor being one of the highest costs for small businesses—it can account for up to 70% of spending—time is one of your most valuable assets. That’s why it’s so important that it doesn’t go to waste. And yet…

The average worker spends 51% of every workday on low to no-value tasks

Low or no-value tasks are things that don’t contribute in a meaningful way to your overall business goals. These tasks can often be repetitive or redundant, yet take up over half of the average employee’s workday.

For example, a restaurant employee who’s taking inventory of takeout containers for the sixth time today is performing what could probably be considered a low-value task. 

Overstaffing and lack of direction can often lead employees to spend their time on low-value work.

Imagine how much more your team could accomplish if that time were reallocated to things that could actually propel your business forward.

82% of people don’t have a time management system

Most of us recognize the importance of time management, but few of us put the systems in place to make it happen. 82% of individuals don’t have a structured time management system in place.

A time management system is a process or approach to managing your time. It’s a proven method of helping you divvy up tasks and prioritize them based on your goals. Some common examples of time management systems include the Eisenhower matrix and the Pomodoro method. 

Have we piqued your interest? We’ll cover both of these in detail below.

The average person checks their phone 96 times a day 

We all love to roll our eyes at those pesky screen time reminders. But this number shows that we probably need them. Whether we’re checking our emails or social media, this equates to us reaching for our phones approximately every 10 minutes. 

Our phones provide so much value and can help us be productive. But they can also be a major source of distraction. If employees are spending hours of their work day scrolling through Instagram or texting their friends, that’s a lot of time lost on your company’s dime.

Meetings cost companies of all sizes millions of dollars a year

We’ve all had those meetings, you know, the ones that could have been an email. Turns out those meetings are pretty expensive—costing small companies up to $2.5 million a year.

Of course, there are situations where meetings can be valuable. But as a general rule of thumb, meetings can be extremely inefficient. This is especially true in businesses with hourly and shift workers where gathering the entire team can get pretty tricky.

Instead, use a team communication platform to easily get critical information to the right people without gathering everyone in a meeting.

The average employee spends up to 9% of their year switching between different apps

Yikes—that’s almost 200 hours a year dedicated to navigating between platforms at work. This doesn’t even account for the time that our brains spend context-switching during the day.

Taking advantage of app integrations and other solutions can help your team reduce the amount of time spent going back and forth between different tasks and apps.

20% of workers say they waste time at work because they’re bored or aren’t interested in their jobs

If employees are bored and unstimulated, they probably aren’t making the most of their time at work. Boredom can happen because they aren’t engaged in their work or they simply don’t have enough work to do.

Bored employees might spend time on their phones or chatting with other employees during their shifts to pass the time. And as you can probably guess, these employees are typically less productive and produce lower-quality work. With 20% of employees wasting time out of boredom, it can cost a pretty penny.

1 in 4 businesses want to invest in operational efficiency in 2023

We love to see small businesses investing strategically to help set themselves up for future success. According to a recent Homebase survey, improving operational efficiency is an important growth strategy for small businesses this year.

When a company uses its resources efficiently, it can reduce waste and save money. A large part of operational efficiency is making sure that their team and resources ) are being used effectively—without affecting the quality of output.

Investing in time management is just one way that businesses can get closer to achieving operational efficiency.

How you can improve time management in your business

The numbers don’t lie: time management is a common struggle among businesses of all sizes. But the good news is that it’s a problem that can easily be solved with the right time management strategies and tools.

Unlock more time for your team with these tips for improving time management skills within your business.

1. Define your business goals

You can’t properly prioritize your time if you don’t know what you’re working toward. Effective time management requires you and your employees to have a solid understanding of your objectives.

Business goals can range from improving revenue, raising customer satisfaction rates, or even building brand recognition. 

Understanding how their day-to-day tasks ladder up to overarching business goals can also build a sense of purpose among employees. Clarity around business objectives can also lead to higher rates of job satisfaction and employee happiness.

2. Conduct regular time audits

A lot of teams fall into the trap of not really knowing what they’re spending their time on. And as a business owner, you deserve to know where your money is going.

Regular time audits can give you insight into what your team is working on within a given period of time. With a time audit, you use time tracking to get a detailed log of what everyone is doing.

The goal here isn’t to micromanage your team—and trust us when we say that won’t help improve productivity. Rather it’s to get a better understanding of work habits and how you can better use your employee’s time. 

Time audits can answer questions like:

• What tasks are taking up most of your team’s time?
• How long does it take to complete a specific task? And are you allocating too much or too little time for it?
• Are there projects that aren’t worth spending time on?
• Are there higher-value tasks or projects your team could be working on?
• Are there any time trends and patterns that need attention?

By regularly performing time audits, you can also track efficiency improvements over time.

Time-tracking tools like Homebase make it easy to track the hours your team works and conduct audits. With Homebase’s free time clock app, employees can easily clock in and out, right from their phones. A more accurate time tracking system gives you better control over the time your team spends at work and the associated labor costs. 

3. Implement time management techniques and systems

For most folks, time management doesn’t come naturally. It can take a bit of time and practice to get to a point where you’re using your time well.

Of course, you theoretically could manage your time in your head. But time management systems are structured processes that are proven to improve your productivity. They’re tools that make the task decision-making process easier and help you stay productive.

Time management systems also foster a sense of transparency among teams. It makes it clear who’s doing what and why, which contributes to a sense of belonging and a culture of teamwork.

Not sure where to start? Here are some popular time management systems you can try with your team.

Eisenhower Matrix

This system divides your tasks into 4 quadrants that help you determine what tasks to prioritize. 

Depending on which quadrant your tasks fall in, you can either tackle them now, delegate, or push them to a later date.

Pomodoro method

The Pomodoro technique helps minimize distractions and keep employees focused. The system prioritizes scheduled, intermittent breaks.

For example, an employee will focus on work for 25 minutes, then take a 5-minute break.

By scheduling breaks, it’s easier to avoid employees checking their phones every 10 minutes. If they know they’ll have 5 minutes to do it later, it can help them stay focused on the task at hand.

Time blocking

Especially in fast-paced environments, like restaurants or retail, a lot is going on at once. It’s easy to find yourself pulled in 100 different directions. Time blocking helps your team focus on one thing at a time.

With time blocking you start with a list of tasks. Then you estimate how long each task will take and assign a block of time where you’ll work on that specific task.

Time blocking creates a concrete schedule. This reduces the need for context switching and makes it easier to avoid distractions and interruptions, like emails or other minor tasks.

Employers with hourly employees can build the concept of time blocking directly into employee schedules. By assigning specific tasks and roles ahead of time, employees can stay focused on higher-value tasks during their shifts.

4. Prioritize effective scheduling

To an extent, you can empower your employees to manage their time while on shift. But how you schedule your employees is critical for setting them on the path to success at work. Otherwise, you might find yourself with a bunch of employees sitting around twiddling their thumbs—and no one wants that.

Here are some things that you can do to effectively schedule your employees.

• Factor in sales and customer volumes. Make sure that you’re scheduling the right number of employees based on the expected work. Overstaffing often creates situations where employees are stuck working on low-value tasks. On the other hand, understaffing can cause employees to go into avoidable overtime and result in a lower quality of work.
• Provide clear shift details, including start time, end time, and scheduled breaks. This can help employees show up on time and better manage their time during their shifts. Advanced notice and flexible scheduling can also help improve employee morale and satisfaction, which in turn impacts productivity.

5. Automate tedious and repetitive tasks

Business owners and employees often find themselves working on tedious and time-consuming tasks. Where possible, consider implementing tools and technology to free up that time for more important tasks.

For example, payroll and time tracking can be something that takes up a lot of time for business owners. Instead, say goodbye to manual tracking and use an all-in-one automated employee management platform. Built-in automations and integrations will save you time, and reduce the need for constantly moving between a bunch of different platforms.

The same principles apply to your employees as well. Use technology and tools to make it easier for them to spend their time on higher-value work. For example, sending out communications using a team communication app is an easy way to save on unnecessary meeting hours.

6. Minimize distractions

We live in a world of distractions, particularly those of a digital nature.

Getting distracted is normal—we’re only human after all. But when we’re interrupted, we tend to lose our focus. It can take a lot of energy for distracted employees to return to their work.

By minimizing distractions in the work environment, it’s easier for employees to stay on track with the task at hand. 

Some ways to minimize employee distractions include:

• Limiting personal phone use while on the clock
• Providing regular breaks to help employees stay focused
• Setting shift goals to give employees something to work towards
• Keeping workspaces clean and organized

Simplify time management with Homebase  

If time management feels a bit daunting—we get it. But we promise that the time and energy you invest in time management for your team is worth its weight in gold.

Plus, we’ve got a not-so-secret weapon that will make managing your employees’ time a breeze: Homebase.

Homebase is trusted by over 100,000 small businesses to better manage their employees.

Make scheduling hassle-free by creating employee work schedules in just a few minutes. Assign roles and schedule based on sales forecasts, so you’re making the best use of your employees’ time while they’re on the clock.

And when it’s time for their shifts, our time clocks give you the confidence of knowing exactly who’s clocking in, when, and where. You can also track sales against hours worked so you can get the insights you need to optimize your labor costs.

And of course, we’re here to help you empower your employees to take control of their own time management from day one. Documentation, including time management resources, can be sent directly to employees in their digital welcome packets.

Need help with time management?

Get Homebase, and start optimizing your time with top-rated scheduling, time clocks, messaging, payroll, HR, and more. Get started for free

Time management FAQS 

What is time management?

Time management is a combination of planning and prioritization that helps you make the most of your time. The goal is to achieve your goals as efficiently and effectively as possible. Typically, time management includes balancing urgency and impact to help prioritize all the things that need to get done.

Why is time management important to businesses with shift workers?

Time management is important for shift workers and hourly employees because they’re paid based on their time spent at work. So if time is being wasted or used inefficiently due to poor time management, businesses can quickly incur additional costs to make up for the additional work.

How can you improve your time management?

To improve time management, it’s essential to start by understanding your overall business goals. After which, you can implement time management systems to help you and your employees prioritize tasks and activities that will help you achieve those goals.

Better employee scheduling, more automation, and regular time audits are all ways businesses can improve time management skills within their teams.

Can an app help you make time management easy for your employees?

Yes—an app can help you make time management easier for your team! Incorporating apps and technology are some of the best ways to improve how your team uses their time. You don’t need to figure out time management all on your own. Businesses love apps like Homebase that help streamline employee scheduling and time tracking. It helps save on labor costs and frees up time for tasks that bring more value to the business.

The post 8 time management statistics every business should know in 2023 appeared first on Homebase.

High employee turnover is a common battle that restaurants face. But that doesn’t mean you’re resigned to an endless game of hiring whack-a-mole.

If you’re experiencing high employee turnover in your restaurant, you’re not alone. According to a 2023 Homebase study, retaining current employees is a top concern for more than a third of small business owners.

Fortunately, you’re in the right place. Read along for a low-down on the impacts of employee turnover, how to calculate employee turnover, and top tips for retaining employees.

What is employee turnover in the restaurant industry?

Employee turnover is a measure of how many employees have left your organization within a specific period of time.

Turnover can happen for a number of reasons: employees can leave voluntarily, be laid off, or be let go through termination.

Employees will always come and go. Some turnover is natural, especially in industries that can’t provide a ton of upward mobility. But if your restaurant feels like a constant revolving door of employees, it’s usually a red flag that there are some deeper issues at hand.

The restaurant industry as a whole does tend to face higher-than-average turnover due to the demanding nature of the work. It’s fast-paced, deals with a lot of criticism from customers, and the hours are often unpredictable.

Throw in a few tumultuous years thanks to COVID-19 and turnover rates for the restaurant industry are higher than they’ve ever been. Many restaurants are seeing more staff leaving than staying. Limited-service and fast-food restaurants are experiencing turnover rates as high as 144%, while full-service restaurants aren’t doing much better, sitting at an employee turnover rate of around 106%. This means that in a fast-food restaurant with 100 employees, 144 would have left within the year. 

But even before the pandemic, employee turnover in restaurants was as high as 75%. This is a stark contrast compared to the average turnover in the United States of around 45% (back in 2019).

Constantly having to hire and replace employees can have a long-lasting impact on your restaurant business. So with rates like these, it’s no surprise that more restaurants are turning their attention to employee turnover. 

How high employee turnover impacts your business

A lot of business owners and managers have this notion that employees are replaceable. Of course, to some extent that’s true. But it doesn’t mean turnover doesn’t significantly affect your business operations and restaurant success.

The high costs of high employee turnover

• Increased financial costs: Hiring and onboarding new employees is time-consuming and expensive. The average cost of replacing an employee can cost as much as 2x their annual salary. The true cost of employee turnover can depend on factors like years of experience and the role itself. But in every instance, it still costs some serious cash.
• Decreased productivity and customer satisfaction: Hiring takes time. So when an employee leaves, they often can’t be replaced right away. This can lead restaurants to be understaffed and unable to meet customer needs in the short term. Even when new hires are brought in, it can be weeks before they’re fully caught up.
• Lowered employee morale: Constant change in teams makes it difficult for employees to build relationships with one another. It also creates a sense of uncertainty, since employees don’t know who’s joining and who might jump ship next.

Even when it comes to replacing your departed employees, it’s not always that simple. The labor shortage is real—with post-pandemic changes to the workforce and restaurant industry, small businesses and restaurants are already struggling to hire new staff, let alone replace current ones.

These challenges have underscored the true impact of high employee turnover. Understanding and getting a handle on your employee turnover should be a top priority.

How to calculate your employee turnover rate

So, how can you get a better sense of the number of employees coming and going? You need to know your current employee turnover rate. This is an important metric to regularly track and compare each quarter, or at least once a year.

Calculating your employee turnover is actually pretty simple.

First, you need to decide on the time period you want to measure for. For example, you might want to understand your turnover rate for the last 12 months or for the last fiscal year. 

For many smaller businesses, employee turnover rates are most valuable annually or quarterly. A longer period gives you more time to collect significant insights, but you still need to compare this frequently to past time periods to see if you’re seeing an uptick in turnover, or if strategies you’re using to combat employee turnover are effective.

Let’s look at an example:

On January 1st, you have 100 employees. As of December 31 of the same year, 10 employees have left the company. This leaves you with an annual turnover rate of 10%.

Employee turnover = 10/100 = 10%

If you’re a growing business, the total size of your workforce might change significantly over a time period. In that case, you can also use your average total number of employees each month to get a more accurate turnover rate.

Here’s the formula for this alternative approach.

Here’s an example using this approach:

In the last 12 months, you’ve had an average of 200 employees per month. During that time, 50 employees have left the company. This leaves you with an annual turnover rate of 25%.

Employee turnover = 50/200 = 25%

Understanding your employee turnover rate

Now that you know what your turnover rate is. What’s the optimal employee turnover rate restaurants should aim for?

The answer isn’t so straightforward, given employee turnover rates can vary widely between industries and businesses. Generally across all industries, a 10% employee turnover rate is widely considered to be good. However, this may be an unrealistic benchmark given that the average employee turnover in the U.S. was 47.2% in 2022. Especially, given that the restaurant industry tends to have higher turnover than many other industries.

When evaluating your turnover rate, consider tracking improvements over time to make sure you’re headed in the right direction. You can also aim to have more employees happy in their roles than those who want to leave—which is typically reflected in a turnover rate of less than 50%.

But taking a deeper look at the reasons employees have left your restaurant can also help you better understand your employee turnover. Despite all the talk about reducing employee turnover, not all employee departures are necessarily a cause for concern.

For example, if you had to lay off a number of staff because you increased your operational efficiency, that might be considered an acceptable reason for a higher turnover rate. Or if you had several employees move or go back to school, those departures probably aren’t a result of poor job satisfaction.

Meanwhile, if a bunch of employees quit for seemingly no reason, that may be cause for concern.

Categorizing reasons for leaving as acceptable, concerning, or even unknown can be helpful in understanding if higher turnover rates are something to be worried about.

How to reduce employee turnover in your restaurant

The restaurant industry tends to face higher rates of employee turnover. But that doesn’t mean it’s normal, nor should it be the status quo. 

Here are five things you can do to improve retention and prevent employee turnover within your restaurant.

1. Have a solid hiring process

A big part of reducing employee turnover means getting the right people in the door in the first place. Although it might feel easier to just get a body on the schedule, avoid the temptation to hire the first person who comes knocking.

You could nail everything else on the employee turnover checklist. But if a candidate isn’t the right fit to begin with, they’ll be out the door sooner rather than later.

Your hiring process should carefully consider your company culture, current team, and business needs. Get the right applicants by using customized job descriptions and posting your job to relevant job boards. In a pinch? Promoting your job with paid boosts can help you hire someone faster.

2. Develop an effective onboarding process to train employees

Once you have the perfect candidate, the next step is getting them up to speed.

Joining a new team is exciting, but meeting a bunch of new faces and adapting to a new work environment is a lot to take on, so don’t just leave your new employee to fend for themselves.

Your onboarding process plays a key role in setting your new employees up for success. A successful new-hire restaurant onboarding process typically includes the following:

• Role-specific training: You’ll want to cover the basic skills and knowledge that a new hire will need to perform their job. For example, a server needs to understand how to use the POS system. Meanwhile, a cook may need specific instructions on maintaining commercial kitchen appliances.
• HR and scheduling: Take the time to review company policies, like sick days and clocking-in. You should also walk your new hire through the scheduling process, so they know when they should come into work.
• Company culture and objectives: Clearly communicate the company goals and values. This can help your employee prioritize and meet these expectations during their employment.
• Meeting the team: Having a welcoming start for a new employee not only helps them feel more comfortable, it can boost morale for your existing team as well, by having them feel involved in the process. Many restaurants also adopt a buddy system that pairs new employees with an existing staff member. This helps with building a team culture while giving new hires a safe place to ask questions along the way.

Remember, onboarding doesn’t end once an employee feels comfortable doing their job. Part of keeping employees motivated and engaged is providing them with ongoing training and constant feedback—both positive and constructive.

3. Keep your compensation competitive—and pay on time

Money isn’t everything, but it sure does help pay the rent. With most of us continuing to battle inflation, good employees are often looking out for better-paying opportunities. By keeping pay competitive you’ll have a better chance of keeping your employees.

As a business owner, the thought of paying higher wages can sound daunting. However, it can pay off in spades—just ask the owner of this Pittsburg ice cream parlor. By increasing wages, the restaurant was able to reduce employee turnover and fill vacant positions, almost overnight. Plus, they noted that employees were happier and less burnt out. A positive side effect of reducing financial stress for their team.

But pay isn’t the be-all-end-all. Where possible, offering additional benefits and flexibility can also give your business a competitive edge. For example, offering early access to wages can set your restaurant apart from the rest. It’s also important to ensure you’re addressing the gender pay gap and offering equal wages for equal work.

And maybe this goes without saying, but make sure any compensation and benefits you’ve committed to get paid out on time. Your employees need to trust that their income is going to land in their pockets when they expect it. Consider using modern tools to help you make paydays easier by accurately tracking employee hours and automating payroll prep 

4. Create a positive and safe workplace culture

In fast-paced restaurant environments, things like culture can often slip through the cracks. But a positive work environment is important to employee happiness, sometimes even more than compensation.

When employees actually like their workplace, they’ll feel a sense of belonging and want to stick around.

Even something as simple as building a culture of appreciation can go a long way. In fact, 46% of workers say that lack of appreciation is why they left a job.

In a restaurant environment where there are a lot of moving pieces, positive culture also includes prioritizing your employees’ health and well-being. No one wants to come to work if they feel like it puts themselves at risk. This includes having policies around proper training and safety, as well as offering sick days and other wellness benefits.

5. Make flexible scheduling a priority

The restaurant industry doesn’t work a traditional 9 to 5, which means that employee scheduling can feel a bit chaotic at times. You have to balance employee availability and business needs, but also account for the unexpected, like sick days.

The unpredictable nature of restaurant scheduling also impacts your employees. They may have other obligations, like school or family responsibilities. How you schedule your team can help them achieve a better work-life balance, so they actually want to come to work. Otherwise, you might find yourself surrounded by disgruntled employees or a toxic workplace.

Of course, it’s not always possible to craft the perfect schedule for every employee. But a little flexibility and advanced scheduling can go a long way in keeping your team happier and around longer.

Reduce restaurant employee turnover with Homebase

Employee departures are inevitable. But with the right tools in place, you can make a difference in how long employees stay with your restaurant.

Homebase offers a robust suite of tools to help restaurant owners manage their teams—all in one place. 

Set your team up for success from day one with Homebase’s automated onboarding process. With a digitized approach, new employees can receive custom welcome packets and e-sign their onboarding paperwork all within the app.

When it comes to scheduling, Homebase also gives your team maximum flexibility by optimizing schedules based on your restaurant’s sales forecasts and employee availability. Your schedules seamlessly integrate with Homebase’s automated time tracking and make payroll prep a breeze to help you avoid stress on paydays.

And of course, when you do need to bring on new folks onto your team, Homebase can help you hire better and smarter, with customizable job descriptions and easy applicant tracking.

Homebase was recognized as the best overall scheduling software for restaurants , and comes recommended as the tool every restaurant needs to reduce employee turnover and build happier, stronger teams. 

Make employee turnover a thing of the past

Get Homebase, the all-in-one hiring, onboarding, and employee scheduling platform that keeps your employees happier for longer. Get started for free.

Restaurant employee turnover FAQS 

What is employee turnover?

Employee turnover is the rate that employees leave your restaurant business within a period of time. It’s typically expressed as a percentage known as an employee turnover rate. Employee turnover includes employees who resign and leave voluntarily. But it also includes employees that are terminated or let go for various reasons.

While some level of employee turnover is normal, high employee turnover rates can be costly and have a negative impact on the business. Successful restaurant owners and managers should take steps to reduce employee turnover as much as possible.

How is employee turnover different in the restaurant industry?

The biggest difference when it comes to employee turnover in the restaurant industry is that it tends to be higher. Even before the pandemic, the turnover rate for the restaurant industry was averaging around 81.9% with the national average employee turnover rate being closer to 45% (in 2019.)

This isn’t entirely surprising, given that restaurant jobs tend to be higher-stress with unpredictable hours. This environment can cause burnout, causing employees to leave their jobs at faster rates. However, with the right tools and tactics, it’s still possible to minimize turnover within your restaurant team.

How can I calculate my employee turnover rate?

Employee turnover rate can be calculated by dividing the number of employees who have left by the number of employees at the beginning of the period. Most employee turnover is calculated annually, but it can also be measured for other time periods. For example, many companies also opt to measure turnover rates quarterly.

How can I reduce employee turnover in my restaurant?

There are many ways to reduce employee turnover in your restaurant. First, you need to set new hires up for success by implementing solid hiring and onboarding processes. And once your team is up and running, flexible scheduling, a positive workplace culture, and competitive compensation can keep employees coming to work happy.

The post 5 ways to reduce employee turnover in restaurants appeared first on Homebase.

But 1099 contractors still come with important employer responsibilities like W-9 forms, taxpayer ID verification, and written contracts. In addition, while you may choose to handle your 1099 contractor payroll with a single Excel spreadsheet or by juggling different documents, that kind of solution won’t be easy to scale as you grow. 

Payroll software for contractors can help you streamline your payroll process now and plan for tomorrow. That’s why we’re going to ‌look at eight of the best options in this article, and discuss some of the key features and benefits payroll software provides that might work perfectly for your small business.

The best payroll software for contractors

Whether you run a coffee shop or an accounting firm, your contractor payroll software should meet your unique needs. We created our independent contractor payroll shortlist with the diverse needs of small businesses in mind.

Homebase: Best all-in-one solution

Homebase is an intuitive small business performance management tool built for hourly work, and it lets small business owners manage their payroll, time clocks, HR and compliance, work schedules, and team communication. 

Unique features

• Takes care of compliance tasks when you set up your payroll:  Homebase helps you automate payroll, and we’ll also instantly convert your timesheets into hours and wages. Our platform will even distribute 1099s automatically for new hires and submit necessary reporting.
• Helps owners and employees stay on top of hours and schedules: When your team clocks in with our mobile app, Homebase instantly calculates hours, breaks, overtime, and PTO and syncs everything with your payroll tool. Our team communication tool also helps small business owners stay on top of shifts and schedule changes.
• Gives access to HR experts: Homebase gives small business owners direct, person-to-person access to HR experts who can weigh in on everything from payroll to compliance issues.

Pricing

Homebase offers:

• A Free plan
• An Essentials plan for $16/month,
• A Plus plan for $40/month
• An All-in-One plan for $80/month

You can also add payroll to any of those plans for $35/month and $5/month per active employee.

Square: Best value for the money

You may know Square for its POS tools, but Square Payroll lets you run payroll, manage employee benefits, automatically file payroll taxes, and import your time tracking data from Square POS.

Unique features

• Integrates with Square POS and Square Team Management: Small business owners already using Square’s POS and Team Management tools can sync their data automatically with Square Payroll.
• Automates worker’s compensation: Square offers a function for pay-as-you-go worker’s compensation that business owners can integrate with their payroll process.

Pricing

• Square’s Contractor’s Only plan lets you use their tool to pay 1099 contractors for $5/month. There’s no monthly fee for business owners who haven’t hired W2 employees.

Patriot: Best for CPAs and Bookkeepers

Patriot is an accounting and payroll software with functions for accounting, payroll, time and attendance, and self-service HR management.

Unique features

• A partner program for accountants: Patriot offers special discounted pricing for bookkeepers, CPAs, and accountants, should that be applicable to you.
• Add on time, attendance, or HR software tools to your payroll plan: ​Patriot’s time and attendance tool lets you track your hourly or salaried workers manually or with time punch entry. Patriot’s HR software also allows you to run standard HR reports for new hires, demographics, retirement, and employee census. 

Pricing

Patriot’s pricing plans include:

• A Basic Payroll plan for $17/month plus $4 PEPM (per employee per month)
• A Full-Service Payroll plan for $37/month and $4 PEPM

You can also add Time and Attendance or HR Software to any plan for an extra $6 a month and $2 per contractor.

Remote: Best for global payments

Remote is an HR software for global and remote teams that offers features for hiring, running payroll, organizing benefits, and offering stock options to employees and contractors.

Unique features

• Global infrastructure: Remote partners with local legal entities and HR specialists in every country to help companies stay compliant no matter where their employees and contractors work.
• IP (intellectual property) protection: Remote’s IP Guard works to make sure companies with remote international teams can claim proper ownership of their intellectual property. 

Pricing

Remote’s plans are as follows:

• A Contractor Management plan that lets you manage your 1099 contractors for $29/contractor/month.
• An Employer of Record plan that lets you hire employees in countries where you don’t have a business set up. That starts at $299/month. 

You can also get a custom quote to add Global Payroll onto any plan to run payroll in countries where you do have your business set up.

Rippling: Lots of integration options

Rippling offers solutions for IT and HR, and their HR platform includes payroll, time and attendance, benefits, learning and compliance management, talent management, and PEO (professional employer organization) services.

Unique features

• Tons of integration options: Rippling’s App Shop gives you access to dozens of integrations for every kind of tool — from customer support to design to team communication to finance and legal. And if you notice they don’t have an integration you need, you can request it.
• Training and compliance features: Rippling’s learning management catalog lets growing companies keep large teams on track with development and compliance training.

Pricing

Rippling’s plans include:

• An Employee Management platform for $8 PEPM 
• Access to full-service payroll for $35/month plus $8 PEPM

You can also talk to their customer service team to get custom quotes.

Gusto: Best for accounting firms

Gusto is a payroll, benefits, and HR management software that offers businesses tools for full-service payroll, employee benefits, time and attendance, hiring and onboarding, talent management, and insights and reporting. They also offer Gusto Pro for accountants who need more dedicated tools to support their clients. 

Unique features

• A downloadable app for employee payments: When employers use Gusto, Gusto Wallet lets employees and contractors download and track their paychecks, banking, and savings accounts all in one app. The platform also comes with a Gusto Wallet debit card.
• Pay contractors internationally: Similar to Remote, Gusto lets you pay contractors in 80 countries worldwide, so you can easily manage a global team.

Pricing

Here are Gusto’s paid plan options:

• A Contractor Only plan for businesses who haven’t hired W-2 employees for $6 PEPM
• A Core plan for $39/month plus $6 PEPM
• A Complete plan for $39/month plus $6 PEPM
• A Concierge plan for $149/month plus $12 PEPM 

Businesses that need premium tools and have more than 25 employees can contact Gusto’s sales team for a custom Select plan quote. 

QuickBooks: Best for direct deposits

Business owners might be familiar with QuickBooks as well-established accounting software, but QuickBooks Payroll lets business owners manage payroll, schedule direct deposits, file payroll taxes, create timesheets, and receive tax penalty protection if an error occurs while using their software.

Unique features

• Direct deposits: Instead of handing contractors a check, QuickBooks lets you set up direct deposits so that they’ll always get payments on the same day.
• Tax penalty protection: If you incur a federal, state, or local tax penalty while using QuickBooks Online Payroll Elite to file your taxes, they’ll help you resolve the issue and reimburse you for the penalty and interest cost of up to $25,000.

Pricing

QuickBooks plans include:

• A 30-day free trial
• A Core plan for $22.50/month plus $4 PEPM 
• A Premium plan for $37.50/month plus $8 PEPM
• An Elite plan for $62.50/month plus $10 PEPM 

Wise: Best for enterprises

Wise — originally TransferWise — is a banking software that lets business owners pay contractors, vendors, and employees, as well as manage international invoices in 80 countries around the world. 

Unique features

• Payments for international teams: Just like Remote and Gusto, Wise lets large enterprises and companies with international teams pay their contractors and employees in 80 countries.
• Wise open API (application programming interface) for businesses: For larger businesses that want more technological control of their interface for finances and tools, Wise offers an open API that you can test, program, and build before you’re ready to implement it.

Pricing

It’s free to open an account with Wise, and here’s how their pricing works after that:

• A 0.41% fee for the money you send
• A 2% fee plus $1.50 for ATM fees over $100
• A $5 to get a Wise debit card
• A 0.41% fee to convert money into another currency
• A $31 fee to receive payments in 10 currencies
• A $4.14 fee to receive US dollar wire payments

What to look for in contractor payroll software

As the owner of a growing small business, you deserve to find a software for contractor payroll management that lets you: 

• Track your payments
• Stay compliant with your local, state, and federal laws
• Customize your processes to suit your needs
• Integrate with your favorite tools
• Communicate with a team that’s not always together in one physical location

Let’s dig into the features we think you shouldn’t go without.

HR features

It pays to make sure the tool you use has HR functions, even for 1099 contractors. Why? Because teams with contractors are usually spread out, and payroll software with HR features lets you merge everything into one place for necessary employee certifications, information, and paperwork. 

A payroll tool with HR features can also provide you with guidebooks and resources to help you stay compliant with local, state, and federal laws and even give you access to a real HR expert who can review your documents and policies and answer your HR and compliance questions.

Tax management

1099 contractors do come with some tax responsibilities for small business owners, and if that concerns your small business in particular, payroll software with tax management might be a worthy investment.

To start, a dedicated tax management feature should let you automatically issue both W2s and 1099s for new hires.

For example, if you’re a home repair company that employs both full-time staff and 1099 workers, payroll software should let you automatically calculate your wages and taxes for both kinds of workers. It should also help you submit the right payments to workers, the state, and the IRS, so you don’t have to. 

Reporting and analytics

For small business owners who want extra assurance that they’re staying on top of their contractor payroll obligations, a payroll analytics and reporting tool can help you manage and keep track of the payroll reports you need for your 1099 contractors and regular employees — including payroll registers, individual paycheck histories, and tax filing reports.

Customization options

The owner of a small spa doesn’t need the same things out of a payroll service as a small accounting firm. That’s why customization matters in your payroll tool, even if you only hire contractors, salaried employees, or a mix of both.

For example, the designers of Homebase created their payroll tool with hourly workers in mind, but it also works great for salaried employees. Best of all, team members can clock in and out of their shifts from mobile devices and have Homebase automatically sync those hours with payroll.

Integration options

It’s hard to let go of tools you’re attached to, so a payroll tool with easy-to-use integrations should allow you to keep your starter system.

Let’s say you’re happy with Square or QuickBooks’ business management tools, but you’re looking for a payroll solution that has more team management and communication features. You should be able to smoothly sync your data between both solutions and keep using them together.

Mobile application

The more convenient you can make your time tracking and timesheet system, the easier it will be to have a legally compliant, error-free payroll experience. 

We suggest a payroll tool with a mobile timesheet application, which lets you track employee and contractor hours from your phone or mobile device so you’re not location dependent — you just need an internet connection. 

Benefits of using contractor payroll software

When you’re starting out as a small business owner, you might feel that the only way to get really hands-on with the payroll process is to do it manually. But that can be a time-consuming process that puts you at a higher risk of making mistakes or facing legal issues. Here’s how payroll software can help you avoid that:

Reduce error

Transferring each contractor’s hours to a manual payroll spreadsheet can easily lead to mistakes. You’re only human! A contractor payroll software isn’t, though, and it should be designed to sync data automatically so that when your contractors clock in, their information instantly uploads to a timesheet for payroll.

Automate tedious processes

It’s not just data entry that makes payroll tedious, is it? It’s also the onboarding and paperwork collecting that overwhelms small business owners. But you can automate that process with a contractor payroll tool that lets employees onboard themselves and even reminds them to sign any required paperwork before they start working.

Stay compliant

If staying compliant keeps your small business team awake at night, a payroll tool can take care of that for you by automatically issuing tax documents and onboarding packets to new contractors, tracking worker certifications, and notifying you of any changes in local or state labor laws.

Sometimes new small business owners need some extra peace of mind, though, which is why Homebase’s platform even lets you access direct one-on-one guidance with HR professionals to make sure you’re staying above board with your contractor services.

Cut down on time and hassle with payroll software

Trying a new payroll software to manage your independent contractors shouldn’t involve too much risk. You can always go back to your old system if it feels too complicated. 

But we also want you to pay attention to how much time and hassle you avoid when trying a new tool. If you find that you’re saving hours every day, reducing your spreadsheet clutter, and gaining more peace of mind about staying compliant, then we think the return on investment is worth it.

Payroll software for contractors FAQs

What is a 1099 worker? 

A 1099 worker, or freelancer, is a contract worker who’s not technically considered an employee by the IRS the way a salaried W2 employee is. We refer to them as 1099 workers because of the tax form — the 1099 — they’re required to fill out before they work for someone. They work in a variety of positions, from freelance writers to skilled laborers to attorneys on retainer. 

How is an independent contractor paid?

Business owners can pay independent contractors hourly or by project via the contractor’s invoice. For example, freelance graphic designers or attorneys on retainer might prefer a lump sum at the beginning of each month, while freelance writers or skilled laborers might prefer to be paid at the end of a project based on how many hours they worked or their deliverables.

Do I need a payroll system for independent contractors?

You may need a payroll system for independent contractors if you want to update your tools or automate everything you do manually. 

So, whether you run your small business payroll with a spreadsheet or with accounting software, look into a payroll solution that automatically issues 1099s to new contractors, syncs time tracking with timesheets, and helps you stay compliant with your local labor laws for contract work.

The post The 8 best payroll software for paying 1099 contractors appeared first on Homebase.

The gender pay gap affects women at every stage of their lives and even plays a role in retirement insecurity. We’ll likely need to make deeper changes to societal norms before we close the gap for good, but HR departments and companies can play a huge part in making progress. 

From equitable job posts to tracking pay inequity, Homebase is here to help your business do your part.

What is the gender pay gap? 

The gender pay gap is a measure of what women are paid relative to men for the same work. In the United States, women make between 80 and 85 cents on the dollar compared to the average man. There’s a lot of debate about why the gender pay gap exists and how we can create change. Overall, two things are clear: women are consistently paid less than men, and progress on the issue has stalled.

Awareness of the gender pay gap isn’t new. In the United States., women began demanding equal pay for equal work in 1860 with little success. In the 1940s, a bill prohibiting pay based on gender was introduced, but never made it through congress. 1964 finally saw the passing of the Equal Pay Act, which prohibited employers from paying men and women differently for equal work. However, the act came with so many exceptions that it didn’t do much to change the situation. Big strides were made in the 80s and 90s, when the gap was narrowed by 15 cents, but we haven’t made significant progress since.

Why are we hearing more about the gender pay gap now?

Following the #MeToo movement, there’s been a louder and more prevalent call for fairer treatment of women. With social media being a leading contributing factor, consumers are pressuring companies to find real solutions for sexual harassment, workplace discrimination, and to pay workers fairly.

“We’re in this cultural moment. The trends have moved to put greater pressure on companies to address pay and equity,” says Maya Raghu, senior counsel and director of workplace equality at the National Women’s Law Center, which advocates for women and girls. “Millennials have helped bring gender fairness to the foreground because, as a generation, they’re focused on transparency, equity and diversity.”

Additionally, corporations are finally starting to understand that equity is good for recruitment, productivity, and brand image. 

Why does the gender pay gap still exist? 

Even when you control for measurable factors like education, experience, and number of hours worked, the gender pay gap persists. This means that other factors must contribute to women earning less than men. Let’s look at a few of the things that make it tough to close the gender pay gap.

1. Competing with bias

Whether it’s conscious or not, employers tend to perceive women differently than men. They may see women as less efficient, assume women won’t put in as many hours, or favor men because they’re less likely to take parental leave. Because of these biases, women are offered fewer opportunities—even if they’re equally qualified. Black, Hispanic, or LGBTQ women face even more discrimination, making an additional 12% less than white women. While there are laws that prohibit this kind of discrimination, they’re not always easy to enforce.

2. Paying the motherhood penalty

After having a baby, women are typically paid less than employees who don’t have children. This may happen for a few reasons: 

• New mothers are more likely to take parental leave than new fathers. When they return from work, they’re sometimes passed over for things like annual wage increases, which means it’s harder for them to catch up.
• New moms are  less likely to strive for promotions—and less likely to get them. Women are often the designated at-home caregiver if a child is sick, and family commitments mean they may be less likely to attend after-work drinks or events. This can cause employers to falsely second-guess their commitment to the job; it may also cause women to reprioritize work and not apply for more responsibilities.
• Mothers are often perceived as being less committed than employees without children.
  

Unsurprisingly, there’s no corresponding “fatherhood penalty” for men. Even in countries with leading family-friendly policies, like Denmark, where the workplace culture is very supportive of families and fathers are encouraged to take parental leave, parenthood still has a significant impact on pay equity.

3. Facing societal norms and pressures 

Cultural beliefs and stereotypes related to men and women’s abilities, like men being seen as more analytical, while women are perceived as more nurturing, can start shaping a woman’s career path from an early age. Have you ever heard of teacher bias? This is when teachers’ unconsciously assume girls are less capable than boys, especially in math. This early messaging about their ability may steer girls away from STEM-related jobs and into lower-paying fields. Women tend to dominate occupations that pay less than $30,000 per year, while men make up the greater percentage of higher paying jobs.

4. Doing more unpaid labor

Women still spend more daily hours on unpaid labor like housework, childcare, and caregiving compared to men. Shockingly, this is at a time when women hold the majority of jobs in the United States. Unpaid work can impede a woman’s ability to handle the long hours that come with demanding, higher-paying jobs, or it may dissuade them from pursuing these jobs in the first place. Unpaid responsibilities can also force women out of the workplace, leaving them with less work experience than men. This inequality is made even worse by lack of affordable childcare and support.

To see the end of the pay gap, we’ll likely need to make deeper societal changes that affect how we value women’s time, and how men and women balance careers and family lives.

Gender pay gap statistics to know in 2023

While 80 cents on the dollar doesn’t sound like a lot, the gender pay gap has serious implications for women. Let’s look at how women are affected at every stage of their lives and how achieving pay equity would have a positive impact on humans everywhere. 

1. Women are more likely to work in lower-paying fields for their whole career

The largest identifiable causes of the gender wage gap are differences in the occupations and industries where women and men are most likely to work. Two out of every 3 full-time workers in occupations that pay less than $30,000 per year are women. Meanwhile, women represent less than 1 out of 3 full-time workers in jobs paying an average of $100,000 or more.

2. The gender pay gap adds up over the course of a lifetime

The average female worker loses more than $530,000 over the course of her lifetime because of the gender wage gap. The average college-educated woman loses even more—nearly $800,000 (IWPR 2016). That’s enough money to retire comfortably in many parts of the United States. Considering many women in the country are facing retirement security, it’s no small problem.

3. The gender pay gap may play a role in the retirement insecurity of women 

Women tend to work nine years less than men over their lifetime, which can reduce their retirement savings by 35%. Women retire earlier for a number of reasons, but the primary one is to take care of children or aging parents. Since women tend to have longer life expectancies and shorter careers (generally because of interruptions due to caregiving), they’d be more secure if they retired later than men.

4. The pandemic was tougher on working women

According to the Institute for Women’s Policy Research, the gender wage gap narrowed from 18.5% to 17.7% from 2019 to 2020. While that might seem like good news, it wasn’t due to women earning more. Instead, it was because a disproportionate number of low-wage female workers lost their jobs in the pandemic. Needless to say, this isn’t what’s meant by ‘closing the gap’.

5. Women work harder for less

Women are already shouldering the majority of unpaid work, like housework, childcare, and caregiving. On top of this, women need to complete one additional degree just to be paid the same wages as a man with less education. Plus, women often work more hours for less recognition. It truly doesn’t add up.

6. Pay equity could change the world

Closing the gender pay gap could decrease homelessness among women by 40% and reduce child poverty by 50%. Here’s a staggering statistic: children of homeless mothers are 40% more likely to be homeless themselves. Achieving pay equity could help break this terrible generational cycle.

HR’s role in fixing the gender pay gap

Equal pay starts with the hiring and recruiting process. Because HR departments are on the front line, they’re in the best position to look for inequalities and point them out to leadership. Here are 6 ways HR and companies can combat the gender pay gap.

1. Push for pay transparency

If a woman has no idea what her male colleagues are earning, how can she ask for equitable pay? Companies need to stop treating salaries like closely guarded secrets. Instead, they can publish the wage ranges for all roles, and stop barring employees from discussing income. Pay transparency is proven to level the playing field and close the gap.

2. Stop asking about an employee’s current pay

Not only is a person’s current salary irrelevant to a new position, asking the question in an interview just enforces the pay gap. If women make less than men to begin with, it’s likely they’ll continue to make less in their new role. Companies should set salaries using objective measures like market salary and internal pay data to ensure employees are paid equally. Ensure these guidelines are written out in your employee onboarding guidelines so new hires can understand how they’re being paid.

3. Complete regular pay audits 

A pay audit looks at how men and women are paid for doing similar work. It measures everything from how a company brings in new talent, how it sets pay, and how it retains employees. Audits help companies find the reasons for pay disparity within their organization and make improvements. Pay audits should be done every year. 

4. Look beyond wages 

Companies should also examine other forms of compensation that may contribute to the gender pay gap. For example, look at bonuses, stock awards, promotion rates, whether women are overrepresented in lower-paid positions, and any other unfair patterns that may come up in pay audits.

5. Just say no to salary negotiations 

Women are statistically less likely than men to apply for jobs with ambiguous salary information and to engage in salary negotiations. In fact, a recent study showed that when salaries are advertised as “negotiable” women applicants drop by approximately 45%. Many employers are skipping negotiations altogether and creating pay levels based on measurable factors like experience and skills. By including pay bands and clear expectations in the job postings, women and other marginalized groups get to avoid negotiating over a salary, and are more likely to be offered fair pay for their work. 

6. Offer equal opportunities

Even when higher-paying positions exist, women may not feel like they have the opportunity to move up or don’t have as much support when it comes to growing their careers. Look at your company structure and identify opportunities to help ensure women have the same resources and support as men. This includes offering mentorship opportunities, training, and availability of high-profile assignments. Equal opportunities can also go a long way to helping avoid toxic work environments.

Homebase for hiring and HR management

Yes, tackling the wage gap is a complex issue—especially for small businesses who are dealing with a hundred other things. Homebase makes it simple to hire and keep the right people, and manage your team. Here’s how we can help you do it  with pay equity in mind. 

Easily make equitable job descriptions

In just a few clicks, you can make an inclusive job posting that doesn’t exclude potential hires based on race, gender, or sexual orientation. Start with our library of pre-written, customized job descriptions and be sure to include a few important things:

• Use inclusive, impartial, and non-gendered language. Opt for “you” instead of “he” or “she”, and “people” instead of “men” or “women”.
• Avoid highlighting job characteristics associated with genders, like empathy or analytical skills. Avoiding these personality traits is inclusive and avoids perpetuating stereotypes. 
• Focus on essential skills to ensure an equal balance of male and female applicants. The more skills that are listed, the less women are inclined to believe they are qualified.
• Stay away from overly professional wording and jargon. Intimidating language may discourage people from applying, reducing your pool of potential hires.

Share your salaries far and wide

Here’s your chance to lead the way in pay transparency. With Homebase, you can post to multiple job boards at once. Include the salary or hourly rate to ensure a wider, more equitable job pool. While the wage gap for hourly workers is lower overall, one of the largest employment sectors—food and beverage—has one of the largest wage gaps.

Including pay bands in the job description is a great business practice to adopt. Plus, skipping it may mean an entire generation skips applying. A new survey revealed that 85% of recent graduates are less likely to even apply for a job if the salary range isn’t included. With Gen Z hitting the workforce in droves, it’s tech-savvy demographic you don’t want to miss out on.

Find the best person for the job

With your inclusive job posting and transparent pay, hopefully you’ve attracted a good group of potential hires. Track your applicants in one place, schedule interviews within Homebase, and be confident you’re finding the best fit, regardless of their gender.

Show them you’re committed to equality

When you automate the  onboarding process with Homebase, you can send a paperless welcome packet to new employees. They can enter their information online, review employee handbooks, policies, training documents, and more—they can even e-sign all your documents so everything’s entirely digital. This is also a great opportunity to let new employees know about your internal policies, incentive programs, and employee appreciation opportunities.  If you can, mention the specific measures you have in place to help employees thrive at your company.

Go ahead and do that pay audit

74%  of small business owners say they have specific pay equity practices in place; but studies show that women employed by small-to-medium businesses actually make 66 cents on the dollar—an even larger gap than the national average. With Homebase, you can easily compare wages, performance stats, time off, and other critical information and see if you’re paying employees equally. If you’re not sure where to start, Homebase has an extensive resource library, and a team of HR experts to review your policies, and help with your toughest HR questions.

Set employees up for success

Frequent and consistent feedback is important when it comes to creating equal opportunities. With Homebase, you can offer your employees real-time feedback through our built-in messaging app and make performance reviews productive, effective, and worthwhile.

Make transparency simple

When employees have easy access to information about pay, performance, and other important metrics, you’re less likely to have inequality in the workplace. Homebase allows you to create employee profiles where you can track certifications, share stats, communicate in real time, and more, so your employees have as much information as you do. 

Follow all the rules

Even with the best of intentions, you still need to stay in compliance with labor laws. And when there’s no big HR team, the job falls to business owners. Homebase makes it simple to track breaks, calculate overtime, and store time cards to help you comply with federal, state, and city rules. You can also track necessary certifications and get alerts when they expire. Plus, we’ll notify you when labor laws change at the state or federal level. 

The gender pay gap is complicated and stubborn, and it won’t go away overnight. Companies big and small can play a huge role in closing the gap by being aware, listening to their employees, and by tracking and fixing workplace inequalities. If you’re a small business tackling it all and trying to make a difference, we’re here to make things easier. Together, we can do our part to eliminate the gender pay gap once and for all.

Gender pay gap FAQS 

What is the gender pay gap?

The gender pay gap is a measure of what women are paid relative to men for the same work. In the United States, women make between 80 and 85 cents on the dollar compared to the average man. Wage gaps have been an issue as long as women have been in the workplace and continue to be a stubborn problem for women all over the world. 

Is the gender pay gap real?

Yes, the gender pay gap is real. But there’s debate about how large the pay gap actually is and which gender wage gap statistics should be used to measure the problem. Because there’s always an alternative way to look at the issue, there can be a misconception that gender pay gap data is unreliable or blown out of proportion. However, the data is clear: no matter how you measure it, the gender pay gap exists. 

Does the gender pay gap exist when you compare men and women working the same jobs?

Yes. Even when you compare men and women working the same jobs, the gender pay gap exists. However, it’s not as large. When all factors are accounted for—like job title, education, experience, industry, job level, and hours worked, women make 99 cents on the dollar. While a 1 cent difference may not seem big, women who are doing the same job as a man, with the exact same qualifications, are still paid less for no attributable reason, and that’s a big deal.

How can hiring processes combat the gender pay gap?

Equitable hiring processes can go a long way in combating the gender pay gap. Best practices say that companies should be transparent about salaries, stop asking potential hires about their current salary, and look for inequality in bonuses, promotion rates, stock awards, and other forms of compensation. Some companies are doing away with salary negotiations altogether and offering the market rate for their open positions. Companies should also conduct annual pay audits to find and correct pay gaps in their organization.

Is your business struggling with addressing the gender pay gap? Homebase can help. Our modern tools make it easy to manage scheduling, time clocks, payroll, team communication, hiring, onboarding, compliance, and more. 

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