Tips & Tricks

Virtual TimeClock Tips & Tricks - February 2014

Closing payroll periods is an important but often overlooked time clock administrative function. Is it critical to the proper functioning of your time clock? No. Does it play a role in keeping your time clock efficient and convenient to use? Absolutely. Here's why it's a good idea to regularly close payroll periods.

Why closing payroll periods is important
Virtual TimeClock will use the saved totals from a closed payroll period when running historic timecards rather than recalculating the totals all over again based on the current settings for each employee. This is important because wages, overtime, and time deduction rules may have changed. So closing the payroll period saves the hours, overtime, and gross wages for all employees using the current payroll settings. This makes running reports and exports faster. It also guarantees that running old employee timecards will reflect the payroll settings in affect at the time they were originally generated.

The most likely thing that you’ll notice when you’ve failed to close a payroll period is that employee timecards display entries for an old date range. That’s because the time clock is using the current period dates from your payroll period settings. Closing the payroll period will automatically advance the current period to the next one based on your payroll frequency (how often you get paid).
 
Here’s a quick Tip:
Most businesses follow a few simple steps to prepare employee hours for payroll processing and start a new payroll period.

Reopening a closed payroll period
Since closing a payroll period saves all totals for the period to your time clock database, closing a payroll period before the end of an actual payroll cycle may lead to incomplete timecards. Any new punches made for a closed period will still be included on employee reports, but they'll not be totaled when timecards are viewed and printed. Never fear, a closed payroll period can be easily reopened from the Payroll Period configuration panel so all entries within the period can be properly totaled.
 
Here’s a quick Tip:
You don't have to close the previous payroll period before employees can start clocking in under the new period.

It may take a couple of minutes to close your payroll period, but it's time well spent since it keeps your time clock running at peak performance.