As an employer, you should aim to hire reliable people who arrive on time and work until their shift is officially over. But you may encounter situations where employees violate your time and attendance policies.

Tardy or absentee employees can cost employers money by reducing workplace productivity and causing employers to pay for time in which employees didn’t perform work. In some cases, late employees may even falsify their time sheets.

It can be startling when you understand how much small increments of lost time can add up over the course of the year. Take an example where a non-exempt employee is consistently ten minutes late to work and worked twenty days per month all year. This could add up to 40 hours of pay for time not worked annually. Ultimately, you’re paying that employee for a week of time that wasn’t spent creating value for your business.


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Navigating the Payroll Process: A Small Business Owner’s Guide