Time to Comply

HR and payroll managers are wise to pay close attention to requirements of the Sarbanes-Oxley Act.

The nation’s largest organizations spent thousands of hours and millions of dollars last year to make sure their accounting practices were in compliance with the Sarbanes-Oxley Act (SOX), according to Financial Executives International (FEI).The time-consuming and costly effort impacts the payroll arena as well. Companies are challenged to comply with strict new rules by providing accurate, updated employee labor and wage data for quarterly reporting that can withstand audit scrutiny.

About Sarbanes-Oxley

Named after sponsors U.S. Senator Paul Sarbanes (D-Md) and Representative Michael Oxley (R-Oh), SOX was signed into law in 2002 to set audit requirements and to protect investors by improving the accuracy and reliability of corporate disclosures.

When it comes to reporting, SOX regulations cut across your entire organization. HR and payroll managers are wise to pay close attention to the requirements of the Act , since the information summarized and recorded by payroll significantly affects your company’s financial statements—both the balance sheet and income statement.

Note that inadequate controls over payroll processing and reporting could easily lead to misrepresentations of your company’s financial condition. Even if you outsource your payroll processing, your organization still faces the compliance responsibility—and the risks!

Adequate Controls

By using an automated employee time tracking system, organizations can be confident that they are fairly and accurately applying business rules, pay rules, scheduling and other work standards to time and attendance data captured by the system.

As an example, web-based workforce time tracking solutions offer real-time reporting broken out by department or work-group, accurately tracking employee labor and wage data for compliant and reliable reporting and forecasting as mandated by SOX.

Sarbanes-Oxley has changed the way many companies conduct and report on their business, and these challenges are felt by HR and payroll mangers. Contact us about the reporting and control features of Attendance on Demand to help in your efforts to comply.