Best Way to Track Employee PTO: Excel, Google Sheets, Software, & Payroll Service

As the owner of a small business, you know that you need to track your employees’ paid time off (PTO). There are a few ways to do this!

How do you make sure the solution you’re using is the right combination of cost, time, and effort – all while staying in legal compliance?

At CSI Accounting & Payroll, we’ve worked with small businesses for over 50 years. Many of our payroll clients have a history of tracking paid time off, so we’ve heard a lot about the pros and cons of tracking PTO with:

• Microsoft Excel
• Google Sheets
• A payroll software
• An outsourced payroll service

Pros and Cons of Microsoft Excel PTO Tracking

We all know Microsoft Excel as a great spreadsheet option. Many of our clients use Excel for a variety of reasons, including tracking PTO.

The pros include:

• Most people already have this because it’s included in a standard Microsoft Office Suite package.
• It’s easy to use.
• You can customize it to the way you want to use it.
• You can use formulas for automatic calculations.
• You can download templates to make setup easier.

The cons include:

• There is a cost to get it.
• You may not notice if there’s an issue with a formula calculation.
• It requires data entry.
• Your employees can’t check their PTO balance on their own; they need to ask you.
• If you download a template, it can have bugs or be inaccurate.
• You need to manually make changes to the spreadsheet when PTO laws change.
• If your PTO policy scales with an employee’s length of employment, it can make the formulas extremely complicated.

Pros and Cons of Google Sheets PTO Tracking

Google Sheets is another spreadsheet option that is very similar to Microsoft Excel. It will have all of the same pros and cons as Excel.

It also has these extra pros:

• It’s easy to share the spreadsheet with others; all that you need is a link.
• Since it’s in your web browser, everyone with permission can access it for free.

Pros and Cons of Payroll Software PTO Tracking

When we think of payroll software, we often think about the big guys in payroll service (like ADP) who are really more of a software as a service. With this type of solution, you process your own payroll. 

That comes with these pros:

• The system has automatic calculations built in. It’s less work for you and reduces human error.
• The PTO balance is shown on pay stubs so your employees don’t have to ask you. Plus, some states require PTO balances on paychecks.
• Since PTO balances automatically transfer to paystubs, you only have to input this data once.
• You can contact support who can help answer your questions.

It also has these cons:

• You’re responsible for your data entry.
• You’re responsible for making sure your payroll is set up correctly.
• If you need to call support, you will likely be placed in a queue or on a lengthy hold.

Pros and Cons of Payroll Service PTO Tracking

When you work with a payroll service like CSI Accounting & Payroll, you’re still working with payroll software, but it’s backed by experts with more hands-on support and a personal touch.

It has pros like:

• Your payroll specialist will help you correctly set up your PTO in our system.
• Your payroll specialist will help you make updates or changes to your PTO policies in our system.
• If your PTO policy scales with an employee’s length of employment, your payroll specialist can set up tiered policies in our system.
• Your payroll specialist will help you understand your state and local PTO laws. Many states have some kind of mandatory time off or sick leave. (For example, Minnesota has Earned Sick and Safe Time.)
• The system also has automatic calculations built in, meaning less work and reduced human error.
• You can opt into showing PTO on pay stubs for a nominal fee so your employees know their balance.

Then, the cons include:

• You’re responsible for your data entry.
• You can choose to track your PTO with a different solution (like a spreadsheet), but the downside is that you’ll have to enter data twice.

Make PTO Tracking as Easy as Possible!

Now that you know the pros and cons of tracking PTO with Excel, Google Sheets, payroll software as a service, and an outsourced payroll service, are you ready to check out the simplest solution?

If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:

Not ready to talk? That’s okay! First, learn more about the factors that can make up a payroll fee by clicking the image below: