DCAA Compliant Time Keeping Checklist

Best practices

Timekeeping continues to be a hot item for government contractors including DCAA Compliance. Having an Adequate DCAA Compliance Time Keeping Checklist is crucial to successfully securing or maintaining a government contract accounting system. Often deficient timekeeping is the reason for failing a DCAA (defense contract audit agency) audits.

1. The timekeeping system or procedures must be documented in a timekeeping policy or procedure provided to all employees.

2. All of the key elements of an adequate timekeeping and compliant accounting system must be addressed.

3. Every employee must record their time daily.

4. Recording time in advance or days after the fact such as at the end of the week is not acceptable.

5. All time must be charged

6. Time must be charged by day and by project and/or indirect accounts. This includes direct labor cost, indirect labor cost and uncompensated overtime.

7. Employees must record all indirect time.

8. Hours not identifiable to a given project must be charged to a proper indirect cost account.

9. All employee leave time must be recorded.

10. Employees must record all vacation, sick, holiday and other leave time to the proper accounts.

11. Job codes that appear in the system should be initiated by finance or the system administrator.

12. Job codes must be provided to employees authorized to work on a given project.

13. Under no circumstance may personnel work on one project and record time to a different project.

14. Under no circumstance may personnel work on indirect tasks and record time as direct costs to a project or vice versa.

15. Corrections are approved by the employee’s supervisor.

16. Under unusual circumstances where the employee cannot make the changes to timesheet, the accountant or administrator may make such changes with the employee’s consent.

17. All employee time must be signed by the employee.

18. All employee time must be approved by the employee’s supervisor.

19. All employees should be provided at least documented timekeeping training awareness.

20. Periodic monitoring of compliance with time tracking requirements should be conducted by “practice” dcaa audits or floor checks.

21. Timesheets and all corrections must be maintained for a period of at least 2 years. However, project records under a government contract must be maintained for audit purposes for a period of three years after final payment. The requirements for record retention are contained in FAR Subpart 4.7.

Check out more about DCAA Compliant Time Keeping @ Edward D. Moore, CPA dcaaConsulting LLC

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Hour Timesheet includes all the features for a DCAA compliant time tracking software for both small businesses and large. Employee timesheets are in the cloud are available real time with an online approval timesheet process for supervisors.

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DCAA Timekeeping

Hour Timesheet

Timesheet Sections The “My Timesheet” can be subdivided into 4 sections

Clock In/Clock Out – this section is OPTIONAL

Hours Worked – this section is required for QuickBooks timesheet integration and Gusto Payroll Integration

Notes/Summary – section for entering daily hours worked notes or viewing leave balance data or timesheet summary overview.

Timesheet Audit Log – non-editable activity log of all entries on the employee timesheet.

Section 1. Clock In/Clock Out

This section is auto populated with employee who clock in/out utilizing the web clock on the Hour Timesheet login page. Daily hours are totaled by calculating the time between “clocked in” and “clocked out”. A user may have as many in/out pairs as required. This feature is optional and is hidden by default if no values are present in the in/out section of the timesheet.

Section 2. Adding Work Hours and Leave Hours

Adding Work Hours – this section contains a set of drop down boxes that are available once the user clicks the “Add Work Hours” button on the timesheet. These codes are referred to as “Employee Authorized Charges”. These selections are designed limited to codes each user is “authorized” to use when charging time on the timesheet.

Adding Leave Hours – this section contains a set of drop down boxes that are available once the user clicks the “Add Leave Hours” button on the timesheet. These codes are the leave types that are available to each user of Hour Timesheet.

Copy Previous Timesheet Codes – this feature allows the user to copy the codes from the previous timesheet period to the current period.

Section 3. Timesheet Notes/Hours Summary/Leave Balance

Adding Notes – there are two types of notes that may be entered in the timesheet. General notes are notes that apply to the entire timesheet. Daily hours worked notes apply to the single entry of time entered for a specific authorized charge code on a specific day.

Hours Summary – This graphic shows the breakdown of hours worked on the current timesheet divided into the following categories 1) Regular Hours 2) Leave Hours 3) Overtime Hours

Leave Balances – Displays the current leave balance for each employee.

Section 4. Timesheet Audit Log

This section of the timesheet is auto populated with each entry into the employee timesheet. The audit trail captures the username of the person who made the timesheet entry, the IP address of the person who made the entry along with a time and date stamp of the entry made. The audit trail is not editable.

When it comes to time tracking, user-friendly features are crucial. Imagine a clean interface, intuitive buttons, and straightforward navigation.

Employee Timekeeping Software for Small Businesses

Employee Timekeeping Software Top 5 Advice Tips

Get it Right the First Time

Make sure your employee handbook includes a section on employee time tracking. Highlight honesty and various examples of timekeeping fraud. Include definitions of work time and expectations from business owners

Train your managers. Hold training sessions on laws and regulations pertaining to FLSA & employee overtime policies. Also train users how to use your company’s time tracking software and mobile app.

Make everyone accountable. Require 2 sets of signatures on each time card. Both employees and managers need to sign each timesheet.

Schedule internal timesheet audits Communicate objectives for supervisors who manage employees and need to approve time cards, as well as the definition of total hours and employee time tracking expectations.

Require employees to sign-off on any updates made by management.. All timesheets edits should be acknowledged by the employee. This can include employees using the web based time card app, the mobile time tracking app or users on the time clock.

DCAA Timekeeping Requirements

We’ve got you covered | Simple Employee real time tracking by Hour Timesheet

Authorized Charge Codes

Employee timesheets only display codes assigned by management.

Reason Required

System requires employees to enter a reason for late timesheet entries.

Timesheet Audit Trail

All timesheets keep track of employee timesheet entries and edits. The detailed audit trail that captures every change made to a timesheet.

Daily email reminders

Send reminders to those employees who forget to enter time daily or weekly.

Correction Timesheets

After you run payroll there are possibilities that timesheet data might need to change. Hour Timesheet includes a detailed and auditable record of all revised/corrected timesheets.

Start Your Free 30-Day Trial with Hour Timesheet Today

Taking the first step towards enhanced timekeeping efficiency is just a few clicks away. Here’s how you can start with Hour Timesheet without any hassle:

Visit Our Website – Click on the ‘Try Now’ button to begin.

Sign Up for an Account – Fill in your business details to create your account. No credit card required for sign-up!

Set Up Your Data– Customize your Hour Timesheet data to reflect your unique business needs.

Add Employees – Easily add employee profiles so everyone can start tracking their time right away.

Explore Features – Test drive all the powerful features Hour Timesheet offers, from time tracking, employee leave management and embedded payroll

Take Advantage of Support – Utilize our comprehensive support resources if you need help along the way or have any questions.

Remember, Hour Timesheet isn’t just a tool; it’s a compliance-safe harbor that’s trusted by the world’s most innovative companies, ready to support your small business as you grow. So why wait? Start your free trial today and take the first step towards streamlining your business’s timekeeping practices.

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Additional Resources

Federal Acquisition Regulation Full Download

Federal Timekeeping Policies for Government Contractors (chron.com)

Record-keeping Requirements under the Fair Labor Standards Act

Measure Costs Right: Make the Right Decisions

How To Calculate And Track Overhead Costs

How do I Calculate Overhead Costs?

What Makes Hour Timesheet a DCAA Compliant Time Tracking Software

What Makes Hour Timesheet

a DCAA Compliant Time Tracking Software Solution

Hour Timesheet doesn’t just adapt to your business; it elevates it to DCAA compliance excellence. With unparalleled features, meticulous detail capturing, and a commitment to integration, you can’t afford to overlook the power of precise timekeeping. Embrace Hour Timesheet’s dedication to compliance, start your journey to seamless reporting today, and witness how accurate time tracking can transform your operations.

DCAA COMPLIANCE REQUIREMENTS

DAILY EMAIL REMINDERS

Employees who don’t enter daily time entries can be prompted to enter a reason for the tardy entry. Hour Timesheet also requires the user to enter a reason for editing worked hours previously entered data on a timesheet.

REASON REQUIRED

DETAIL AUDIT LOG

Hour Timesheet includes a real-time detailed employee timesheet audit trail that captures all entries, edits and corrections. The detailed audit trail captures an IP address and a time and date stamp of each entry made to the time card.

CORRECTION TIMESHEET WORKFLOW

Hour Timesheet includes a correction timesheet process providing alerts (emails) to supervisors and site admins when correction timesheets are created.

CAPTURE/TRACK BILLABLE AND NONBILLABLE HOURS

Government contracting requires all hours to be tracked by both hourly and salaried employees. Hour Timesheet includes the ability for employees are able to track time again overhead, G&A, B&P as well as any other non-billable codes and billable labor cost.

EMPLOYEE SIGNATURES

To meet the stringent auditing requirements of the DCAA, each timesheet entry isn’t complete without an employee’s sign-off. Hour Timesheet ensures that this critical step is easy and verifiable.

MULTI-LEVEL APPROVALS

Implement a chain of command with ease, where timesheets are rigorously vetted by supervisors at different organizational levels before final approval.

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NEED HELP? WE LOVE OUR PARTNERS WHO KNOW DCAA COMPLIANCE!

Need some help with setting up your accounting software to integrate with your DCAA (Defense Contract Audit Agency) Compliant timekeeping Software Solution? Ask one of our many referral partners who have decades of experience with DCAA timekeeping requirements and timekeeping procedures and DCAA audit procedures.

Check out our DCAA Compliant Time Tracking Software Solution listing in the Apps for QuickBooks Desktop Marketplace website.

$8/user with NO setup Fees, NO support fees and NO contract.

Additional Resources

Can managers change employee timesheets?

Google Play Timekeeping App Listing

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10 Signs You Need Web-Based Timekeeping Software

Web-based Timekeeping Software Top 10

top 10 reasons

Reasons why you need Hour Timesheet: The industry’s leading web-based timekeeping software.

You may need a new timekeeping software tool if:

You spend more than 5 minutes each week searching for missing employee timesheets.
Despite having a web-based solution for timekeeping, you still manually enter employee work hours into your third-party payroll software.
Basic math and time management are not strong suits for your employees.
Your non-exempt employees manually track overtime.
Your employees have varying billing rates for different jobs.
Your workforce telecommutes and desires a free time tracking app.
You have found yourself searching for an employee, only to remember two hours later that they took the day off.
There is an employee who is rarely present when needed.
You are tired of wasting paper and killing trees with printed timesheets.
Processing payroll feels more dreadful than going to the dentist.

Our team of seasoned experts, with over 20 years of experience in the time tracking software industry, is eagerly looking forward to hearing from you. We are passionate about delivering top-notch solutions and are dedicated to providing exceptional support throughout your journey. Feel free to reach out to us with any questions or requirements you may have.

We understand organizations aren’t cut from the same mold, that’s why Hour Timesheet lets business owners define your integration needs.

Unveiling the Benefits of Hour Timesheet Integrated with Gusto Payroll

When Hour Timesheet joins forces with Gusto Payroll, the result is a streamlined timekeeping and payroll processing experience that adheres to the needs of businesses of all sizes. Here’s a look at the direct benefits of this powerful integration:

Seamless Synchronization: Employees’ hours are automatically synced with Gusto Payroll, which means no more manual data entry errors or discrepancies, leading to precise payroll processing.
Compliant Workforce Management: Stay updated with labor laws, as the integration ensures compliance with government regulations, providing peace of mind to employers.
Efficiency in Record Keeping: Tailor your reporting with robust data analytics that merge timekeeping data directly into your Gusto payroll reports.
Time Savings: Reduce administrative tasks and focus on driving your business forward while the integrated system takes care of the grunt work.
User Friendly: Enjoy an intuitive interface designed for ease of use, allowing quick adoption by employees and employers alike.
Cost Effective: Eliminate the need for multiple software solutions and reduce overhead costs with an all-encompassing, reliable, DCAA-compliant timesheet and payroll service.

By integrating Hour Timesheet with Gusto Payroll, companies can unlock unparalleled efficiency, accuracy, and compliance, ensuring that payroll processes are handled with finesse. Elevate your business operations—choose this integrated solution trusted by the world’s most innovative companies. Discover the potential by starting your 30-day free trial and see the discernible difference firsthand. Get started with Hour.

Ready to transform your timekeeping and payroll processes? Hour Timesheet offers everything you need—a seamless, efficient, and compliant experience. Don’t let payroll challenges slow down your business momentum. Embrace a solution that’s trusted by industry leaders and start reaping the benefits today.

Experience the full potential of our software with no risk involved. Click the link below to take the first step towards streamlining your business. Remember, every moment saved on administrative tasks is an opportunity for growth and success.

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Questions? Our expert support team is just a phone call or email away, ready to assist you with any inquiries and ensure a smooth transition to efficient timekeeping.