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DCAA Compliance With QuickBooks Software

When you are in the business of federal government contracts, DCAA compliance is non-negotiable. DCAA stands for the Defense Contract Audit Agency.. QuickBooks provides an accounting package that is well suited for small to mid-sized businesses looking for DCAA compliance. QuickBooks offers two options and several different versions depending on your unique business requirements. QuickBooks offers both a desktop solution and an online tool, and either can be set up to be DCAA/Federal Acquisition Regulation (FAR) Compliant, especially with our DCAA compliance checklist. The keys are Job Costing and Labor Distribution. 

DCAA Contracts

Potential government contractors who wish to bid on certain types of contracts should know that although the contracts vary, there is a difference in direct cost and indirect costs.

  • A direct cost is a cost that can be tied directly to the production of goods or services. A direct cost may be variable. An example of a direct cost is labor or manufacturing supplies.
  • Indirect cost allocations include overhead expenses such as rent and insurances and general expenses like accounting department costs. Indirect costs are harder to pin down and harder to allocate to a specific project or item. Using a timesheet tracking application in conjunction with an accounting package like Quickbooks, you can better control the indirect cost allocations, particularly for general and administrative expenses, to the correct cost objective.
  • One type of DCAA contract is called a cost reimbursable contract, where the direct cost and a percentage of the indirect costs are paid. This type of contract requires the accounting system approval under FAR subpart 16.3.

What is QuickBooks?

QuickBooks is an accounting software solution that allows for integration across multiple platforms to make payroll quick and easy. They have two main products that make their service worthwhile.

QuickBooks Desktop

This interface of web-based time tracking software and payroll makes QuickBooks Desktop an ideal tool for DCAA Compliance. We base this on our experience with hundreds of clients over several decades. Furthermore, the QuickBooks Desktop integrated payroll module permits the charging of time directly to the General Ledger. This includes Customer, Job, and Service Items, which are immensely beneficial.

QuickBooks Online

QuickBooks Online is a cloud-based solution that is not, at the outset, designed to meet the FAR and DCAA requirements and has some limitations. The good news is that there are ways to make the QuickBooks Online system meet all the government's requirements without too much effort.

What is DCAA Compliant Accounting Software?

DCAA compliant accounting software is software that meets DCAA requirements. Your chosen accounting package – in this case, QuickBooks is set up to meet the requirements. Timekeeping and the allocation of costs are of particular importance. Consequently, QuickBooks Time Tracking software integration is an essential aspect of DCAA compliance.

Refer to DCAA compliance explained for more information.

Any accounting package set up to meet compliance requirements will be subject to strict internal controls to ensure financial integrity. One of these internal controls should be an internal accounting system audit regularly. There should also be regular checks on a monthly basis to see that all the income and expenditures balance.

The Benefits of Being DCAA Compliant for Small Businesses

If you are DCAA compliant, you may be one step closer to securing funding from the federal government programs SBIR and STTR. These programs gear towards supporting innovation and technology in small businesses. QuickBooks with Hour Timesheet will be invaluable in pursuing this kind of opportunity.

Is QuickBooks DCAA Compliant?

Yes, QuickBooks can be set up to be DCAA compliant. There are three areas to consider:

  • Chart of Accounts establishment
  • Flow of transactions
  • Cost and Computations

It’s important to note that one should always bear Generally Accepted Accounting Principles (GAAP) in mind when analyzing your accounting system.

Even if you understand all the regulations, it is still best to refer to the DCAA compliance checklist. Where possible, seek professional assistance! Be ready to implement policies and procedures that need to be applied consistently across your business.

Keys to Compliance

  • Employee time tracking posted daily with required explanations for edits and record locking.
  • Printable timesheet reports.
  • Policies & Procedures oriented toward FAR Compliance Criteria found in DCAA's SF-1408 pre-award audit checklist.
  • Consistently applied labor dollar distribution accommodating uncompensated OT for salary exempt personnel.
  • Indirect Cost Pools and the ability to compute and forecast Indirect Rates applied to Direct Costs under Cost Reimbursable Awards.
  • Progress billing + Cumulative dollar values reported against award ceilings tied to cost proposals.
  • Identification and segregation of Unallowable Costs as defined per FAR 31.205.

What Happens if You Fail a DCAA Audit?

You may lose your contract or face a suspension of payment. Be assiduously aware of remaining compliant. Floor checks are routine, and timekeeping records are an essential part of your compliance. A floor check is the DCAA's way of verifying your employees.

One way to help ensure you pass your DCAA audit is to get any requested information to your auditors quickly. This can speed up your audit, and help ensure the DCAA auditor has all the information they need. In order to do this, it’s best practice to keep excellent records and track every process and transaction. Hour Timesheet allows businesses to keep these kinds of records, in a convenient, cloud based place.

We Can Help

Hour Timesheet isn't just a timekeeping software provider for government contracts looking to pass a DCAA audit. We also partner with dozens of CPA firms and consultants who can assist you with the entire life cycle of getting a DCAA approved accounting system. Give us a call today! We can introduce you to our extensive list of experienced partners.

Hour Timesheet Tracking Software and the Staffing Industry

Hour Timesheet Tracking Software and The Staffing Industry

The responsibilities of a staffing firm go beyond the fulfillment of job orders. As a staffing firm, you will be charged with ensuring that your client is looked after and that you retain your best candidates. To enable you to do so will include having timekeeping software, such as Hour Timesheet. Using electronic timesheets will speed up the invoice process and streamline your payroll process. But it will also offer several other benefits, including the following.

Straight-Forward Entry & Corrections

Hour Timesheet features a highly user-friendly format for any user to input their name and hours for each client. This is designed to be done with minimal interaction or navigation. Our mobile app helps employees easily track time while working, whether at home, in the office, or at the client’s location. Once the time is entered via the Hour Timesheet Mobile app, it’s available on any web-browser for your review.

Making corrections is straightforward with Hour Timesheet. Staffing agencies need software and a mobile app that allows the user to make corrections quickly. Additionally, when the correction is made, there needs to be a complete audit trail for reconciliation purposes, precisely what Hour Timesheet offers.

Integration with Payroll Systems

Staffing companies often look for payroll and accounting systems that can integrate with their timesheets. Hour Timesheets timekeeping software can do just that. This integration saves a significant amount of manual rekeying overhead, which adds cost and risk.  What is equally popular is software where files can be created in any format for integration with any third-party payroll solution. This allows for hours worked to be imported from time and attendance solutions and processed quickly.

Configurable Approval System

An efficient time tracking software program should include a function where managers receive an email every time a timesheet is submitted for approval. Or they should be able to choose daily consolidated updates for larger volumes. This way, they are prompted automatically for approvals. With Hour Timesheet, when they login to the portal, the approval or denial process for timesheets is accessible with just a click. Managers can add notes where needed.

The approval needs of staffing firms will change depending on the size of their workforce. That is why a configurable approval system is essential. As an example, a staffing firm with a large workforce will have several approvers at several different levels; the timesheet solution should be customizable to meet their needs and ensure automated and seamless steering at each stage. Hour Timesheet offers this kind of customizable software.

Timesheet Software and the Staffing Industry

Time tracking software is essential. It shows employers how long it takes to complete tasks and allows you, the manager, to monitor projects. Yet, with so much choice of time tracking software currently available on the market, the responsibility falls on the manager to find the right product that suits their needs and helps their staffing agency grow. Hour Timesheet’s configurable, user-friendly software is the ideal solution. For more information,  contact us today. We’d love to offer you a FREE 30-day trial of our software, because we know you’re going to love it!

1099 Integrated Billing with Quickbooks

1099 Integrated Billing with Quickbooks

Even before the rise of the pandemic, contractors were a growing part of the U.S. labor force. In 2018 contractors made up 20% of the labor market, with a prediction that contract workers could make up half of the American workforce within a decade. 

What Is A Contractor?

Contractors are professionals who provide skills or services to companies for a set period. They may be employed for a set number of hours, a specific time frame, or the duration of a project. Unlike full-time employees, companies have no payroll tax obligations, with no responsibility for the employer to offer benefits or even provide supplies to independent contractors. They can be self-employed and work independently or run their own limited company.

Why Are Companies Hesitant to Hire Contractors?

Employees and contractors are paid differently. 

Contractors or 1099s (known to the IRS) are treated as accounts payable in QuickBooks. In this system, a Bill has to be created and paid for each 1099 in the company file for each billing period. This can create tremendous work and be an extremely burdensome process if a company employs many contractors or vendors. But thanks to a new feature offered by Hour Timesheet, this type of heavy data entry is a thing of the past.

What Features Does Hour Timesheet Offer?

The Hour Timesheet software integrates with QuickBooks, and enables the contractor to input time against customers and jobs on their timesheet. When the data is exported to QuickBooks, the Bill for the contractor’s expense is already complete. It’s that simple and straightforward. Gone are the days of creating a Bill and paying it manually with each contractor and vendor.

Also, QuickBooks recommends that you set up your contractors as vendors. This way, QuickBooks can track all their related payments. Therefore, when you, their employer, need to complete their 1099, you’ve already got their information together in one place.

How Can This Help Businesses?

The answer is simple: it can save time! A company’s accountant does not have to enter each Bill for their vendor expenses manually. And with the current trend being corporations moving away from employees and moving towards 1099s for their workforce, Hour Timesheet’s software becomes even more valuable.  It will prove to be a tremendous asset for businesses’ accounting workflow process as they move into this post-COVID contractor work environment. 

Is Hour Timesheet’s 1099 Integrated Billing Feature DCAA Compliant?

Nothing has changed concerning time tracking. Every employee, including contractors, must track their hours to remain DCAA compliant. Hour Timesheet’s software makes it easier for companies to choose vendors for their project needs because they’ll be able to track their hours and then bill them efficiently. 

For more information on how you can access Hour Timesheet’s integrated billing feature for contractors, contact us here.

New Location Tracking Feature in Mobile App

New Location Tracking Feature in Mobile App

Whether you’re a contractor, manager or member of a team of employees geographically spread out, you can benefit tremendously from using Hour Timesheet’s location tracking feature. There are several advantages of this feature but it’s important to first learn how it works.

How does Hour Timesheet’s Location Tracking Feature Work?

Hour Timesheet’s location tracking feature is only available when using our mobile app. When a user log’s in, the feature will indicate from where they logged in and at what time. The same applies for when they logged out, all users can see exactly where the person was when this action took place.

Who Will Benefit Most From The GPS Time Tracking Feature?

GPS tracking is perfect for contractors working directly from home or field workers who need to work outdoors or at site. For example, construction workers might use this feature when clocking in or out at a job site. Hour Timesheet’s GPS is perfect for night-nurses who are working at a patient’s home. There are so many different kinds of employees that do not work in traditional offices who could benefit tremendously from this feature. 

What Are The Advantages of GPS Time Tracking?

1. Transparency

If a company uses Hour Timesheet’s time tracking software with GPS, everybody has a clear understanding of who is doing what. The GPS tracking feature will prove that an employee was on the clock and on location, exactly where they said they were. The proof is in the real-time reports.

2. Accuracy

With transparency comes accuracy. When an employee knows that they are being monitored they’re more likely to make less mistakes and follow the rules.

3. Data to Support Client Billing

The greater quantity of validating data you have to provide your client, the better your chances are of getting paid on time. Often accounting departments will delay the payments because they’re trying to locate more information regarding your bill. With geolocation data, you’ve lent a much greater amount of proof to the accuracy of your billing. And with our QuickBooks integration, billing will be a breeze. For more information on how Hour Timesheet’s location tracking feature can help your business contact us here.

DCAA Compliance Checklist for Time Tracking

DCAA Compliance Checklist

Government contract work can be lucrative and fascinating work. Navigating government contract process can be very tricky. It’s important to stay up to date on Defense Contract Audit Agency (DCAA) compliance regulations. It’s also critical to ensure you meet DCAA timekeeping requirements if you want to work with any federal government organization. Hour Timesheet does our best to explain DCAA compliance and we offer a product that is always up to date with regulations. The DCAA will run a pre-award audit in order to award any government contracts. You should prepare for this audit and create a list of compliance regulations for the DCAA.

What is DCAA compliance?

The DCAA was established in the 1960s to normalize the government’s contract auditing process, and to ensure the American taxpayer was getting good value for its money.

Initially, the DCAA was originally overseeing military and intelligence contracts for the U.S. Department of Defense. Later, it oversaw many other kinds of labor and service contracts that the federal government signs with commercial suppliers.

If and when you win a government contract, the DCAA timesheet compliance rules will apply to everyone in your company. Regardless of the size of your organization, this can be a big task with many training implications. It’s worth your while to make DCAA compliant time tracking as straightforward as possible. Do your research ahead of time, and try to create a DCAA compliance checklist.

Suppose the DCAA were ever to audit you. In that case, they would check three main areas to see if you comply: how accounts are established, the flow of transactions in accounting systems, and the computations derived from them.

Ready to try out Hour Timesheet’s DCAA compliant timesheet software?

1. How Accounts are Established

A DCAA Compliant Chart of Accounts

You will need to separate which financial transactions are direct, indirect, and unallowable. The DCAA will also examine your Chart of Accounts to ensure you’re adhering to the Generally Accepted Accounting Principles (GAAP). Having Accounts Payable, Prepaid Expenses, and Unearned Revenue will indicate that you’re accounting for cost and revenue on an accrual basis.

2. The Flow of Transactions in Accounting System

Trial Balance

Hour Timesheet will allow you to print a Trial Balance that summarizes your accounts’ debits and credit balances. The latter will reveal details such as the opening balance, transactions, transfers, and closing balance. The former will summarize the debits and credit balances on each of your accounts.

General Ledger Detail

The general ledger detail within the Hour Timesheet software will be able to provide you with the beginning balances for each government contract over a limited period.

3. Cost & Computations

The DCAA will audit processes used for allocating revenue and costs to projects, in addition to the way you calculate indirect rates. Many companies use QuickBooks for most of their accounting, and Hour Timesheet makes sure this doesn’t have to change. We can help make your QuickBooks DCAA complaint, ensuring it follows the rules laid out so far, and the following rules about computing revenue and expenses.

Loss & Profit by Job

An essential requirement highlighted in the pre-award survey is your accounting system’s ability to accumulate costs by project. Loss & Profit by Job reports give assurance that this can be done accurately when they agree with the standard Profit & Loss statements.

Labor Distribution Report

Labor distribution is the process of allocating labor costs both direct and indirect to the total time recorded on timesheets. Hour Timesheet allows you to directly tie both direct and indirect hours to the accounts within your accounting system. DCAA needs to see that labor costs are equally distributed among customers, both government and commercial. They want to know that no one is favored or has received a cost subsidy.

Contract Backlog Report

This type of summary allows you to see the percentage of work completed. It also shows the remaining cost to complete each job in your backlog. This type of report indicates how much money is left on a contract, as well as potential contract overrun. It also shows if there are corrective actions required as a result.

Direct Vs Indirect Labor Tracking

Contract employees must consistently track both direct and indirect cost. A direct cost is identifiable to one and only one cost objective. It is normally required or necessary for contract performance. Cost objective is a regulatory term that can include a contract, a project, a task, a contract line item.

To be compliant, government contractors must accumulate costs into indirect cost pools. This can be things such as bid and proposal or an independent research and development project. Hour Timesheet allows a contractor to track time and keep track of all accumulated costs . This is all costs related to hours worked, such as direct costs, any unallowable costs, or indirect costs. Indirect costs are all costs that are not identifiable or incurred for the benefit of one cost objective.

There are many tasks involved in preparing for DCAA auditors to analyze your accounting functions. It can be helpful to create a compliance checklist for government contracting work. Especially if you’re business is receiving government funding, such as through the SBIR and STTR programs. It’s vital that the companies participating remain DCAA compliant in order to receive their funding.

Overall, it’s important to maintain audit trails and detailed reports for all employee timesheets and time accounting. Also, make sure to always use a DCAA compliant time entry.

Hour Timesheet and DCAA Compliance Resources

Achieving DCAA audit compliance takes effort, time, and specialist knowledge. Even if you understand the regulations, you’ll also need to arrange your Chart of Accounts and configure Hour Timesheet accordingly. Having a DCAA timecard audit checklist can help you achieve DCAA complaint timekeeping, without all of the confusion.

Contact us today for a free, no commitment, 30-day trial of our software. With our years of experience, we can help you avoid potential DCAA compliance issues before an audit begins.

leave management feature

Hour Timesheet’s Leave Management Feature

With the arrival of Covid-19, the past twelve months have seen unprecedented requests for time off throughout corporate America and worldwide. Whether it has been appeals to use accrued vacation time or questions about what qualifies as sick time, managers have been bombarded with questions like never before. At Hour Timesheet, our leave management feature makes tracking any type of absence easy and straightforward. And in the current environment, our feature is needed by managers like never before.

How To Manage Paid-Sick Leave?

A paid sick- leave can take many different forms depending on what part of the country you live in. At Hour Timesheet, our software is able to manage the differing demands of sick leave. However, as a manager you’ve got to be clear what your local laws stipulate. Local paid sick leave can quickly become an administrative headache for employers who run companies in multiple counties and states. The most difficult issue for employers is trying to develop policies when the local law does not match the state law. In some states there is no statewide law, but there are local laws for paid sick leave. This is the case in states like Texas. You can see how it can get very confusing fast!

The easiest approach for employers who are operating in different jurisdictions is to conduct an audit of their paid sick leave benefits. This is the surest way to ensure they are in compliance with the laws of every jurisdiction in which they operate. A complete audit will provide valuable information that will guide the employer to make decisions about paid sick leave. These decisions will then ensure he or she is in compliance with the patchwork of state and local paid-sick leave laws.

How To Manage Paid-Time Off With The Family Medical Leave Act

The Family Medical Leave Act or FMLA allows all employees time off from their job to bond with their children, care for ill family members or recover from their own serious health problems, all without fear of losing their jobs. This act, which became law across the country in 1993, entitles employees a total of 12 weeks of unpaid leave during a 12-month period for any of the following:

  • The birth of a child and to care for the child after birth;
  • The placement of a child with the employee for adoption or foster care;
  • To care for the spouse, parent or child of the employee who has a serious health condition
  • The Employee’s own serious health condition; and
  • A qualifying military exigency.

There are many details to the FMLA, such as you’re not allowed to make your employees work while on FMLA leave. Yet, you do have the right to contact them on occasion for small details such locating missing files or updates on projects the employee was working on prior to their leave. As an employer you can’t be expected to memorize all of the finer points of this act. The beauty of software such as Hour Timesheet is that it can help you track and manage FMLA to ensure you’re adhering to the law. One less thing to worry about!

Discover Stress-Free Leave Management with Hour Timesheet

Hour Timesheet offers free leave tracking setup assistance included with every account. The advantages of our leave management feature include the following:

  • Access to leave balance detail on the timesheet
  • 24/7 access to leave information in the cloud
  • Enforcement of leave policies company-wide
  • Supervisors are alerted when employees request leave
  • Manual calculations of leave are no longer required
  • Paper-based leave request is eliminated
  • Annual carry-over values are system-managed 

Our comfortable, user-friendly, and customizable leave management feature for your employees is also available as a free app download, available in the Android and IOS apps marketplace, along with your main software.

How To Keep Track Of Employee Time Off?

The Hour Timesheet leave management feature gives employees access to leave balance data, including current balances, accrual, carry-over values. Workers can submit an online leave request with a single click. Hour Timesheet can track and manage your paid time-off, vacation, sick, and holiday with ease. If you would like to learn more about how Hour Timesheet can help you track and manage your employee time off, click here. We’re here to help show you how our leave management feature can simplify your employees’ requests for time off.

The Best Time Tracking Apps 2021

The Best Time Tracking Apps for Small Businesses 2021

Suppose you are operating a business where your employees are still manually handing in their timesheets, completed in pen and paper. Or they fill-in their hours in a spreadsheet and then send it to you only once at the end of the month. It’s time to take a look at upgrading your time tracking system. To help with your decision, here are the five best time tracking apps for 2021.

The Top Time Tracking Apps of 2021

1. Hour Timesheet

This app has several different solutions depending on your objective for selecting a time tracking software solution. The Hour Timesheet app allows its users to track the progress, the cost, location, and the amount of leave of a job. The app also allows for payroll integration, tracking billable hours, and comparing those with non-billable hours. You have various clock-in and out options, as well as the capacity for third party approvals. 

One of Hour Timesheet’s most important features is that it is DCAA compliant. This means that small businesses using Hour Timesheet are eligible to participate in any SBIR and STTR government programs. The Hour Timesheet software is designed to be easy to use, even while meeting DCAA compliance regulations.

Hour Timesheet’s time tracking app integrates with QuickBooks online and at a desktop. The app can also be used for custom integration with other third-party software options. 

2. ezClocker

It is an affordable, simple, and easy to use time tracking app. EzClocker lets its employees clock-in or out from the mobile device. Thanks to a GPS stamp, you can verify that your employees have clocked-in or out from the correct locations. 

Other ease-of-use features include employees being able to view their schedules and timesheets in real-time. In the event you need to export payroll data, ezClocker can email timesheets to anyone you need. It also provides an iPad time clock app where you limit employees to only one device for clocking-in or out. Employees can use either their Smartphone to view timesheets and schedules or their computers. Still, they can only clock-in or out using their iPad.

3. Deputy

The Deputy time card app comes with great features, including the ability to manage time attendance, tasking and team communication, and employee scheduling. Deputy also allows you to generate invoices based on activity, task, and hours worked per employee. Once they’ve been generated, you can send them straight to your preferred accounting software.

This time card app will also automatically allocate job codes, employees, and rates per invoice line. Other features include using dynamic reports to track timesheet costs, sales transactions, and other employee variables.  All of these options ensure that you stay abreast of the most recent time tracking advances.

4. TSheets

TSheets allows employees to keep their existing smartphones to quickly and efficiently track their work time. This app provides handy reminders to clock-in and out when to take breaks and all sorts of other reminders. TSheets lets employees allocate time to specific projects, custom fields, or tasks. This time tracking app can also integrate with Quickbooks and several other popular accounting software applications.

5. Replicon

Replicon has created a failsafe system to prevent the infamous buddy punching in the time tracking world. This app, which can be used with a tablet, means you can take a photo whenever an employee clocks-in to work. They also offer visual-check-ins to scan timesheets and ensure that your employees aren’t trying to play the system. Replicon also allows employees to easily access their work schedule, find assigned shifts, and request time off. 

Time Tracking Apps 

Of the five-time tracking apps featured in this article, there are approximately 100 more currently available on the market. As evident, no two applications are the same. Each time tracking app comes with certain features and benefits. As an employer, you must choose an app that suits your specific business needs and employee situation. What app might work for one business might not work for another. Most importantly, choose a time tracking app that will provide you with the necessary tools to operate and maintain a successful business.

Online Employee Time clock

Guide to Online Employee Time Clocks

Having a remote workforce is the new “normal” in today’s environment which creates new challenges in workforce management. Enter Hour Timesheet Mobile, it provides a secure, reliable, and accurate way to allow employees and contractors an easy way to clock in and out as well as document time away from “their desk”.

Who Needs Hour Timesheet Mobile Time Clock?

  • Any organization with mobile and remote employees who no longer have access to a physical time clock.
  • Organizations who have workers that travel as part of their job.
  • Organizations looking to track job cost at the web clock interface.

Simplify Punching In and Out and Streamline Your Payroll Work-Flow Processes

Our online employee time clock includes various features allowing management to streamline the employee’s timecard data.

1.     Clock-in/Clock-out

2.     Add Project Hours

3.     Add Leave Hours

4.     Add Timesheet Notes

5.     Access to Leave Balance Data

HTS can help your organization with the 5 C’s.

COMPLIANCE. The online employee time clock makes tracking breaks and overtime easy. That helps you stay compliant with state, federal, and municipal regulations.

COMMUNICATION Keep abreast of what is going on even when you are not there in person. The online employee time clock will provide alerts when employees fail to show up for shifts or when they’re approaching overtime.

COST. Track job cost and have access to real-time reports to help you evaluate your overhead cost associated with absence time and overtime.

CALCULATIONS Our online employee time clock does the busy work of calculating time cards for you. The includes regular and overtime hours worked, paid time off hours, and more. Our app will save you valuable time by computing your timecards automatically. Your timesheets will start to reflect your payroll expenses.

CONNECTIONS Hour Timesheets offers various reporting formats for payroll, including Excel and CSV export, PDF, or more simply a paper copy. Our time clock system can easily integrate with various well-known payroll providers, including QuickBooks and ADP.

Online Employee Time Clock

If you’re tired of having to wade through the mountains of timecards and reports regularly, then now’s the time to join the 21st century with Hour Timesheet’s Online Employee Time Clock.  Our easy-to-use application offers a multitude of features and is highly customizable. Your employees do not require training to use the application, and there is no hardware required either. It really could not get any easier.

Time Is Money And Every Minute Counts

Contact Hour Timesheet today to learn more about our app.

FLSA Timekeeping

FLSA Timekeeping Do’s and Don’ts

According to the Fair Labor Standards Act or FLSA, employers must keep accurate records of non-exempt hourly employees. This might seem like a straightforward process. However, it can become too complicated when, for example, your employees travel for work, punch-in early or leave late, or use mobile devices to remain connected to work after hours. The following is a brief overview of some of the do’s and don’ts to help you manage your timekeeping responsibilities.

Do:

1. Use a reliable timekeeping system.

You may choose to use a timekeeping method such as an hour timesheet app or something else, including time clocks, badge readers, timesheets. Yet FLSA timekeeping requirements stipulate it allows employees’ hours for uncertainty or inefficiency (to a maximum of 15 minutes).  You must apply the rounding policy fairly and can’t always round in favor of your company. Please note some states place limits on time rounding. Check all applicable laws before you start using this policy and consider your timekeeping system before applying a time rounding policy.

2. Any and all time worked must be recorded.

Whether it’s time spent checking phone messages, replying to texts, work emails, accessing the company network, or performing other work tasks, all of this considered compensable work time. That’s why non-exempt employees must understand what constitutes work. Then make an effort to report all time spent working outside of standard work hours according to FLSA timekeeping requirements. In a situation where employees can’t use your regular timekeeping system to record after-hours work, it is your responsibility to instruct them on how to promptly and correctly report these hours.

3. Reclassifying breaks as work time.

According to FLSA timekeeping requirements, all rest breaks must be paid if they are 20 minutes or less in duration. Thus, be careful not to let your employees punch out for breaks that last less than 20 minutes or less. Remember, it’s the break’s length, which determines whether payment is required, never the reason for the break.

4. Record training and travel time.

According to FLSA timekeeping requirements, you must compensate employees for any non-productive time in addition to time spent working. Non-productive time can be considered time spent traveling or in training. For instance, if one of your employees spends time traveling overnight for work, he or she must be paid for all time that cuts across their regular work hours, regardless of whether the travel occurs on their regular workday. As their employer, make sure you understand the rules on compensable training and can instruct employees on how to record their time correctly.

Don’t:

1. Never withhold pay if employees fail to submit or sign their timesheets.

According to FLSA timekeeping requirements, an employer must pay employees for all hours on the next regularly scheduled payday. Whether or not the employee has adequately followed the company’s timekeeping procedures.

2. Never withhold pay for unauthorized work time.

Employers may already have a policy in place that requires employees to get permission before working overtime. Yet, according to FLSA timekeeping requirements, employers must pay non-exempt employees for all time worked. That is irrespective of whether it was authorized in advance.  If this policy is not respected by the employees, the employer can introduce disciplinary action. But they can never withhold pay.

3. Do not make automatic deductions for meal periods.

As an employer, it’s in your best interest to require employees to clock out and back in from their meals. This can help ensure that they are paid for missed lunch breaks. It also accounts for instances when employees return from lunch late. Their time records will accurately reflect that they took a meal during the period in question and for how long.

4. Never neglect your recordkeeping responsibilities.

According to FLSA timekeeping requirements, employers must hold on to their time cards and other such records from which wage calculations are gathered for at least two years. Additionally, employers must keep payroll records, including hours worked each day and total hours worked each workweek, for a minimum of three years. These records are necessary for federal tax purposes and must be kept for a minimum of four years.

Hour Timesheet & FLSA Timekeeping Requirements

It sounds simple enough: stay on top of your timekeeping. But when you’re busy running a business, this can be easier said than done. You can quickly get busy, overwhelmed, and the next thing you know, you’ve fallen behind. That’s why it’s essential to develop policies and procedures to ensure that you keep accurate time records for all non-exempt employees. This way, you can ensure they’re being paid adequately for the time they’ve spent working.

time card calculator - hour timesheet timecard time tracking software

Top 5 Reasons You Need a Time Card Calculator

As the owner of a business you certainly understand one of the most tedious parts of running your organization is calculating timecards. When you think of all the things you have to do including creating and executing your marketing strategy, maintaining your inventory and simply ensuring the company operates smoothly, the last thing you feel like doing is calculating time cards. Besides who has time to do it? That’s why a time card calculator is so incredibly invaluable and where Hour Timesheet can help.

Hour Timesheet’s Time Card Calculators

At Hour Timesheet we have time card calculators that can alleviate the stress and strain of tracking employees’ hours. Our calculators accurately track and total timecard hours automatically. They can eliminate unwanted overtime with their programmable clock-in and out rules. Our calculators can be simply installed on your PC, Mac, Windows tablet or portable Smart device.

Saves Time & Money

The biggest advantage of using a time card calculator is that it saves time and money. Either you or your Human Resources Department will save both time and money collecting, calculating, correcting and processing employee timesheet. Instead thanks to the online calculator it will significantly reduce the time it takes to do this.  Using a calculator will enable employees to focus on their jobs at hands. They will no longer have to worry about tracking and recording the time they spend working each day, week or month and can dedicate their time on what they were hired to do-work!

Reduces the chance for errors

If you take a moment and think about the opportunity for errors when you’re recording and calculating employee hours, especially when factors such as overtime, and holidays are all factored into the equation you begin to realize how easy it is to make an error. Something as easy as a misplaced decimal can lead to a serious accounting error and a serious loss of income for an employee. Not to mention a problem for you! It goes without saying that time calculations for payroll must be accurate. Your employees depend on those results and you depend on them to ensure your business runs smoothly. Our time card calculator does the math for you automatically. Instead of having to manually using one, our time tracking calculator reduces human error and helps prevent any miscalculations. The result is that your employees get paid what they’re entitled to and you can rest assured it’s accurate.

Encourages Compliance

There are state and federal labor laws that were created to help control things like record keeping, overtime and wages. Yet, these can be difficult to track and keep up with, particularly if you’re using an outdated employee time and attendance system. Hour Timesheet’s timecard calculator can help your business adhere to these laws. It can even help owners and managers use break times and overtime options that are provided as an added feature to ensure they are staying compliant.

Discourages Time Theft

Time theft sounds harmless enough unfortunately it’s far more detrimental than one would think. First it comes in many forms including taking a longer coffee or lunch break than allotted. Or clocking-in a friend when they’re going to be late to work. Whether the action is intentional or not, it can cost you the business owner or manager a tremendous amount of money. At Hour Timesheet, by using our time card calculators in conjunctions with automated time and attendance systems, you can help stop time theft in its tracks.

Time Card Calculators – A Useful Tool for Business

There are some business owners or managers who argue that a time card calculator is a useful tool for their enterprise. At Hour Timesheet we say they are an essential item. A time tracking calculator is easy-to-use and improves the efficiency with which your business operates. Not only does it reduce errors, but it saves you time, money, increases compliance and discourages time theft. Who wouldn’t want a tool in their business arsenal that does that?