Managing Employee Time Off: A Guide for Business Owners

As a small business owner, managing employee time off can be a challenging task, especially during the holiday season. It is essential to strike a balance between respecting your employees’ rights to personal time and ensuring that business operations continue smoothly. One key aspect of this process is understanding how to effectively handle requesting leave from your staff.

Setting a Clear Leave Policy

First and foremost, it is crucial to familiarize yourself with your company’s comprehensive leave policy. This policy should not only define the procedure for employees requesting leave but also provide clarity on who they should submit their request to and the specific timeframe within which they need to do so. By ensuring that this policy is effectively communicated to all staff members, it ensures that everyone is well-informed and understands the process in its entirety. This level of detail and transparency helps create a smooth and efficient leave management system within the organization.

The Employee Handbook and Documenting Clear Guidelines

The employee handbook plays a fundamental role in clearly documenting leave policies and guidelines for managing employee time within the organization. This comprehensive guidebook should detail everything from the process of requesting time off to the specific rules and stipulations associated with each type of leave.

  1. Annual/Vacation Leave: Your handbook should clarify how many vacation days employees are entitled to, how to request them, and if these days roll over if unused. Clearly specify if vacation time increases with tenure.
  2. Sick Leave: Document the process for reporting sick days, any requirement for a doctor’s note, and whether unused sick days can be carried over into the next year.
  3. Maternity/Paternity Leave: Detail your organization’s policy on parental leave, including the duration and any conditions relating to pay. Make sure to comply with any legal requirements related to family and medical leave.
  4. Bereavement Leave: Specify the number of days allowed and define what relationships qualify for bereavement leave.
  5. Jury Duty/Civic Duty Leave: Indicate whether employees will be paid during their jury service and how they should keep the company informed.
  6. Unpaid Leave: Describe the circumstances under which unpaid leave might be granted, along with the process for requesting such leave and its impact on benefits.

The employee handbook should be written in plain, easy-to-understand language, and it should be easily accessible, either in a printed format or online. Regular updates should be made to reflect any changes in law or company policy. A well-documented, clear, and comprehensive handbook can help prevent misunderstandings and ensure that everyone is on the same page when it comes to managing time off.

Earning and Accruing Leave

Leave accrual within an organization usually depends on its specific policy and the nature of the employment contract. However, there are few common ways for managing employee time.

  1. Time-Based Accrual: In this model, employees earn leave based on their length of service. For instance, an employee may accrue a certain number of leave hours for every month or week of service. This method typically benefits longer-tenured employees.
  2. Worked Hours Accrual: This system allows employees to accumulate leave based on the number of hours they’ve worked. For example, for every 30 hours worked, an employee might earn one hour of leave. This model is often used in part-time or irregular hour jobs.
  3. Flat Rate Accrual: Here, employees receive a fixed amount of leave annually, regardless of hours worked or length of service. This is often seen in full-time employment contracts where every employee gets the same amount of leave at the start of each year.
  4. Unlimited Leave Policy: Some organizations, especially in the tech industry, offer unlimited paid time off. Employees can take as much leave as they need, as long as their work is complete and their team isn’t adversely affected.
  5. Incremental Accrual: In this system, the rate at which employees earn leave increases the longer they stay with the company. For instance, during the first two years, an employee may earn two weeks of leave per year, but after two years, they start earning three weeks per year.

Each of these methods has its own benefits and drawbacks, and the choice often depends on the company’s size, culture, and resources. It’s important for organizations to clearly communicate their leave accrual policy to avoid confusion and ensure transparency.

Managing Employee Time : Paid Leave vs. Unpaid Leave

It’s essential to differentiate between paid and unpaid leave within your leave management strategy.

Paid Leave: This is time off where employees continue to receive their regular pay. Types of paid leave commonly include vacation leave, sick leave, and certain types of family leave. Paid leave is an attractive benefit for employees, helping to improve job satisfaction and retention. Employers often find that providing paid leave can enhance productivity and morale by ensuring employees have ample opportunity to rest and recharge.

Unpaid Leave: In contrast, unpaid leave is time off that is not compensated. Employees might take unpaid leave for a variety of reasons, including extended personal illness, caregiving responsibilities, or a sabbatical. While unpaid leave might not be as beneficial to employees in the short term, it offers flexibility and can be used as a tool to retain employees who need extended time off for personal reasons.

It’s important to clearly document and communicate the conditions and procedures for both paid and unpaid leave in your company’s handbook. This way, employees understand their rights and the potential implications of their leave choices.

Using a Leave Management System

Consider using a leave management system like Hour Timesheet to track and manage employee leave balances. This software can help streamline the “request leave” process, making it easier for both you and your employees to keep track of leave balances.

In conclusion, managing employee time off is a crucial aspect of running a small business. Ready to simplify leave management in your small business? Try Hour Timesheet – it’s the reliable solution for tracking and managing employee leave balances.

Sign up now for a free trial and experience the difference it can make in your business.

Expert Tips to Manage Leave Efficiently as We Approach Year-End

As we are nearing the end of the year, effective leave management becomes crucial for every organization. This process involves managing time-off requests, from ordinary paid time off (PTO) to Family and Medical Leave Act (FMLA) leaves, bereavement, and more. Here’s an in-depth look at how you can better manage leave and ensure a smooth transition into the new year.

Understanding Leave Management

Leave management, also known as time-off management, is the process of handling employee leave requests. These may include holidays, sick leaves, vacations, emergencies, and parental leaves. The aim is to balance the needs of the employees with the operational requirements of the business.

Best Practices to Manage Leave

Establish Clear Leave Policies: The first step is to have a well-defined leave policy. It should cover all possible scenarios and be compliant with local labor laws.

Communicate Policies Clearly: Once the policies are in place, they need to be communicated effectively to all employees. This ensures everyone understands their rights and responsibilities when it comes to taking leave.

Consolidate All Leave Requests: Having a centralized system for managing leave requests can help reduce administrative burden and improve efficiency.

Follow and Review Attendance Policies: Regularly reviewing your attendance policy helps control excessive employee absenteeism.

Use an Effective Leave Management System: A comprehensive HR tech tool can enable organizations to track employee leave requests online. This can significantly simplify the process of managing leaves.

Year-End and Leave Management

As the year-end approaches, employees often rush to utilize their remaining leaves. This can pose challenges to businesses, especially if not managed effectively. However, with a clear leave policy and effective communication, businesses can ensure smooth operations while respecting employee rights.

In conclusion, to manage leave effectively, it’s important to understand the laws, outline clear policies, communicate these policies, and utilize technology to streamline the process. As we approach the year-end, now is the perfect time to review your leave management practices and make necessary adjustments for the coming year.

Remember, an efficient leave management strategy can boost employee satisfaction, reduce administrative work, and ensure business continuity. So, start planning now to manage leave effectively in the upcoming year.

Enhancing Leave Management with Hour Timesheet

Hour Timesheet, a cloud-based time tracking solution, can streamline leave management in multiple ways.

Automated Leave Tracking: The software automates leave request processes, eliminating the need for manual tracking on spreadsheets. With a few clicks, employees can apply for leave, and managers can approve or deny requests in real-time.

Centralized Hub: Hour Timesheet acts as a centralized hub for all leave-related information, providing a clear overview of who’s off, when, and why.

Compliance: It supports compliance with labor laws by ensuring accurate record-keeping for leave balances.

Reporting: Advanced reporting capabilities allow businesses to make data-driven decisions and identify trends in leave usage. By adopting Hour Timesheet, companies can make their leave management process more efficient, transparent, and fair, contributing to improved employee satisfaction and productivity.

We invite you to schedule a demo with us. Witness firsthand how this tool can increase your efficiency, ensure compliance, and provide valuable insights through advanced reporting. Don’t miss this opportunity to streamline your leave management process.

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Colorado’s FAMLI Leave and How Hour Timesheet Simplifies its Management

The landscape of employee benefits is changing in Colorado. In 2023, the state introduced the Family and Medical Leave Insurance (FAMLI) program, a new legislation designed to provide paid leave for workers facing family or medical emergencies. The program officially starts providing benefits from January 1, 2024. While this is great news for employees, it presents an additional layer of complexity for employers who must track and manage this new type of leave. This is where Hour Timesheet comes into play.

Understanding Colorado’s FAMLI Leave

Passed by Colorado voters in 2020, the FAMLI Act allows most workers in Colorado to receive up to 12 weeks of paid family and medical leave per year. This can be used for a variety of reasons, from bonding with a new child to caring for a seriously ill family member, recovering from a personal illness, or addressing issues related to military service or domestic violence.

While the Colorado’s FAMLI Leave program doesn’t start until 2024, businesses are required to begin collecting premiums starting on January 1, 2023. The first two years of the program charge premiums at 0.9% of the employee’s wages, with the employer and employee both contributing 0.45%.

How Hour Timesheet Can Help

Tracking and managing this new type of leave can be challenging, especially for businesses that are already juggling multiple types of time-off requests. Hour Timesheet, a comprehensive timekeeping software solution, is designed to simplify this process.

Easy Leave Tracking: With Hour Timesheet, employers can easily track FAMLI leaves along with other types of paid and unpaid leaves. The system allows you to create custom leave categories, making it simple to separate FAMLI leaves from other types of time off.

Automated Calculations: Hour Timesheet automatically calculates the amount of leave taken and available for each employee. This feature eliminates manual calculations, reducing the chances of errors and ensuring accurate tracking of FAMLI leaves.

Compliance Reporting: Hour Timesheet also provides robust reporting tools that make compliance easier. You can generate detailed reports showing when and why FAMLI leaves were taken, helping you stay compliant with state regulations.

Integration Capabilities: Hour Timesheet integrates seamlessly with your payroll system. This makes it easy to deduct correct Colorado’s FAMLI Leave premiums from each paycheck and ensure that employees are paid correctly during their leave.

In conclusion, while Colorado’s new FAMLI leave presents a new challenge for employers, tools like Hour Timesheet can simplify the management of this new requirement. By automating tracking and calculations, providing robust reporting tools, and integrating with existing payroll systems, Hour Timesheet makes it easy to manage FAMLI leaves and stay compliant with Colorado’s new legislation.


Understanding U.S. Sick Leave Laws

As an employer, one of your key responsibilities is to ensure your business adheres to various state and federal laws. Among these, sick leave laws hold a prominent place. Non-compliance can lead to a myriad of consequences, ranging from penalties and fines to lawsuits and damage to your company’s reputation. However, navigating through the labyrinth of sick leave laws across different states can be quite a daunting task. That’s where our product, Hour Timesheet, steps in to streamline this process for businesses.

The Importance of Compliance

Before we delve into the specifics, let’s understand why adherence to sick leave laws is crucial. Sick leave policies are designed to protect employees’ rights to take time off from work when they are unwell. As an employer, you are legally bound to provide this benefit in accordance with the law. Failure to do so could result in legal action against your company, hefty fines, and a tarnished reputation. Moreover, providing sick leave benefits helps foster a healthier, more productive work environment.

The Complexity of Sick Leave Laws

The United States does not have a federal mandate for paid sick leave. Instead, sick leave regulations vary from state to state, making it a complex landscape for employers to navigate. Some states mandate employers to provide paid sick leave, while others do not. The specifics of these laws, such as accrual rates, carry-over provisions, and permissible uses, also differ widely.

For instance, in California, employees earn at least one hour of paid leave for every 30 hours worked. In contrast, New York’s Earned Sick Time Act requires employers with five or more employees to provide paid sick leave at a rate of one hour for every 30 hours worked, up to 40 hours per year.

Given this diversity, keeping track of sick leave laws and ensuring compliance can be a formidable task for businesses, especially those operating across multiple states.

Simplifying Compliance with Hour Timesheet

This is where Hour Timesheet comes into play. Our product is designed to simplify the process of tracking employee sick leave and ensuring compliance with state laws. Here’s how Hour Timesheet can assist:

Accurate Tracking:

Hour Timesheet allows for precise tracking of sick leave accruals and usage, ensuring that you’re always up-to-date with each employee’s sick leave balance.

Customizable Policies:

With Hour Timesheet, you can customize sick leave policies to match the specific laws of each state where your company operates. This feature ensures seamless compliance, regardless of geographical diversity.

Automated Calculations:

Say goodbye to manual calculations. Hour Timesheet automatically calculates accruals based on the set policies, reducing the chances of errors and saving you valuable time.

In summary, staying compliant with sick leave laws is not only a legal requirement but also a testament to your commitment to your employees’ well-being. With Hour Timesheet, you can ensure seamless compliance, thereby saving time, avoiding penalties, and fostering a healthier work environment.

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Managing Indirect Rates with Hour Timesheet

As a government contractor, managing your indirect rates is of utmost importance if you want to bid on government contracts. However, keeping track of indirect rates can be a daunting task, especially for small businesses without sophisticated accounting systems. In this blog post, we will dive into how Hour Timesheet can help small businesses manage their indirect rates efficiently and stay in compliance with DCAA regulations.

What Are Indirect Rates?

Indirect rates are those expenses that cannot be directly attributed to a specific project, such as overhead costs like rent, utilities, and fringe benefits. Tracking and monitoring these indirect rates is necessary to ensure that your company is not overcharging the government and, ultimately, maintaining compliance with DCAA regulations.

Moreover, maintaining optimal indirect rates can help your business stand out in the crowded government contracting space. Companies with low indirect rates have a competitive edge over those with higher rates when it comes to bidding on government contracts.

Types of Indirect Rates

Fringe Benefits: This category includes costs related to employee benefits, such as health insurance, retirement contributions, and paid time off. Examples of costs in this bucket are:

  • Health and dental insurance premiums
  • Life insurance premiums
  • Retirement plan contributions (e.g., 401k matching)
  • Vacation, sick leave, and holiday pay

Overhead: Overhead costs are associated with the general operations and administration of a company but are not directly tied to a specific contract or project. Examples of overhead costs include:

  • Office rent and utilities
  • Office supplies and equipment
  • Depreciation on office furniture and equipment
  • Salaries and wages for support staff (e.g., administrative assistants, human resources personnel)

General and Administrative (G&A): These costs are related to the overall management and administration of a company. G&A costs are often incurred at the corporate level and cannot be directly linked to a specific contract or project. Examples of G&A costs are:

  • Executive salaries and bonuses
  • Legal and accounting fees
  • Marketing and business development expenses
  • Corporate insurance premiums

How Does Hour Timesheet help with managing indirect rates?

Hour Timesheet is a cloud-based time tracking software that allows employees and contractors to track hours worked in real-time. With Hour Timesheet, businesses can analyze and aggregate the total billable hours, allowing visibility of the entire workload and all costs incurred, including indirect costs.

Hour Timesheet makes it easy to manage indirect rates by automatically calculating the total billable hours and integrating with your internal cost accounting and other financial systems. With Hour Timesheet, businesses can input and track all indirect costs incurred, providing immediate visibility into indirect cost rates by project and company, making calculations for future submissions more manageable.


Hour Timesheet provides government contractors with a powerful tool to manage their indirect rates and ensure compliance with DCAA regulations. The software makes it easy to track indirect expenses, integrate with other financial systems, and calculate indirect rates for each project and company-wide. With Hour Timesheet, businesses can stay on top of their indirect rates, remain competitive in the government contracting space, and avoid costly compliance issues.

Start your 30-day free trial of Hour Timesheet today!

8 Things You Should Know About DCAA Compliance

The government frequently extends contracts to small- and medium-sized government businesses to cover its varied needs. Winning such a contract offers businesses a tremendous financial opportunity, but it comes with some essential responsibilities.

The U.S. Department of Labor (DOL) and the Department of Defense (DoD) work with the Defense Contract Audit Agency (DCAA) to ensure financial oversight of government contractors and their employees.

If your business has recently won a government contract, you are likely to have some questions regarding what you should know about DCAA compliance.

8 Things To Know About DCAA Compliance

Here are the eight facts that we believe are important facts that  you need to know about DCAA compliance.

1. The founding of the DCAA and its mission

The DCAA was founded under the DoD to provide transparent financial services to ensure proper use of taxpayer dollars when the government signs small- and medium-sized businesses for contracts. The DCAA’s mission is to provide regular audits and financial oversight and work according to the authority and control of the Secretary of Defense to guarantee that the U.S. military has all the resources it needs at fair prices.

2. Guidelines for DCAA compliance

DCAA compliance focuses on a small contractor’s systems and diligent efforts to meet the stringent demands of a DCAA audit. There are two sets of guidelines government contractors must follow:

  • Federal Acquisition Regulation (FAR) Standards
  • Cost Accounting Standards (CAS)

3. What DCAA compliance covers and entails

Government contractors need to comply with various regulations and requirements, including the following:

  • Documented policies set forth by the DoD, DOL and DCAA
  • DCAA-compliant business systems
  • Accounting systems that track costs for various costs separately from nongovernmental business relationships
  • Job timekeeping records combined with cost accounting
  • Readily available auditing records for a DCAA-initiated audit at any time

4. The DCAA audit process

Any time the DCAA deems it necessary, the body will initiate an audit to examine costs, such as direct or indirect costs, unallowable costs or the pooling of indirect costs outlined in FAR, CAS and Government Auditing Standards.

5. Different types of DCAA audits

Different types of DCAA audits include those related to incurred costs, forward pricing, precontract award, labor charges, compensation and benefits, and contractor purchase systems review (CPSR).

6. Timekeeping audits can occur at any time

Government contractors should remain fully compliant and prepared for a full-fledged DCAA audit at any time. One frequent audit that DCAA auditors regularly conduct is related to timekeeping-specific examinations.

7. Basic protocols for a DCAA audit

When a DCAA audit is triggered or determined, an auditor will visit the contractor’s business site. The contractor should be ready to provide all requested documents, including:

  • Time entries for workers
  • Submission and approval procedures
  • Verification documents for paid and unpaid time
  • Time spent on each individual project

8. General risk thresholds that trigger audits

There are different risks that might trigger a DCAA audit, such as contracts on a specific job that cost the DoD more than $1 million. Another risk might involve those having recurring issues with their accounting systems and timekeeping records. These contractors might experience audits if their contracts fall well below the $1 million mark.

Our Solutions Will Help You Ensure Consistent Time Tracking Processes

With Hour Timesheet, our time tracking software will keep your payroll department and employees on point and compliant with your government contract.

Contact us to learn about our integrated system that will allow you to access vital employee time tracking information in an instant.

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Hour Timesheet can Simplifies Time and Attendance for Government Contractors

Economic uncertainty is something that affects everyone, especially small business owners. Government contractors are no exception, and the current climate only heightens that uncertainty. However, there are ways to mitigate risk and take advantage of growth opportunities. A robust time and attendance software can help companies navigate these uncertain times by providing the necessary data and tools to make informed decisions. Continue reading to learn how Hour Timesheet can help simplify Time and Attendance for Government Contractors.

Ensure Compliance in Time and Attendance for Government Contractors

One of the fundamental ways that time and attendance software can help government contractors is by ensuring that timekeeping is accurate and in compliance with complex government regulations. The consequences of non-compliance can be severe, leading to penalties, damaged reputation, and even losing valuable contracts. With a robust time and attendance system, companies can track and verify hours worked, overtime, compensatory time, and leave, ensuring that everyone gets paid correctly, and the company stays in compliance with regulations.

Increase Workforce Efficiency and Productivity

Time is a scarce resource, and government contractors need to ensure that their workforce is maximally productive to stay competitive. By implementing a time and attendance software, companies can automate manual workforce management tasks like scheduling, time-off requests, and shift management. Doing so can significantly reduce administrative workload while improving employee engagement and satisfaction.

Accurately Calculate Indirect and Direct Costs for Government Contractors

Inaccurate workforce costing can lead to overspending and hurt profits in government contracting. By tracking personnel costs down to the project and cost center level, contractors can make better decisions about resource allocation, proposal pricing, and lower indirect costs. Time and attendance software can also help government contractors better understand the return on investment of their workforce and optimize their workforce. Further, using a time and attendance system that delivers real-time data can reveal areas where they are costing excessively, thus enabling contractors to make informed decisions that improve their bottom line.

Increase Data Accuracy and Security

One persistent challenge that government contractors face is ensuring data accuracy and security. Time and attendance software can help resolve these issues as the best solutions offer several tools created to secure data accuracy and security. These include biometric authentication, time-logging tools that offer capture images, self-service portals that allow employees to check their data to help catch errors early, and strong firewalls that discourage unauthorized access. With the right software, government contractors can minimize risks and ensure data integrity.

Easy Integration With Financial and HR Systems

Lastly, a competent time and attendance system can work seamlessly with other systems in a company, helping to streamline business operations. Government contractors can easily integrate their accounting, financial, and HR system with a time and attendance tool. Integrations improve data accuracy across all business functions, save time, and the accuracy of reports.


In times of economic uncertainty, data and analytics are essential for government contractors to prosper. By implementing time and attendance software such as Hour Timesheet, government contractors can take advantage of data and insights. It provides the necessary tools to make informed decisions, comply with government regulations, and optimize labor costs. With so many benefits to reap, implementing a time and attendance system is a wise move that will set your government-contracting business up for success. Start your free trial today to see how learn how Hour Timesheet simplifies Time and Attendance for Government Contractors.

How Accurate Timekeeping Benefits Remote Workers

As the number of remote employees grows, employers need to understand the importance of accurate employee and contractor timekeeping. For government contractors who often use a timesheet system, it’s important to ensure that all employees are accurately tracking their hours and work activities. Here’s why accurate timekeeping is an essential part of managing remote workers.

Accurate Records Ensure Compliance with Laws and Regulations

When managing remote workers, it’s important to have accurate records for compliance with laws and regulations. Government contractors must comply with specific labor laws and regulations, such as the Fair Labor Standards Act (FLSA). The FLSA requires employers to keep accurate records of all employee hours worked, wages paid, and other payments made. Accurate employee and contractor timekeeping helps employers maintain compliance with these labor laws and regulations.

Improved Productivity for Remote Employees

Accurate employee and contractor timekeeping also helps increase productivity by providing visibility into how much time is actually being spent on tasks. Employers can identify areas where employees may be spending too much or too little time on their assigned tasks. This allows them to adjust workloads as necessary or provide additional training or resources if needed to ensure that tasks are completed efficiently. Having an understanding of each employee’s workflow also helps managers better assess performance levels over time.

Tracking Performance Metrics for Remote Workers

Accurate employee and contractor timekeeping also provides visibility into performance metrics like average completion times for projects or customer service response times. By understanding how quickly tasks are being completed by each employee, managers can more easily identify areas where improvements need to be made or processes can be streamlined for better efficiency overall. Accurate timekeeping data is especially useful for non-salaried staff who are paid hourly because it makes it easier to calculate total hours worked per week or month by each employee.


Accurate employee and contractor timekeeping is essential for managing remote workers—especially those in highly regulated industries like government contracting. Accurate records help companies remain compliant with various labor laws and regulations while also improving productivity and giving managers visibility into individual performance metrics like completion times and customer service response times. Employers should strive to implement an effective system such as Hour Timesheet for accurate timekeeping in order to maximize the benefits associated with having a remote workforce.

What Is the Difference Between DCMA and DCAA?

If your organization has been awarded a government contract, you need to understand two government contract agencies that require your compliance: DCAA (Defense Audit Contract Agency) vs. DCMA (Defense Contract Management Agency).

As of December 2021, the Department of Defense (DoD) reported working with approximately 20,000 contractors within the DOD’s area of responsibility.

With so many government contract organizations spread throughout the world, it’s crucial that the U.S. government develops and regularly updates regulations that keep the DoD and contract organizations aligned in their goals and according to government regulations.

What Is the the Defense Audit Contract Agency (DCAA)?

The Defense Contract Audit Agency (DCAA) is a government agency connected to the DoD, working on behalf of various government agencies.

The DCAA functions to ensure consistent compliance with government regulations such as Defense Federal Acquisitions Supplement (DFARS), the Cost Accounting Standards (CAS) and the Federal Acquisition Regulation (FAR).

What Does the DCAA Audit Cover, Entail and Establish?

The DCAA performs regular audits on government contracted organizations to ensure that each one follows the government’s recommendations and regulations to the letter. Every contractor that applies for and is awarded a government contract understands that it could be selected to undergo a Defense Audit Contract Agency audit at any time.

DCAA compliance means that, per the outcome of the audit, the government contractor follows the federally established guidelines and may proceed with the contract.

Who Needs to Maintain DCAA Compliance?

Every contractor awarded a government contract from the DOD and other government agencies must follow all the federally established laws and guidelines. It is impossible to know if or when a contractor might receive an audit, so it is imperative that contractors commit to continuous compliance.

How to Stay DCAA Compliant

Government contractors must focus on documenting and accounting for various expenditures related to their business, including:

  • Hiring
  • Employee time management and payroll
  • Equipment needs
  • Any other financial factors related to the organization’s ongoing operations

The Risks and Penalties of Non-Compliance

If a government contractor is found to be non-compliant in one or more areas during an audit, they risk not being able to apply for future government contracts offered by the DoD.

What Is DCMA?

The Defense Contract Management Agency (DCMA) focuses on a part of the DoD that works directly with government contractors to ensure the government is getting the most value and highest quality from each mutual engagement. Operating under the direction of the Under Secretary of Defense for Acquisition, Technology and Logistics, the DCMA is a relatively new area and focal point.

The agency manages each contract issued by the DoD and oversees matters like the delivery of materials and disbursement of requested funds for government projects.

The DCMA is more proactive and cooperative, working in tandem with government contractors to ensure mutual success, rather than what is more of an accountability or watchdog function of the DCAA (Defense Contract Auditing Agency).

The Compliance Requirements for the DCMA

Government contractors must meet certain criteria and expectations to ensure DCMA compliance, including setting and adhering to a specific schedule agreed to in the proposal. They must also prove that they are compliant with agreed upon bookkeeping, time tracking and finances.

The DoD provides each government contractor with at least 32 specific guidelines to follow.

Similar to the DCAA non-compliance penalties, government contractors may lose the ability to apply for and secure future government contracts. Worse penalties involve the cancellation of the current contract.

The DCMA vs. DCAA: How Different Are They?

The DCMA and DCAA primarily differ in the way that each agency interacts with government contractors and the overarching requirements.

Our Time Tracking Software Can Keep You DCAA Compliant Without Worry

Our time tracking solutions at Hour Timesheet can help you achieve and maintain ongoing, pitch perfect DCAA compliance as a government contractor to keep your current contract and receive many more.

If you’re ready to tighten up your time tracking activities and keep the Defense Contract Auditing Agency happy, start your free trial today 

How To Keep Track Of Employee Hours

Time tracking remains the most effective way to measure your employees’ value to your business. It is also the most practical way to pay them for their commitment and service to your organization. That’s one reason why it is so important to find out how to keep track of employee hours.

Additional benefits of learning how to track employee time worked include Defense Contract Audit Agency (DCAA) compliance, accurate payroll reporting, employee performance, time management, project progress, billing clients, and identifying potential issues and problems. Now that we have some thoughts in mind about why employee time tracking is so important, let’s dive deeper into this topic.

Tracking Employee Work Hours

Considering all the benefits of tracking employee time, you are probably wondering about the best way to do it. These days, you have plenty of options, ranging from manual pen and paper techniques and desktop timeclocks to comprehensive automated time tracking software programs that do it all.

Like most businesses, you probably don’t have time to take the traditional route and would rather find a user-friendly, high-functioning and customizable software tracking tool. You might find yourself lost in a sea of time tracking technology, requiring guidance regarding what you need along with best practices and standards.

What to Look for in Time Tracking Software

You might not know how to start your search with so many software options available. Here are four things to look for in time tracking software.

Payroll Integration

Payroll integration allows your payroll system to sync with other software programs. With integrated payroll capabilities, you can quickly and easily access vital information, including historical time and attendance records, all signed documentation from all employees, information about employees’ benefits and tax details, and workers’ compensation files.

Track Employee Hours and Job Costs

Job costing is a method included in different time tracking software that allows you to track all costs and revenue attached to each project. You can track everything from human resource investments to material costs and more.

Leave Tracking

Leave tracking is a crucial feature included with time tracking software, ensuring that your HR team and employees always know the status of vacation, PTO and sick time. Anyone who has managed leave time manually knows that requests for leave slips can fall through the cracks. Leave tracking also lets employees check their available time to avoid any missteps or confusion before making vacation plans. Finally, time tracking software’s inclusion of leave tracking lets everyone in the office know when an employee is out of the office.

Location Tracking

Employees who work remotely or who are frequently away from their desks can let other workspace members know where they are with location tracking capabilities enabling them to not only track employee work hours from Hour Timesheet’s simple and free mobile app.

Frequently Asked Questions

Is your software DCAA compliant?

Yes! Hour Timesheet provides detailed audit documentation, manager approvals and daily employee reminders to enter time tracking information, including authorized charge codes.

Will my team still need to do any manual data entry?

You won’t need to do much manual data entry, if any. We have automated and streamlined nearly every facet of employee time tracking.

Our Solutions Will Streamline Your Time Tracking Processes

At Hour Timesheet, our time tracking software will be a game-changer for your payroll department and employees. We offer an integrated system that ties everything together to keep valuable employee information at your fingertips. You won’t need to wonder about how to track workforce hours again.

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