The Ins and Outs of Leave Management: A Complete Guide

Happy employees are productive employees, and a key factor in employee happiness is a well-managed leave system. Effective leave management isn’t just about tracking time off. It’s about fostering a positive work environment, reducing burnout, and improving overall productivity. 

In this guide, we’ll talk about leave management, exploring its benefits, and best practices, and how Hour Timesheet can change the way you handle employee time off.

What Are the Different Types of Leave?

Paid Time Off (PTO)

PTO is the all-inclusive term for any paid time off work. Consider it a pool of hours employees can dip into for vacations, personal days, or even sick leave (depending on your company’s specific policy). Some companies offer a fixed PTO amount annually, while others let it build up gradually based on hours worked.

Sick Leave

Sick leave is specifically for when employees are unwell and can’t work. While some states or cities make paid sick leave mandatory, others leave this decision to employers. It helps employees recover without worrying about lost wages.

Vacation Time

Vacation time is the classic time off for rest and rejuvenation. Employees use it to travel, unwind with loved ones, or recharge their batteries. It often accumulates based on how long someone has been with the company and can sometimes carry over to the next year.

Personal Leave

Employees can use it for various personal needs, like doctor’s appointments, family emergencies, or relocating. It’s often used to manage life’s unexpected events.

Family and Medical Leave (FMLA)

FMLA is a federal law offering eligible employees up to 12 weeks of unpaid, job-protected leave annually for specific family or medical reasons. These reasons include the birth or adoption of a child, caring for a seriously ill family member, or dealing with a personal severe health condition.

Other Types of Leave

You’ll also come across other types of leave, such as bereavement leave for the loss of a loved one, jury duty leave, or military leave. The details of these types can differ based on company policies and local laws.

Leave Management Benefits for Your Business

Managing employee leave is a smart move that benefits your team and your company’s success. When done well, it’s a win-win for everyone involved.

Happier, More Productive Employees

Good leave management fosters a positive workplace. Employees feel valued and trusted when they can take time off without stress. This boosts morale and job satisfaction, leading to more engaged and productive employees.

Smoother Operations and Fewer Surprises

A well-run leave system helps your business run more smoothly. It reduces unexpected absences, which lets you plan projects and allocate resources more effectively. This means fewer last-minute scrambles, less disruption to your workflow, and more predictable results.

Stay on the Right Side of the Law

Effective leave management also keeps you compliant with often complex labor laws. A good system ensures everyone gets the leave they deserve, preventing potential issues and fostering a fair workplace. It’s a safety net that protects you and your employees.

Save Time and Money

Let’s not forget the financial benefits. Streamlining leave management saves time and money. By automating calculations and approvals, you free up your HR team from tedious paperwork, allowing them to focus on more strategic work. Plus, accurate leave tracking ensures correct payroll processing, saving you from costly overpayments.

Create Your Leave Management Strategy

Building a successful leave management system requires several components working together seamlessly. Here are some of them:

Clear and Transparent Leave Policies

First, you need a solid foundation of clear and transparent leave policies. These policies lay out the ground rules, explaining who’s eligible for which types of leave, how much time they accrue, any rules about carrying over unused leave, and how the approval process works. 

It’s your company’s leave rulebook, and communicating it clearly to everyone prevents confusion and ensures fairness.

Accurate Leave Tracking

Next, you need accurate leave tracking. This is where technology steps in. Ditch those messy spreadsheets and manual calculations. A reliable leave management system keeps track of leave balances in real-time, automatically calculates accruals and deductions, and generates detailed reports on leave usage. It’s like having a digital accountant who never misses a beat.

Efficient Request and Approval Process

Finally, an efficient leave request and approval process completes the picture. Say goodbye to paper forms and endless email threads. Modern leave management systems offer a user-friendly online portal where employees can easily request time off. 

Managers receive automatic notifications and can quickly approve or deny requests while keeping track of team schedules and workloads. It’s a streamlined workflow that benefits everyone.

Hour Timesheet Can Handle Your Leave Management

Tired of managing leave with outdated methods? Find out how Hour Timesheet can improve your leave management process.

Centralized Hub 

Hour Timesheet offers a single, easy-to-use platform where employees and managers can access and manage everything related to leave. No more digging through spreadsheets or chasing paper forms. Everyone has real-time access to leave balances and requests, making the whole process transparent and hassle-free.

Automation for Efficiency and Accuracy

Hour Timesheet automates the heavy lifting of leave management. It calculates leave accruals and deductions automatically, ensuring accuracy and saving your HR team valuable time. No more worries about miscalculations or outdated spreadsheets; the system handles it all.

Simple Requests and Approvals

With Hour Timesheet, employees can submit leave requests in a few clicks, whether they’re at their desks or on the go with the mobile app. Managers receive instant notifications and can approve or deny requests quickly, all while keeping track of team schedules and workloads. It’s a streamlined workflow that keeps everyone informed.

Seamless Integration with Existing Systems

Hour Timesheet integrates seamlessly with your existing payroll and HR systems, ensuring that leave data flows smoothly into payroll calculations. This eliminates manual data entry and reduces the risk of errors for payroll accuracy.

Customizable to Your Company’s Needs

You can customize leave policies to match your company’s specific requirements. Whether it’s setting accrual rates or defining eligibility criteria, Hour Timesheet adapts to your needs, ensuring compliance with all relevant labor laws.

Insights to Effective Decision-Making

Hour Timesheet provides valuable insights into leave usage patterns. This data helps you identify trends, optimize workforce planning, and make informed decisions about staffing levels and resource allocation.

Invest in Hour Timesheet for Your Workforce 

As you’ve seen, effective leave management is necessary for a thriving business. It motivates your employees, boosts productivity, and ensures compliance. 

If you’re ready to make your leave management easier and reap the rewards, we encourage you to explore Hour Timesheet’s comprehensive solution. Take advantage of our free trial and experience the difference firsthand.  

Time Tracking Software Tools: Boost Productivity & Profitability

In the rapidly evolving business landscape, efficient time management serves as the cornerstone of productivity and profitability. As enterprises strive to optimize operations and enhance workforce productivity, the adoption of time tracking software tools have surged. Among all the tools that are available in the market, Hour Time Sheet's time tracking software emerges as an all-in-one solution designed to cater to the dynamic needs of modern businesses. Our innovative software transcends traditional time tracking methodologies, offering an intuitive platform that not only simplifies the process but also infuses accuracy and reliability into time management practices. Through Hour Time Sheet's time tracking software, you can unlock the potential to streamline workflows, elevate efficiency, and foster a culture of accountability in your business.

The Evolution of Time Tracking Tools

The journey from manual timesheets to sophisticated time tracking software encapsulates a significant transformation within the business world. Initially, organizations relied on paper-based logs and basic spreadsheets to record working hours - a method fraught with inaccuracies and inefficiencies. As technology advanced, the inception of digital solutions paved the way for a more streamlined approach, introducing precision and ease to the timekeeping process.

Features of Hour Time Sheet's Time-Tracking Software

Hour Time Sheet time tracking software tool revolutionizes time tracking with its impactful features, designed to provide streamlined invoicing, insightful data for decision-making, and significant cost savings by identifying inefficiencies.

Streamlined Invoicing for Hourly Billing

For businesses that bill by the hour, efficiency in invoicing is paramount. Hour Time Sheet's time tracking software simplifies the billing process, enabling companies to easily convert hours worked into accurate invoices. This feature not only saves time but also ensures that all billable hours are accounted for, enhancing revenue.

Data for Decision-Making

In today's data-driven world, having access to precise information is key to strategic planning. Our time tracking software offers comprehensive data regarding resource allocation, project timelines, and employee performance. Managers can leverage this data to make informed decisions, optimizing both project outcomes and workforce productivity.

Cost Savings by Pinpointing Inefficiencies

One of the standout features of our time tracking software is its ability to identify areas of inefficiency within the business processes. By highlighting tasks or projects that consume excessive time or resources, the software enables businesses to reassess and reallocate as needed, ultimately leading to significant cost savings and a more efficient workflow.

Security and Compliance

In an era where data breaches are a frequent headline and regulatory compliance is non-negotiable, we have built our platform with security and compliance at its core. While being Defense Contract Audit Agency (DCAA) compliant, our time tracking software also employs state-of-the-art encryption and robust data protection practices. This ensures that sensitive employee and project information is securely stored and managed. Additionally, we stay abreast of the latest regulatory requirements, including labor laws and privacy regulations, providing peace of mind to businesses that their operations are not only efficient but also in full compliance with legal standards.

Innovative Time Entry and Leave Management

Our time tracking software streamlines time entry and leave management, making these processes significantly easier for both managers and employees. Through our mobile app, employees and contractors can instantly clock in, immediately updating their status across the platform for real-time visibility. This allows for immediate insight into who is working, their location, and their work duration, enhancing transparency and accountability within the workforce.

The app further simplifies leave management by enabling employees to submit leave requests with a single click, significantly reducing the administrative burden on HR and management. This feature not only provides employees with control over their time-off requests but also centralizes leave tracking for efficiency.

Other Premium Features

Hour Time Sheet's time tracking software also excels in job tracking and costing, ensuring precise project monitoring and budget control. The software seamlessly integrates with payroll systems, streamlining the process from time tracking to payroll. Managing employee leave is simplified with the leave tracking functionality, while the distinction between billable and non-billable hours enhances financial reporting. The diverse clocking options cater to various work environments, and the support for third-party approvals accommodates specific requirements. This robust set of tools empowers businesses to effectively manage time, resources, and finances.

With these incredible set of features, our time tracking software becomes not only a tool for tracking time, but an integral resource for enhancing business operations, improving financial performance, and fostering a culture of efficiency and accountability.

Why Do You Need a Time Tracking Software?

Time tracking software is essential for modern businesses due to its ability to increase productivity by identifying inefficiencies and motivating employees to optimize their work. It streamlines payroll processing, ensuring accurate and timely payments, while providing valuable insights for improved project management. By optimizing billing practices and ensuring compliance, it increases profitability and transparency. Furthermore, it supports flexible and remote work arrangements, making it a crucial tool for adapting to the changing landscape of work.

Partner With Us

Partnering with Hour Time Sheet for your time tracking needs is a strategic decision that prioritizes your business growth. Our flexible, no-contract pricing adapts to your evolving requirements, while complimentary support and training ensure you maximize the software's potential. With a risk-free approach, you can confidently explore the benefits of our intuitive and comprehensive features designed for modern businesses. 

By choosing Hour Time Sheet, you gain more than just software; you gain a dedicated partner committed to improving your operational efficiency and driving your success. View our pricing list or try out our product for free today. 

For more information, contact us at 1.832.779.5658.

Leave Management Software: The Key to Happy Employees

When you’ve got leave management software in place that makes it easy for your team to request time off and for you to keep track of who’s out and when everything runs a whole lot smoother. No more confusion about how much vacation time they have left or whether their sick day got approved. 

With leave management software such as Hour Timesheet, it’s all right there at your employees’ fingertips. And happy employees? That’s the secret to a successful business.

What Is Leave Management Software?

Leave management software, also known as absence management software or time-off tracking software, is a tool or system used by organizations to efficiently manage and track employee leaves and time off. 

It automates the process of requesting, approving, and tracking various types of leaves, such as vacation, sick leave, personal leave, maternity/paternity leave, and other types of time off.

Leave management software typically involves a centralized platform that allows employees to submit leave requests electronically. The software then automates the workflow by sending notifications to supervisors or managers for approval or denial. 

Once approved, the system updates leave balances and generates accurate records of employee absences.

How Leave Management Software Works

Leave management software automates the process of requesting, approving, and tracking various types of employee leaves or time off. Leave management software usually works following this:

Employee Request Submission

Employees submit leave requests describing the type of leave, duration, and any other relevant details. The software may allow employees to submit these requests online, via a mobile application, or as a part of a human resources information system.

Approval Workflow

After the employee submits the request, the software sends notifications to the designated supervisor or manager to review the request and approve or deny it. The approval process can be based on predefined rules and policies.

Leave Balances Management

Once the request is approved, the software updates the employee’s leave balances, which can be easily tracked by the employee and the manager. The software ensures that the employee does not exceed their leave quota or exceed the maximum number of leave days of a particular type.

Real-time Availability and Analytics

Managers can quickly access employee data and view leave schedules in real time. This reduces the risk of conflicts or scheduling issues.

Leave management software also provides productivity data, including patterns or trends in employee leave, frequently taken types of leave, and reasons for absences. The data helps management analyze results in productivity and attendance performance.

Key Features and Benefits of Leave Management Software

Leave management software can transform a business. The key features and benefits of leave management software may include:

Centralized Leave Requests

Employees can submit leave requests online, eliminating the need for manual paper forms or email requests. This improves the efficiency and accuracy of the process.

Approval Workflows

Supervisors or managers receive automated notifications and can review and approve or deny leave requests based on predefined rules and policies. This streamlines the approval process and ensures proper control and compliance.

Leave Balances

The software maintains a record of employees’ leave balances, allowing employees and managers to track available leave days or hours. This helps prevent scheduling conflicts and ensures leave is granted within policy limits.

Accurate Leave Accruals

Leave management software can calculate and update leave accruals based on company policies, employment tenure, and other relevant factors. This automates the process and reduces manual errors.

Calendar Integration

Integration with calendars allows employees, managers, and HR personnel to view and track leave schedules without switching between multiple systems.

Compliance with Labor Laws

The software helps companies comply with labor laws and regulations regarding leave entitlements, carryovers, and other requirements.

Analytics and Reporting

Leave management software often provides reporting and analytics capabilities, allowing HR and management to gain insights into employee leave patterns, trends, and costs.

How Leave Management Software Improves the Employee Experience

Leave management software doesn’t just benefit the HR team. It can also have a big impact on the employee experience. Leave management software can significantly improve the employee experience in various ways:

Self-Service Convenience

Employees can easily submit leave requests, check their leave balances, and track the status of their requests without having to rely on manual processes or paperwork. This self-service functionality empowers employees and gives them more control over their time-off management.

Transparency and Clarity

The software provides clear guidelines on leave policies and entitlements, ensuring that employees understand the rules and regulations governing leave management. This transparency helps minimize confusion and disputes regarding leave requests.

Streamlined Process

When the leave requests, approvals, and tracking are all automated, the software streamlines the entire leave management process. This eliminates delays in processing requests, reduces administrative tasks, and ensures timely responses to employees’ time-off needs.

Improved Communication

Leave management software facilitates seamless communication between employees and managers regarding leave requests. Notifications and reminders keep all parties informed about the status of leave requests, approvals, and any changes in schedules.

Flexibility and Accessibility

Employees can conveniently access the leave management system from anywhere, whether in the office or remotely. This flexibility allows employees to manage their leave requests more efficiently, leading to increased satisfaction and productivity.

Reduced Errors and Compliance

Leave management software minimizes errors in calculating leave balances, accruals, and entitlements. Because these processes are automated, the software ensures compliance with company policies and labor regulations. This reduces the risk of discrepancies and legal issues.

Empowerment and Trust

Providing employees with easy access to leave information and the ability to manage their time-off requests fosters a sense of trust and empowerment. Employees feel more valued and respected when they have control over their leave management.

Real-time Visibility

Employees can view their leave balances and schedules in real-time, enabling them to make informed decisions about their time off. This visibility helps employees plan their leaves effectively and align them with business needs.

Get Leave Management Software for Your Business

Effective leave management ensures employee satisfaction and maintains a productive work environment. Hour Timesheet streamlines your team’s leave tracking processes, enhances transparency, and improves overall employee experience. 

With features like self-service convenience, real-time visibility, and automated workflows, Hour Timesheet empowers employees and enables managers to easily manage and approve leave requests. 

The software also integrates seamlessly with popular accounting software packages like QuickBooks, providing a comprehensive solution for time and leave tracking. Take the next step towards efficient leave management. Start your free trial today!

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.

Schedule your demo now

Simple Software for Tracking Employees Vacation & Sick

How to Keep Track of Your Employees Vacation and Sick Days

Leave management is often a complicated aspect of any manager’s job. If you or members of the team are having difficulties with tracking employees Vacation & Sick days, don’t worry, there are plenty of ways to improve the process. Below is a brief look into how to keep track of vacation and sick days more effectively and modernize your time keeping procedures.

Why Implementing an Effective System Is so Important

When handled strategically, leave time tracking can be beneficial for both the organization and its employees. For the company, it could work to reduce or even eliminate sick leave abuse as well as make activities easier for payroll and human resource professionals, such as wage calculations in consideration of sick leave entitlements. It can also keep managers up to date on the entitlements for each employee with information surrounding regularization, time taken and overall performance.

For employees, it works to facilitate the request process, ensure they are following the correct procedures and improve leave time tracking accuracy across the board. Plus, when employees feel their needs are being considered, it may inspire them to be more motivated and engaged at work. All these benefits and more provide a healthier work-life balance which, in turn, could lead to increased productivity across teams and an improved bottom line.

Utilizing the Right Tools for the Job

In the past, time-consuming spreadsheets and unreliable procedures could result in scheduling mistakes, abuse and dissatisfied employees. Now, however, there are modern, automated methods for employee vacation & sick tracking. These sophisticated systems optimize the complex processes and make it simple to track, manage and document employee leave time in a detailed manner. What’s more, they can be customized to better align with an organization’s variables and specific procedures. How do these leading-edge solutions work? Employees use the leave management software to view their sick leave, vacation time and comp time balances as well as to request time off.

Then, managers can either approve or deny leave times after verifying leave balances, carry-over values and company policies all in one central location. They also save time, effort and resources by eliminating manual calculations of leave balances and paper-based requests.

With just a few clicks, these advanced systems and the range of features they offer can provide an organization with more comprehensive insight into all their scheduling affairs. Having this answer to the important issues in managing employee leave in place can streamline the task for everyone involved.

Tracking Employees Vacation & Sick With Hour Timesheet

Here at Hour Timesheet, our leave management software systems are easy-to-use yet robust enough to assist any size of organization with its employees’ attendance monitoring needs. We also offer a time and leave tracking package that can easily integrate with other accounting software to make upgrading a breeze.

You can rely on our team of experts, excellent customer support and valuable training to sort out any and all leave management challenges you’re facing. For more information on what we have to offer or if you have any questions, please feel free to contact us today!

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.

DCAA Compliance Explained

DCAA Compliance Explained

The term ‘DCAA compliance’ when referring to your timekeeping procedures is often just thrown around. If you don’t understand what that means or how to verify that you are DCAA compliant, Hour Timesheet can help.

Simply put, DCAA stands for Defense Contract Audit Agency. This is the federal government agency responsible for conducting DCAA audits of the Department of Defense (DoD) contracts. As imagined, the DoD is very strict about its rules and regulations surrounding DCAA compliance and timekeeping. The DoD will award government contracts to businesses that use web-based timekeeping if they meet all requirements.

1. The company must document all timekeeping procedures in a policy or procedure handbook.

The employee handbook must address all critical elements of an adequate timekeeping system. Companies must provide all employees with an up-to-date policy or procedure handbook regarding time entry procedures.

2. Every employee must record all of his/her time daily.

Attempting to track time worked in advance or days after the fact is not acceptable. Hour Timesheet comes equipped with reminders and alerts to ensure employee time is entered daily. This means that no matter the size of the company, Hour Timesheet is equipped for every employee to track time. This DCAA timekeeping feature is especially useful for any companies participating in SBIR and STTR programs. They may be smaller businesses, but they must ensure they remain DCAA compliant to qualify for their funding.

3. All employees must record 100% of the time worked.

Whether working on a government contract or commercial work, all time worked must be accounted for. With the Hour Timesheet mobile app  the employees and 1099’s can add time from anywhere, whether they’re working from home or the office.

4. Employees must record all indirect time not identifiable to a given project to proper indirect cost accounts (Overhead, G&A, B&P, R&D, etc.)

One example of an indirect cost is overhead. This usually includes the indirect costs involved in support operations or direct production. These costs are directly related to a project or projects. However, they cannot be allocated to one specific contract. This is because they overlap across many different projects.

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

Hour Timesheet allows for leave tracking any kind 

6. The system administrator(s) should initiate all job codes that appear in the timekeeping system.

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

7. All timesheet entries must be recorded by the employee.

An employee must record their time based on work completed. They should track all time entries, irrespective of whether the time is billable or non-billable. This must happen daily.

8. Employees must charge to the appropriate project

Whenever the employee completes work or tasks, they must charge it accurately and directly to that project. Hour Timesheet can be setup to restrict which codes an employee can charge their time; therefore, an employee cannot charge to a project they have not been assigned.

9. Employees may not work on indirect tasks and record time as direct costs

An indirect task is work that is not explicitly tied to a project. To remain DCAA, compliant employees must never charge the time it takes to complete these tasks to any project. This would violate DCAA compliance and regulations

10. The employee is required to initiate all correction timesheet entries.

The employee must record all corrected timesheet data that includes a detailed audit trail. An audit trail is critical to remaining DCAA compliant.

The employee’s supervisor must approve every correction time entry in a detailed report, in the event of a DCAA audit.

In the unusual circumstances where the employee cannot make the changes to timesheets, then the HTS administrator may make such changes with the employee’s consent. The DCAA may analyze each entry on an employee’s timesheet. Thanks to your detailed audit trail, the DCAA will see who edited a time card after it was submitted. They will also be able to see when the changes were made, and why. Hour Timesheet creates an un-editable audit log that proper documentation. This activity log will include all of all the additions, deletions, approvals, and modifications made to your employees’ timesheets.

11. The employee’s supervisor must approve all employee timesheet data.

Each timesheet requires two signatures, in order to comply with DCAA compliance regulations. Hour Timesheet allows for online signatures at both the employee and manager levels.

12. All employees should be provided documented timekeeping training.

The company’s employee handbook or new-hire orientation program typically includes this training. Either way the employee should become familiar with the company’s timekeeping policy before they begin working.

13. In order to be DCAA compliant, the company must retain timesheet data for at least two years.

That means the company must be keep their files in a secure and easily accessible location. Should the DCAA require you to produce copies of your timesheets, they should be available. Hour Timesheet keeps the timesheets indefinitely for all employees, current, and past.

14. The company must conduct audit or floor checks randomly throughout the year to monitor employee timekeeping compliance.

Unfortunately, DCAA timekeeping compliance is one of the primary reasons government contractors fail an audit. Hour Timesheet can help. We have the employee and contractor time tracking experience to ensure total compliance. Sign up for Hour Timesheet today and work with an experienced implementation rep to review your account for total compliance. All for FREE.

DCAA Compliance With QB Software

Features To Look For In DCAA Compliant Time Tracking Software

Government contractors that are hoping to get awarded projects from the government have to comply with the regulations set in place by the DCAA. The Defense Contract Audit Agency outlines exactly how businesses should be tracking their time and documenting accounting when working on a government project. The DCAA will audit companies, and ensure they are following these guidelines. The DCAA compliant timekeeping procedures can be tricky to navigate, which is why Hour Timesheet has compiled a DCAA compliance checklist. This makes it easy to prepare for an audit, and make sure your company is in line with DCAA regulations.

DCAA Compliance and Time Tracking

Let’s say you’re looking for a long-term solution to DCAA compliance. Time tracking is a big part of many businesses, and adding in DCAA compliance makes the process lengthy and tiresome. Luckily, companies like Hour Timesheet exist to make it easy for businesses. You don’t have to worry if your time tracking meets DCAA requirements, because we’ve already done it for you. Even if you’re already using QuickBooks, and you’re just looking for some extra help - Hour Timesheet can integrate directly with QuickBooks.

What type of firm needs time tracking software? Most employers who hire hourly employees need to know the number of hours each employee has worked so that payroll can be calculated properly. Government contractors have a different set of rules and are required to track time, both hours for exempt and non-exempt employees. They also have certain rules in place involving tracking indirect costs, such as labor costs. Even organizations that only hire salaried employees have a need to track projects or tasks for successful project management. That's why finding the right time and attendance software is critical to your bottom line.

What to Look for When Evaluating a DCAA Compliant Timekeeping Software? When researching tools, it's important to make sure the software that you are evaluating meets certain criteria. Whether you're an organization with salaried employees, or government contractors hoping to win a government contract, it's important to partner with companies you can trust. Here are some things to look for when searching for a timekeeping system:

Reminders to Track Time Daily

It's common for employees and contractors to forget to track time, which can cause a lot of issues for DCAA audit trails. Hour Timesheet offers daily reminders to track time and ensure it's getting done accurately.

Online Approvals

Whether it's approvals for time log edits or approvals for charge codes, it's important to have a timekeeping system that allows approvals online.

Mobile Access (iOS and Google Play)

Managers can access Hour Timesheet from any computer, or through the mobile app, and submit approvals online.

Detailed Audit Log and Audit Trail

Whenever the DCAA performs an audit on your company, they're going to want to see records of everything. The best practice when hoping to win future contracts is to keep detailed records and trails of all time, labor, and cost history. This will make it easier for you and the DCAA when the time comes for an audit.

Real-Time Location Tracking

Government contractors often perform work offsite and on the location of clients or at work sites. This can make time tracking difficult when managers are unsure where workers actually are. Hour Timesheet offers real-time, accurate location tracking so that your records can be as accurate as possible.

Integration with Accounting Software (QuickBooks Online & QuickBooks Desktop)

This is arguably one of the most important features in time tracking software. The DCAA not only wants to audit the company's timekeeping requirements, but they also want to do an accounting system audit and ensure those records are accurate. By connecting your timekeeping software to your accounting system, such as QuickBooks, you're making this process seamless. The DCAA will look at things like labor distribution, cost objectives, indirect costs and direct costs, and uncompensated overtime. Everything needs to be tracked to ensure proper DCAA compliance with QuickBooks.

Knowledge of Government Contracting

At Hour Timesheet, we believe the most important thing to look for in a timekeeping system is a demonstrated knowledge about the DCAA system. Without this knowledge, the software may not be able to provide what it promises. It's important to work with a company that has an in-depth understanding of how the federal government awards contracts, audits companies and enforces DCAA regulations.

Work Smarter, Not Harder

Some other features that can be very beneficial in a timekeeping system include an online web clock, correction timesheet workflows, and online job tracking. These make it easier for everyone involved to do their job.

Are you wasting time and money on the following?

Correcting math errors on hours worked and other time entry activities

Tracking down late or missing weekly timesheets

Manually entering employee time worked into your accounting and/or payroll file

If you answered yes to any of the questions above, it's time to let today's technology work for you. Intuit and QuickBooks have a marketplace where 3rd party vendors who offer time tracking are listed. Only companies that pass strict guidelines and follow Intuit's partner policies are listed on these sites.

View QuickBooks Online Marketplace Apps here

View QuickBooks Desktop Marketplace Apps here

Hour Timesheet was created for you; with your origination in mind. We have created a simplified solution that captures your complex situations and makes DCAA compliance easy. Give us a try FREE for 30 days. No credit card is required. Our experts with over 20 years of industry experience are waiting to hear from you now. Hour Timesheet includes a QuickBooks timesheet import sync that makes your payroll process a snap!

Hour Timesheet can be a perfect tool that will integrate & sync with your QuickBooks Desktop Hosting keeping an eye on your reminders, daily tasks, etc. Learn more about add-ons like Office 365 E3 suite for improving your team collaboration.

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tracking indirect time in timesheet with indirect cost pools- man's hand in suit sleeve with stopwatch

Indirect Cost Pools

You Can’t Manage What You Can’t Measure

A key aspect of complying with government regulations is creating processes and utilizing software tools that allow your organization to be compliant. Because we all know you can’t manage what you can’t measure, it is important to understand the basic categories of your organization’s indirect cost pools and to establish a mechanism to efficiently track employee time against these pools.

Direct costs are traceable to the production of a specific good or service. Labor and direct materials, which are used in creating a specific product or service, constitute most direct costs.

Indirect costs are those cost necessary to keep your business in operation. Indirect labor costs make the production of cost objects possible but aren’t assigned to a specific product.

Indirect Cost Pools

Overhead – indirect costs incurred that are not direct costs, but that can be attributed to a specific revenue-generating project or job.   Any indirect labor or expenses that can be attributed to a certain project can then be distributed across those projects based on the projects’ direct labor hours, direct labor costs, or direct material costs

Fringe costs – include employee related costs including payroll taxes, fringe benefits such as health insurance and compensated absences (vacation, holiday and sick time).

General and Administrative (G&A) Expenses. These are management, financial, and other expenses related to the general management and administration of the business. To be considered a G&A Expense, the expenditure must be incurred by, or allocated to, the general business unit. Examples of G&A Expense include:

Salary and other costs of the executive staff of the corporate or home office.

Salary and other costs of such staff services as legal, accounting, public relations, and financial offices

Selling and marketing expenses


Two major types of indirect costs are accounted for in a very unique way in the government contracting environment.

IR&D consists of contractor research and development efforts not performed under contract or grant and not required for the preparation of a specific bid or proposal, either government or commercial. IR&D is funded and managed at the contractor’s discretion from contractor-controlled resources.

B&P is comprised of contractor efforts to prepare, submit, and support bids and proposals, either government or commercial, whether or not the bid is successful.

Contract Type Matters

To recognize the impact that changes in indirect cost rates have on both the contractor and the government, it is vital to understand the various types of contracts used in government work. In some cases, increases in indirect costs are totally or partially paid by the customer.

A cost-reimbursement contract is used when the cost of contract performance cannot be predicted with accuracy, such as in the development of weapons systems.

Cost-plus-fixed-fee (CPFF) contract, the contractor is reimbursed for his actual cost, subject to certain government requirements regarding allowability, plus a negotiated fixed fee.

A cost-plus-incentive-fee contract (CPIF) is a cost-reimbursement contract that provides for a fee that is adjusted by a formula according to the relationship of total allowable costs to target costs. The target cost, target fee, minimum and maximum fee, and the fee-adjustment formula are negotiated at the outset. The fee paid to the contractor is negotiated after contract performance and final actual costs are determined, using the formula and the minimum and maximum fees.

Additional Resources