A lot of employees ask “Is rounding payroll hours even legal?”, and the answer is yes. The Fair Labor Standards Act (FLSA) states that you must pay your employees for all hours worked. According to DOL, however, employers are allowed to round hours. Under the FLSA, you are allowed to round employee’s time in 15 minute increments or to the nearest quarter hour. When rounding time you just have to ensure that you are not violating FLSA regulations for minimum wage and overtime pay.
Author: Lindsay Sommers
The IRS allows you to choose any record keeping system for your business’ income and expenses. This means that you can keep records in a file cabinet or you can choose an electronic program. Either way, the choice is yours.
Depending on what business you are in, you may have to keep certain records for federal tax purposes. The IRS wants businesses to retain specific business documents including purchases, payroll, and other transactions. These records will support the entries in your books and on your tax return.
Many businesses have employees that get paid multiple pay rates during their shift. This happens when they perform more than one specific job function. For those employees, the hourly rate depends on the job they are working on at the time. Hourly rates by job can vary when employees work in the construction, plumbing, caretaking, landscaping, and many other industries. When you have an employee that works under different rates, you need to make sure that you are calculating their regular pay rate properly for overtime. Unless your employee is specifically exempted, employees working at more than one job rate covered by the FLSA must receive overtime pay at their regular rate and not at the specific rate for the job they are doing when overtime is incurred.
Timesheets.com has a handy calculator for simple regular rate calculations when there are two rates for two different jobs.
Calculating mileage reimbursement starts by knowing when you actually need to reimburse your employees. Although many employers think that they…
Let’s face it: there are a lot of regulations to follow when it comes to owning a business. Following all the applicable laws can be tough. Although it can be time consuming, you should make sure that you are always following the latest legal protocol. The best way to avoid these pitfalls is to hire an HR consultant to keep you on the right path. However, not every business can afford someone like that, so you should know where to go if you’re the self-help type of business owner. A good place to start is the Fair Labor Standards Act (FLSA) website. The FLSA establishes standards for minimum wages, overtime pay, record keeping, and child labor. So, what are some common pitfalls employers run into that lead to underpaying employees?
Time theft is common among employees in the workplace and comes in many forms, most of which can be difficult to catch. One of the most common types of time theft, called “buddy punching,” occurs when one worker punches the clock on behalf of a late or missing co-worker. Most managers agree that dealing with attendance problems is hard enough but can be even harder with dishonest employees. With 3 out of 4 companies experiencing time theft from buddy punching, the practice is a serious problem facing most businesses at one time or another leading to poor productivity and lost profits.