Time Tracking Archives - THE TIMESHEETS.COM JOURNAL

What is the 7-Minute Rule for Payroll, and is it Legal?

What is the 7-Minute Rule for Payroll, and is it Legal?

The 7-minute rule is a guideline created by the Fair Labor Standards Act for employers to round employee time correctly for payroll. Time-rounding is actually fairly popular. According to recent studies, about 55% of employers round employee timesheets up and down for payroll purposes. People have reported that it makes their process a little easier because they can see an overview estimation of employee hours. It also prevents early clock-ins and simplifies their invoicing practices. Despite these benefits, there are also some drawbacks.

Let’s dive into how the 7-minute rule works:

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How to Implement Online Time Tracking Software at Your Company, the Right Way

a person using a time tracking solution on their phone

How to Implement Online Time Tracking Software at Your Company, the Right Way

Published by Lindsay Sommers

Recent studies say that 38% of US employees still use paper timesheets. When using this method, timesheets are often submitted late, time padding and buddy punching errors increase, and miscalculations rise. The IRS reports that nearly ⅓ of employers spend $850 yearly on payroll mistakes. Therefore, in order to save costs associated with payroll, many employers are advised to use cloud-based/online time tracking software.

If you’re using paper timesheets or punch cards, it’s not difficult to make the switch to online time tracking! We’ll show you how easy it is to find a solution for your needs and how to successfully introduce this to your team.

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Time Tracking Tips That Keep You Compliant and Protected

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Time Tracking Tips That Keep You Compliant and Protected

Published by Lindsay Sommers

Time tracking is incredibly important when you have employees, contractors, or even if you simply want to track your own productivity. No matter how many people you employ, having a solid time tracking system ensures that your workers are paid properly and accurately. It also gives you insight into your productivity on projects and your progress towards accomplishing company goals. Tracking time accurately also means you can bill clients properly, which avoids embarrassing and costly mistakes. Improving transparency and accuracy is key to staying compliant with labor laws while protecting you against pesky fees from the Department of Labor.

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CA Locks Down Their Meal Break Requirements

CA Locks Down Their Meal Break Requirements

Published by Lindsay Sommers

California is known for its strict employment laws, and meal breaks are no exception. Recently, the meal break violations in Donohue v. AMN Services, LLC, have elucidated some issues surrounding CA timekeeping rules. This case specifically highlighted issues related to meal breaks and time rounding. Overall, it’s best to steer clear of time rounding practices when it comes to employee meal periods. If you’re a business owner or manager, you need to understand this case to know how to handle meal periods moving forward.

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6 Best Time Tracking Systems for Payroll & Billing

Published by Lindsay Sommers

Paper spiral wall calendar and clocks. Calendar and alarm clocks. Schedule, appointment, organizer, timesheet, time management, important date. Vector illustration in flat style

Time tracking is a vital aspect of any organization. Proper time tracking can give managers insight as to what projects occur, who’s on the clock, and how many hours an employee works through a payroll or billing cycle. Ultimately, time tracking is the lifeline of any functioning organization, and you want to make sure that you get it right. Take a look at the list below of our 6 top-rated time tracking systems so you can start improving your productivity, proficiency, and profits:

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Federal and State Meal Break Law Compliance

Women and men at a lunch table, enjoying their meal break

Federal and State Meal Break Law Compliance

Published by Lindsay Sommers

Breaks have always been a bit tricky for business owners to tackle. With so many rules in place, it’s hard to decipher what to do to stay compliant with federal and state law. As of May 2020, twenty-one states and two U.S. territories have meal break requirements in place. Generally, employees must take their breaks by a certain time within their workdays and the breaks are paid. Whether you’re curious as to what your state’s rules are, or if you’re thinking about implementing a break policy at your workplace, this article will help you understand federal and state meal break requirements.

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Is it Legal to Work Through Lunch In California?

Is it Legal to Work Through Lunch In California?

Published by Lindsay Sommers

California meal period laws can be confusing to many, especially when they are changing every year. Employees used to take meal breaks after 6 hours, but that has since changed to 5 hours after Labor Code Section 512 passed. In addition to Labor Code Section 512, California cities also have their own regulations. With multiple laws in place, it’s incredibly important that employers speak with their local labor boards. This will help ensure that employees are following meal break laws correctly. If employers don’t comply with laws, they may receive penalties and might have to pay employees back in the future.

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Is it Legal to Automatically Deduct Employee Lunch Time?

Published by Lindsay Sommers

Lunchtime can be a tricky thing to track. Some employees forget to clock out, adding minutes to their paychecks daily, while others forget to clock back into work once they return. This leads to inaccurate timestamps and, even worse, inaccurate payroll. You will end up either overpaying employees or underpaying employees, which can lead to issues down the line. In order to keep timestamps more accurate, some employers choose to implement automatic lunch deductions for hourly employees. This ensures that employees get lunch breaks deducted, no matter the circumstance. This is great for employers who want to avoid overpaying employees, but many people still have questions about the legality of lunch deductions.

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Your Guide to Employee Holiday Leave

Your Guide to Employee Holiday Leave

Published by Lindsay Sommers

We have written about time off and holiday leave a lot on this blog. With the 4th of July upon us, we thought it would be beneficial to create a holiday guide just for you. When holidays come around, employers may wonder how to handle various situations that may come up between their company and their employees. Are you following the law? Are you doing what other businesses are doing? Since the Fair Labor standards Act doesn’t require an employer to pay for any vacation or holidays, you may be left wondering not just what to do, but what you should do.

Employees and employers typically establish holiday benefits in an agreement. This is usually in the form of an employee handbook. This means that employers have flexibility to design a PTO policy that works best for the company, but it also leaves many questions unanswered. We hope you find the articles below helpful and informative.

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Why Rounding Payroll Hours is a Bad Idea

Published by Lindsay Sommers

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.

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IRS Receipts and Records That You Should Keep & How to Store Them

Published by 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.

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Buddy Punching: Problems With Employee Time Theft

Published by Lindsay Sommers

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.

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Category: Time Tracking