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Tag: payroll

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

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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Payroll Report: Overlapping Records and How to Fix Them

When closing payroll periods, accuracy is key!  Several recent studies have shown that inaccurate payroll can affect company branding, reputation, and retention. In fact, a study by Kronos stated that 24% of employees will seek new employment after the first payroll mistake and 25% will leave after the second mistake. Therefore, you’re going to want to ensure that you keep mistakes to a minimum if you want to keep employees happy and dedicated. Luckily, Timesheets.com has built-in warnings and hard stops to highlight possible errors, which allows you to correct errors prior to paying staff.

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Reasons Why You Have to Back Pay Employees

If an employee needs to receive back pay, this means that the employee wasn’t compensated correctly for their work. An employee may be owed back pay for bonuses, promotions, pay increases, or for hours they worked. Whatever the case may be, back pay is something that employers need to take seriously and handle in a timely manner. 

Here’s what you need to know:

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CA Locks Down Their Meal Break Requirements

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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Piece-Rate Pay: Should You Do it?

As a business owner, you have the choice to compensate your employees utilizing a number of different methods, as long as you meet federal and state law requirements. One option employers can give their workers is called “piece-rate” pay. Piece-rate compensation allows the employee to earn pay based on the units created rather than the hours they worked.  

If you’re thinking about paying your workers using a piece-rate system, here’s some things you should consider:

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Calculating Overtime for an Alternative Workweek Schedule in California

Overtime rules in the United States are generally simple. According to the Fair Labor Standards Act, non-exempt employees who work over 40 hours a week earn 1.5x their normal rate of pay for overtime hours. If employees earn multiple pay rates during their shifts (perhaps due to different positions they may have within a company), business owners must calculate their regular rate of pay for overtime and pay their workers accordingly. If you’re in a state like California, overtime becomes a little more complicated. Employees in California earn daily overtime and may even earn double time depending on how many hours they work. Not only that, but other overtime rules apply when employees are on an Alternative Workweek Schedule. 

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