Clocking in and Out: Employee Timekeeping

Employee Timekeeping is Arguably One of the Most Important Aspects of Human Resources

Employee timekeeping is arguably one of the most critical aspects of human resources. It helps companies determine if they are paying their employees correctly, and it helps ensure that employees are working their hours accurately. This process can be complicated, especially when many different types of employees are involved. For example, some people are hourly while others receive a salary or commission; some work full-time while others work part-time; some may even receive overtime pay for extra hours.

Tracking all these different scenarios can be tricky for any company trying to stay on top of its payroll obligations and avoid violating labor laws—especially when it comes time for annual tax filings like W-2 forms or 1099s!

Companies Must be Able to Track Employee Hours Efficiently 

For a company to be successful, it must have an efficient way to track the hours its employees work. Timekeeping is a critical part of human resources that can help you identify areas of improvement in your business. For example, if your employees are clocking in at different times each day or skipping days altogether, this may indicate poor training or management issues within your organization.

In addition to helping identify areas of improvement within your organization, timekeeping also helps ensure that you are paying employees correctly: if an employee clocks out at 5:00 pm but doesn’t leave until 7 pm due to a long meeting with customers or another task beyond their everyday responsibilities (which is not uncommon), then they should be paid for the extra time spent at work—a practice called “overtime.”

Timekeeping is Critical Because it Affects Many Aspects of Your Business

Timekeeping is critical because it affects payroll, compliance, labor laws, and more. The wrong timecard can lead to severe issues.

For example, if an employee clocked in late but was working on an urgent project while waiting for their shift to begin (or vice versa), this could be considered unpaid overtime and overwork. These errors can also significantly impact payroll taxes like the FICA tax, which governs Social Security contributions and Medicare premiums.

In addition to compliance issues, there are legal implications with incorrect timekeeping records that employers are responsible for upholding. For example, if an employee claims that they were denied meal breaks or paid at their regular rate instead of overtime compensation when they were working beyond 40 hours per week. Proving these allegations will be difficult if your company does not have adequate records of how much time each worker spent doing specific tasks on any given day/week/month etc. 

The Fair Labor Standards Act (FLSA) 

The Fair Labor Standards Act (FLSA) states that employers must set forth a system to record employee work hours daily. The FLSA requires employers to keep records of hours worked and pay employees for all hours worked. Employers should be aware that they can be held liable if they fail to comply with these requirements under the FLSA, which may result in back wages being paid or fines being levied against them depending on the nature of their violations.

Overtime and Holiday Pay 

Timekeeping also helps companies determine if they are paying their employees correctly. This includes overtime and holiday pay. Employees who work more than 40 hours a week should be paid a higher rate, while those who work less than 40 hours per week should earn at least the minimum wage. Clocking in and out ensures that your employees are not being accidentally overworked, which could lead to severe issues like workplace injuries or even lawsuits against the company.

Identify Which Areas of the Company May Need Improvement

There are many ways for the company to track time. The most common method is a time clock, which employees use to clock in and out at the start and end of their shifts. A computerized system has its benefits over traditional time clocks: it can be used to keep track of hours worked by multiple employees, overtime pay, sick or vacation days, and other relevant information.

Additionally, the company needs to understand how much time its employees spend on various tasks. This can help management identify which areas of the company may need improvement. 

How Does an Inaccurate Timekeeping System Affect Your Business?

Inaccurate timekeeping is a problem for your business in many ways, and it can affect your bottom line and cause problems with employee morale, efficiency, productivity, and retention. Some employees may clock in at the beginning of their shift but take longer breaks than they should to get coffee or use the restroom. And then they have to clock out again when they’re done!

It’s also possible that some employees might be clocking in hours that don’t reflect what they are doing during those hours (like sitting at their desks eating lunch). This inaccuracy can cause you to pay people for work that was never performed—or worse yet, not pay them!

Wasted Time and Money

It is important to note that timekeeping is critical for payroll, compliance, and labor laws. Most importantly, however, it is also essential for business operations. Timekeeping can help you competitively differentiate your business by tracking the efficiency of your work processes and making improvements where needed. 

In addition, proper timekeeping will ensure that project costs are accurate, which helps reduce the risk of over-budgeting or under-budgeting in future projects. Lastly, precise timekeeping improves schedule quality by enabling managers to determine whether tasks are being completed on schedule or behind schedule so they can respond quickly as necessary. 

Risk of Lawsuits and Penalties

While it can be tempting to try and save money by underpaying your workers, it’s important to remember that you could face severe penalties for not keeping accurate records of employee time. If an employee files a wage claim against your company, you will have difficulty proving that they worked fewer than 40 hours per week if you don’t have verifiable records. 

In addition, if an employee is injured while at work or suffers from chronic health issues caused by long hours on the job, they may be able to sue you for violating their rights under federal law. As such, it’s best practice for employers to follow federal regulations regarding record-keeping so as not to get caught in any surprise lawsuits down the road!

If you’re ready to take the next step into a more efficient and effective timekeeping system, we’re here to help. At Vision HR, we offer a wide range of customizable solutions that can be customized to meet your business’s specific needs. Contact us today for more information about how we can help your Jacksonville business thrive!