Do I need hours tracking for salaried employees?
Most businesses today are made up of many different types of employees; part-time, temporary, full-time, hourly, and salaried employees. Obviously, accurate time keeping is required for hourly employees, but what about salaried employees? Many business owners aren’t sure whether or not it is necessary to keep track of a salaried employee’s hours since that will not affect the amount they are paid. Good business practice dictates that hours tracking should be required for all employees including salaried employees in order to manage the work force, control labor costs, comply with current labor laws, and track accruals.
Managing your work force
Technology has allowed businesses to employ workers at remote locations. This has made managing today’s workforce more challenging. Managers and supervisors may not even be in the same building, but need to ensure that tasks are completed and employees are working. Having a timetracking software allows supervisors to glance at a computer screen on their desk and see who is currently working, on vacation, taking a break, or has left for the day. The days of having a “who is here board” are over. Not only are they bulky and inconvenient, but they are additional cost that is often not up to date with current information. Software, on the other hand, installs on computers you already own and tracks information in real time.
Controlling labor costs
Employees’ productivity is every company’s most valuable asset. Hourly employee time is tracked to be sure they are paid for their efforts, but also to ensure they are where they are supposed to be and adhering to the breaks and lunches they are allotted. Salaried employees should be no different. They also show up for work and go to lunch, but if their hours are not tracked, a business owner has no way of knowing how long they spend at lunch or on a break. If employees work remotely, supervisors may have no idea when the employee is coming or going. We want to think all our employees are honest and hard working and in reality most employees are. Requiring employees to clock in and out helps direct the management of your most valuable asset and makes employees accountable and responsible for the time they are at work.
Labor law compliance
Each state has its own set of laws and regulation regarding worker hours. In many states, salaried employees are allowed to receive overtime if they work more than the mandated work week or their contracted number of hours. In any labor dispute, a business owner will need accurate time records to show that an employee was properly paid. When termination of an employee is required, time and attendance reports allow management to show noncompliance with established company policies and cause for termination.
The Affordable Care Act is setting in motion a long list of regulations that businesses need to comply with. Simply declaring someone as a part-time or full-time employee is not enough. Businesses will need to establish whether or not an employee meets the criteria to be considered part-time or full-time, and thus determine their eligibility for employer provided health care. One of these criteria is the average number of hours worked on a weekly basis. Exceeding this threshold defines an employee as full-time and eligible for employer provided health benefits. Businesses which fail to comply with these regulations, knowingly or unknowingly, are subject to harsh penalties. Salaried employees are not exempt from these regulations, necessitating that their hours are tracked to protect the business. For each employee, businesses will need to show the total hours worked by week, to calculate the averages. Having an automated program saves employers hours of tedious, time consuming manual calculations.
In general, salaried employees receive some type of accrued vacation, PTO, or sick time. It is imperative that an accurate total of hours earned and used be kept, to ensure that the correct amount of accrued time is allotted to each employee. An automated program provides an easy and efficient way to record these hours. Most programs provide a way to accrue time on an hourly, yearly, or pay period basis; granting management and the employee quick access to a real time total for accrued hours earned and used.
Tracking employee time is not an enjoyable task, but in today’s world it is required to manage your growing work force, control labor costs, and comply with government mandated regulations and legislation. TimeClick is an affordable software solution which will allow you to track all your employee hours, produce streamlined reports, and make payroll compliance simple. Thousands of businesses all over the world have trusted TimeClick to track their employee’s hours. See the difference TimeClick can make in your business.
“This product is good for companies that are well spread out and don’t communicate directly with every department. The office is able to see if warehouse members are here, and warehouse members are able to see if sales members are here. I like that it doesn’t need the internet to work. It all goes off an administrator computer. The administrator can access the administrator mode off any computer. If an employee is late to work or tries to leave early, everyone can view TimeClick to see the in/out times.”
– Shayna, DS Electric Supply