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Documenting Hourly Employees’ TimeMonday 03/05/2012
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648

www.bookkeeping-results.com
Documenting Hourly Employees’ Time

All employers MUST keep accurate records of all hours worked, and there’s no such thing as someone legally “working off the clock” for whatever reason they so choose.  You can track the employee’s time sheet in a variety of methods, i.e. through an electronic payroll time tracking system, paper time sheets, a simple punch clock, but it has to be documented nonetheless.  Outside of keeping records for financial tracking purposes, you must also have these records available for the Texas Workforce Commission and/or The Department of Labor.

 

Regardless of your excuse for not having them, should you be audited, it comes in the form of what is termed the “best evidence” rule.  Specifically, in the area of time worked, whoever has the best evidence of work time will prevail on that point, whether it is the employer or the employee if they keep track of their own worked time.  Unless there is a reason to disbelieve the employee and his or her personal log, it is generally to be taken as the best evidence of the time worked, even if the employee may have been overly generous in crediting himself or herself with hours worked.

 

Other options in recording time worked, is designating one person as a timekeeper and manually entering the starting and stopping times on paper or in the computer.  Some companies employ other avenues such as ID cards or badges that are simply swiped, or using an automated voice-response system with a touch-tone telephone to record their times.  Irregardless of the method, this is an absolute must for any business that has hourly employees.

 

Please make yourself known that should you or anyone else makes revisions to time records you must have the documentation as to why they were altered, who altered them, and the reason for the alteration.  Employees can challenge these altered records unless you also have them make a notation that the altered time is true and correct.  Any outside auditors who choose to review these records, either through the Department of Labor or the Texas Workforce Commission, will question if there are numerous alterations to the records.

 

Each hourly person’s time should be initialed by that employee and the employee’s supervisor, to prevent any potential discrepancies should there be an investigation in the future.  When you get into a he said – she said type of issue when it comes to payroll and how much a person is paid for the time they worked, accurate documentation is what will prevail in most all cases.  Remember, there are always avenues for disgruntled ex-employees to seek out ways to make a stellar employer’s life less than idealistic.

 

 

About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC.   Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®.  Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale.  He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.

 

Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details.  Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.

 

Previously broadcast from:
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CNN 650 Radio News 11/08/2006 - 10/08/2009
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