Employee Basics

How Should I Track My Employees’ Hours?

It’s important to make sure you know exactly when your hourly employees are working and to track employee hours accurately. That’s not just to keep everything staffed and running smoothly at your business but also to make sure your payroll is correct.

There are many ways to track your employees’ hours. Some smaller businesses simply have their employees record their hours manually every day at work. Then, they tally them all up at the end of the pay period, calculate any applicable overtime, and process their payroll.

Some larger business use time tracking software to keep everything straight. Time tracking software provides an online portal for your employees to clock in and clock out during their work day. Depending on the software, the totals can then flow through to your payroll and allow you to process everything automatically with ease.

Depending where you’re located, state rules may also have recordkeeping requirements that may require you to keep records of your employees’ hours. It’s always a good idea to confirm the employer requirements in your state to make sure you are staying compliant.

This article provides general information and shouldn’t be construed as tax, benefits, legal, or HR advice. Rules and regulations may change over time and may vary by location. So, please consult an appropriately certified expert (such as a lawyer, CPA, tax advisor, licensed broker, or HR expert) for advice specific to your circumstances.