How to Keep Track of Employee Hours

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Tracking employee hours keeps your payroll accurate and your employees happy

Technology today makes keeping a record of work times much easier. It is a requirement for all businesses to keep tabs of all records regarding any business related activity for legal purposes. Documenting the wage earners’, contractors’, or freelancers’ time play a tremendous role in making sure the business is running efficiently.

How to Keep Track of Employee Hours

  1. Decide What Tracking System Works for Your Business
  2. Depending on the whether the company is a small business, corporation, or large business affect the type of method used due to the company size. In doctors’ offices, there are usually less than five individuals working for that specific doctor. Due to the small company size, doctor offices keep track of work time the old-fashioned way – paper and pen. Pen and paper allow the doctor to save money. Excel Microsoft is another easy way to document staff hours. Software and employee timekeeping practices are correlated to one another since these tracking devices cannot operate without somewhere to store the amount of time worked by the staff. The workers’ information stored in a software is always connected to a computer. Software is useless without a computer utilizing it.

    As for corporations, paper and pen would be impossible to keep up with due to having over one thousand company representatives working in different places. So that is where technology comes in. There are two major practices. The most common practice is the employee badge swipe where the individual simply uses the barcode on the assigned card to punch in. Aramark Corporation adopted the timekeeping system using fingerprints to clock in a few years ago. Another way to keep the record of your staff members’ hours is the Automatic Time Clock System. The Automatic Time Clock System allows staff to clock in by logging into an internet portal on a computer. The time clock system also generates payroll reports. Sometimes, the time clock system gives workers the option to view available schedules and pick up shifts. The electronic timekeeping system allows managers and supervisors to manage their employees more efficiently.

    There are several software systems available in the world that is used for workers’ time record purposes. There is the TimeClock Plus in different levels depending on company size. The best software for small businesses are Zenefits, Patriot Software, and TimeClick. Larger companies benefit from using Kronos Workforce Central, APS Online, and Optimum Solutions. Software has a different cost range depending on several company factors such as company budget and size.

  3. Set a Payroll Schedule
  4. Decide on a pay schedule of what recurring day your workers will be paid. Each individual may get paid weekly, biweekly, or monthly. Sometimes you may want to pay your workers on a salary instead of hourly.

  5. Adhere to State and Federal Laws for Payroll Requirements
  6. In every business, whoever oversees their workers in a department or unit are responsible for paying state and federal taxes from the worker’s paychecks. Make sure you know the federal and state laws regarding minimum wage. According to the United States Department of Labor, the federal minimum wage is $7.25 but state minimum wages are different amounts. Maine’s hourly minimum wage is at $7.50.

    Tax forms are very important. It is mandatory that workers fill out a W-4 form. Contractors and freelancers are required to fill out the W-9 form. The 941 Federal Form or similar form according to your state must be filed and sent out every quarter. Worker or contractor tax forms need to be sent out to the Social Security Administration at the end of the year in order for SSA to send the tax forms to the wage earners in the company so that they may file their taxes. There are payroll services companies that take care of the tax filings on your behalf.


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