What Are Timesheets?
Timesheets are physical or digital documents used to record the number of hours an employee worked during a specific pay period. They serve as the foundation for calculating pay for non-exempt employees and are essential for payroll accuracy and legal compliance.
For businesses with shift workers, deskless employees, and multiple locations, accurate timekeeping is a legal requirement under the Fair Labor Standards Act.
Why Timesheets Matter
Legal Compliance
The Fair Labor Standards Act requires employers to keep accurate records of hours worked by non-exempt employees. Failing to maintain proper timesheets can result in:
- Wage and hour violations
- Department of Labor penalties
- Employee lawsuits for unpaid wages
- Back pay obligations
Accurate Payroll Processing
Timesheets provide the data needed to calculate gross pay, overtime, and deductions correctly. Without accurate time records, businesses risk underpaying or overpaying employees, both of which create problems.
Project Management and Budgeting
For businesses tracking labor costs by project, location, or department, timesheets provide valuable data for:
- Analyzing labor efficiency
- Forecasting staffing needs
- Identifying scheduling patterns
- Managing operational budgets
Types of Timesheets
Paper Timesheets
Traditional paper timecards or sheets where employees manually record their hours. While simple, paper systems are prone to errors, lost documents, and time theft.
Spreadsheet Timesheets
Digital spreadsheets offer more organization than paper but still require manual data entry and lack real-time visibility.
Time Clock Systems
Physical time clocks where employees punch in and out. These reduce time theft but can create bottlenecks during shift changes and don't work well for mobile or field employees.
Mobile Time Tracking Apps
Modern solutions like Breakroom allow employees to clock in and out from their smartphones, providing real-time data to managers while maintaining accuracy and compliance.
What Information Should Timesheets Include?
According to the Department of Labor, timesheets must contain:
- Employee's full name and identification number
- Date of birth (if under 19 years old)
- Time and day when workweek begins
- Total hours worked each day
- Total hours worked each workweek
- Regular hourly pay rate
- Total overtime earnings for the workweek
- All additions to or deductions from wages
- Total wages paid each pay period
- Date of payment and pay period covered
Best Practices for Timesheet Management
Establish Clear Policies
Create written policies explaining:
- How and when employees should record time
- Meal break and rest period requirements
- Procedures for missed punches or corrections
- Consequences for timesheet fraud
Use Real-Time Tracking
Mobile time tracking eliminates the need to recreate hours from memory and provides managers with immediate visibility into who's working when.
Review Timesheets Promptly
Managers should review and approve timesheets before each payroll run to catch errors, unapproved overtime, or attendance issues.
Maintain Records Properly
The FLSA requires employers to keep payroll records for at least three years. Store timesheets securely and ensure they're easily retrievable for audits.
Train Employees
Ensure all employees understand:
- How to accurately record their time
- The importance of timely and honest reporting
- How to request corrections
- Company policies on breaks and overtime
Common Timesheet Challenges
Time Theft and Buddy Punching
When employees clock in for absent coworkers, it costs U.S. businesses billions annually. Mobile apps with GPS verification can help prevent this issue.
Forgotten Punches
Employees forget to clock in or out, requiring time-consuming corrections and approvals.
Calculation Errors
Manual calculation of hours, overtime, and breaks increases the risk of payroll errors and compliance violations.
Lack of Real-Time Visibility
Paper and spreadsheet systems don't give managers immediate insight into who's working, making it difficult to address scheduling gaps or unauthorized overtime.
Moving Beyond Traditional Timesheets
While paper timesheets and punch clocks served their purpose, today's workforce, especially deskless and mobile employees, requires more flexible, accurate solutions. Mobile time tracking integrated with employee communication and scheduling creates a seamless experience that benefits both employees and employers.
By implementing clear policies, choosing the right tools, and training employees properly, businesses can transform timesheets from an administrative burden into a strategic tool for workforce management.
