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On the Evolution of Work Systems in the Digital Economy

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On the Clock: A Pocket Guide to Timesheet Rounding

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Back in the day when handling payroll was pretty much a pen-and-paper process, employers would use rounding to account for odd minutes and seconds outside the regular work schedule. Timesheet rounding helped streamline calculating wages and save chunks of time in the process.

But does it still make sense today?

What Is Timesheet Rounding?

Under the Fair Labor Standards Act (FLSA), all employers are required to track and store employee time records completely and accurately. This can be done either by asking employees to write their hours down, using regular time clocks or through time-tracking software.

“So, what does timesheet rounding mean?”

In a nutshell, timesheet rounding means that the actual work hours of your nonexempt employees are rounded up or down by set increments. Depending on the type of your business and general industry practices, you can round work hours in 5-minute and 15-minute increments or to 1/10th of an hour (more on that in a moment).

These days, thanks to GPS-enabled time tracking and payroll automation, fishing for small deviations from regular clock-ins and clock-outs has become much easier. And yet, some small-business owners still use rounding to calculate their employees’ wages.

Is Timesheet Rounding Legal? Read more of this post

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