A timesheet is a formal record that tracks how many hours an employee or independent contractor works over a given timeframe. Employers use timesheets for purposes like tracking project labor, managing client billing, and processing payroll accurately.
A Brief History and Evolution of Timesheets
The concept of recording work hours dates back to the 1880s, when mechanical time clocks were first introduced. Employees would insert a time card into the device, which would stamp the start or end time, giving rise to the familiar phrases “punching in” and “punching out.” These early systems eventually evolved into paper-based timesheets and, more recently, into digital solutions.
Modern timesheets are now mostly digital, offering greater accuracy and convenience. They not only help businesses remain compliant with wage laws but also improve internal operations such as project tracking, client invoicing, and employee performance monitoring.
How Timesheets Work Today
Today’s timesheets can be completed manually on paper or electronically using tools like Excel, Google Sheets, or dedicated time-tracking software. In most companies, employees fill them out directly, though some organizations have supervisors complete or verify them.
Time tracking can be customized based on business needs, whether on a daily, weekly, biweekly, or monthly basis. With the help of modern platforms, companies gain a real-time overview of project progress, resource allocation, and labor costs.
This system is especially helpful in environments where employees are assigned to multiple projects. It allows for better task distribution, timeline management, and insight into team productivity. Timesheet tools often include built-in analytics that support workflow optimization and cost control.
Ways Employers Can Use Timesheets
Timesheets provide three essential functions:
- Payroll Administration: They serve as a record of hours worked during a pay cycle, allowing employers to calculate accurate wages.
- Project-Based Costing: For businesses that need to evaluate profitability per client or task, timesheets track labor distribution across projects and help calculate job costs.
- Client Billing: In industries like law, consulting, and accounting, timesheets offer the necessary data to generate invoices based on billable hours.
Why Timesheets Are Beneficial
Employers and employees alike benefit from using a structured time-tracking process:
For Employers:
- Workforce Monitoring: Timesheets help track employee start/stop times and break patterns, offering insights into schedule efficiency.
- Billing Accuracy: For client-based businesses, detailed hour tracking supports precise invoicing and transparent client reports.
- Performance Visibility: Timesheets can highlight inefficiencies, enabling managers to spot issues with time usage or project delays and take corrective action.
- Simplified Payroll: Payroll becomes easier when every worked hour is already documented in one place, reducing errors and administrative overhead.
For Employees:
- Transparent Pay: With logged hours clearly recorded, employees can feel more confident that their paychecks reflect the time they’ve worked.
- Accountability: Staff can review their timesheets to verify earnings and confirm they’ve been compensated correctly.
- Legal Protection: A timesheet acts as a legal document that helps ensure compliance with labor laws and supports claims for overtime, benefits, or other entitlements.
Why Compliance Matters in Time Tracking
The Fair Labor Standards Act (FLSA) mandates rules around minimum wage, overtime, and employee recordkeeping. For non-exempt workers, timesheets are a vital part of FLSA compliance. Employers must track and pay for any time worked over 40 hours per week at the applicable overtime rate.
Companies working under federal contracts may also need to comply with Defense Contract Audit Agency (DCAA) guidelines, which require validated timesheets, documented changes, and detailed labor reports.
To meet these standards, many businesses adopt timesheet attestation, a practice where employees confirm the accuracy of their recorded hours. Including an attestation clause in your company’s timesheet policy reduces compliance risks and strengthens accountability. The clause should clarify what employees are verifying, how issues are handled, and how discrepancies are resolved.
Support from Beyond
Managing timekeeping and labor records doesn’t have to be a burden. Beyond offers integrated payroll and time-tracking solutions designed to help businesses stay compliant, simplify payroll, and better understand their workforce. With intuitive digital tools, you can streamline timesheet collection and focus on making informed decisions for your team and bottom line.