Timesheet

What Is a Timesheet?

A timesheet is a detailed record that documents the specific hours an employee has worked during a given period. It typically includes the start and finish times of shifts, the duration of any breaks taken, and the total hours worked per day or for a specific pay period. For some roles, timesheets may also track time spent on individual tasks, projects, or clients.

Timesheets serve as a fundamental document for payroll processing, ensuring employees are accurately compensated for their work. They also provide crucial data for business operations, financial analysis, and compliance with labour laws.

The Purpose and Evolution of Timesheets

Timesheets are used for various critical business functions:

1. Payroll Accuracy: The primary purpose of a timesheet is to provide precise data for calculating wages, including regular hours, overtime, penalty rates, and allowances. This ensures employees are paid correctly and compliantly.
2. Compliance with Labour Laws: In Australia, employers are legally required under the Fair Work Act 2009 to make and keep accurate employee records, including hours worked, for at least seven years. Timesheets provide a verifiable audit trail to meet these obligations.
3. Cost Control and Project Management: For businesses operating on projects (e.g., Construction, Mining) or billing clients by the hour (e.g., Labour Hire and Recruitment), timesheets allow for accurate tracking of labour costs per job or client, aiding in budgeting, profitability analysis, and invoicing.
4. Productivity and Resource Management: Analysing timesheet data can provide insights into employee productivity, identify inefficiencies, and help managers optimise resource allocation and future Rostering.

Historically, timesheets were paper-based forms that required manual completion and calculation. The evolution of technology has led to the widespread adoption of Digital Timesheets, which offer greater accuracy, efficiency, and integration capabilities.

Essential Information on a Timesheet

To be effective and compliant, a timesheet should typically include:

• Employee Details: Full name, employee ID, and sometimes department.
• Date Range: The specific dates covered by the timesheet (e.g., daily, weekly, fortnightly pay period).
• Dates Worked: Each specific date on which work was performed.
• Work Hours: Start time, finish time, and duration of all breaks taken for each shift.
• Total Hours Worked: A calculation of total ordinary hours and any overtime hours for each day and the full period.
• Pay Items (Optional but useful): Breakdown of hours by specific pay items if applicable (e.g., standard, overtime 1.5x, double time).
• Project/Task Details (Optional): Where relevant for project costing, details of tasks or projects worked on.
• Approval: Signatures or digital approvals from both the employee and their manager, verifying the accuracy of the recorded hours.

How Microkeeper Streamlines Timesheet Management

Microkeeper's Timesheet Software is a central component of its Workforce Management solution, designed to automate and simplify timesheet processes:

• Flexible Time Capture: Integrates with various methods for recording time, including Time Clocks (facial recognition, fingerprint, NFC), a mobile app with GPS tracking and geofencing for remote or mobile workforces (e.g., Transport & Logistics), and web-based clocking.
• Automated Timesheet Generation: All clock-in/out data automatically populates digital timesheets, eliminating manual data entry and reducing the risk of human error or Time Theft.
• Smart Break Management: The system automatically tracks and applies break rules, ensuring compliance with award conditions for work and rest periods.
• Manager Approval Workflows: Managers can quickly review and digitally approve timesheets from any device. Any discrepancies can be easily identified and addressed.
• Seamless Integration with Payroll: Once approved, timesheet data flows directly into Microkeeper's Payroll Software, automating the calculation of wages, overtime, allowances, and leave, ensuring accurate pay runs.
• Project/Job Costing: Microkeeper allows for employees to clock onto specific "Jobs" or "Cost Centres," enabling businesses to track labour costs precisely against individual projects or clients.
• Comprehensive Reporting: The system generates detailed reports on hours worked, overtime, absenteeism, and labour costs by project or department, providing insights for operational efficiency and auditing.

FAQs About Timesheets

Are timesheets legally required in Australia?‍

The Fair Work Act requires employers to keep accurate records of employee hours worked for 7 years. While it doesn't specifically mandate using "timesheets," they are a highly effective and common method for fulfilling this record-keeping obligation.

Can an employer change an employee's timesheet?‍

Generally, an employer should not change an employee's timesheet without their knowledge and consent, unless it's to correct a clear error and the change is documented and communicated transparently. Unauthorised changes can be a breach of employment regulations.

Do salaried employees need to complete timesheets?‍

While salaried employees are typically not paid by the hour, employers are still required by Fair Work to keep records of their hours worked. Timesheets can be a useful way to record these hours, especially for tracking overtime, leave taken, or ensuring compliance with reasonable working hours.

How do timesheets help prevent payroll errors?‍

By providing precise, verified records of hours worked, digital timesheets reduce the reliance on manual data entry and estimation, directly leading to more accurate wage, overtime, and allowance calculations in payroll.

Best Practices for Timesheet Management

• Implement a Digital System: Move away from manual methods to automated Digital Timesheets for greater accuracy and efficiency.
• Establish Clear Policies: Communicate clear guidelines to employees on how and when to record their time, including rules for breaks and overtime.
• Regular Review and Approval: Ensure managers regularly review and approve timesheets promptly to catch errors early and streamline payroll.
• Integrate Systems: Connect timesheets with your payroll and rostering software for seamless data flow and reduced administrative burden.
• Encourage Timely Submission: Promote daily or end-of-shift time recording to maintain accuracy and prevent missed entries.

Final Thoughts

Timesheets are more than just a record of hours; they are a critical tool for precision in payroll, strategic workforce management, and robust compliance within the Australian business landscape. By embracing modern, integrated timesheet solutions, businesses can significantly enhance their operational efficiency, ensure fair and accurate compensation, and build a strong foundation for sustainable growth.

_{Disclaimer: This entry is intended for informational purposes only and does not constitute legal advice. For tailored guidance, contact the Fair Work Ombudsman or an employment law specialist.}