Home>Knowledge Base>TimeFlow>How To>How to -- Exceed Federal Payroll Guidelines and Guarantee Fair Compensation for Employees When Rounding Hours
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Article ID83
Created On11/30/2016
Modified11/30/2016
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How to -- Exceed Federal Payroll Guidelines and Guarantee Fair Compensation for Employees When Rounding Hours

Using TimeFlow , you can avoid overpaying or underpaying in the short term or long term even if Federal Guidelines allow it. Why do we say this? Because employees always seem to complain when they are underpaid, but usually do not complain when they are overpaid. 

Although federal guidelines are stringent on fairness, they allow a certain flexibility on timesheet calculations that makes it easier for individuals who still use paper or manual methods to calculate their payroll.  In short, this leads to a small over payment or underpayment in individual pay periods.  Federal guidelines allow up to 15 minute interval rounding.  For example, an 8:07 AM entry can be rounded down to 8:00 AM or an 8:08am entry can be rounded up to 8:15am. Now the catch here is that you cannot round to the employer's favor by rounding down but not rounding up when the employee benefits. You must be neutral and consistent in your calculations across all pay periods.  This results in an averaging out of entries that converges to breaking even for both the employee and the employer.  It must be clear that although flexible, the policy must be enforced neutrally for the duration of the employee's pay periods.

The hard part that TimeFlow helps with is the concept of consistently rounding without errors.  Manual calculations can introduce consistent errors which is nearly impossible when using a highly accurate and time tested application such as TimeFlow. Calculating hours manually can open up a can of worms and needs regular auditing to ensure compliance.

Duoserve's calculations and reports of timesheet hours far exceed Federal Department Of Labor Guidelines, and have been tested over many years, never being proven inaccurate by any of our thousands of customers.

To better understand federal guideline see this helpful article written by DWT.com:


http://www.dwt.com/Round-At-Your-Own-Risk--Timekeeping-Rounding-Requirements-Clarified-05-17-2016/