Tracking Hours for Payroll

According to the U.S. Bureau of Labor Statistics in the article Characteristics of minimum wage workers, 2023, nearly 60 percent of all US wage and salary workers in 2023 where paid by the hour.

So it makes sense most small businesses with employees have at least one hourly employee on payroll.

If that describes you, then tracking employee hours is probably a good idea. Not just for calculating payroll, but for compliance too.

The Fair Labor Standards Act (FLSA) requires employers to accurately track all hours worked by non-exempt employees (hourly) to ensure proper overtime pay, and to keep them for at least three years. However it does not specify how.

If curious, the FLSA published Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA).

You could keep records with pen and paper if you wanted, but it may not be the best choice, especially if you are trying to speed up your administrative process.

To make things speedy, accurate, and easy to report, your best bet is using time clock software available online.

Whether AI will be used for this is anyone's guess, but not yet.