Employee timesheets are a record of the hours an employee works, typically used to calculate their pay and ensure they’re compensated for their time.
What is an employee timesheet?
An employee timesheet is a document or software program used to track the amount of time an employee works. It typically includes:
- Employee information: Name, ID number, department, etc.
- Date and time: Records the days and hours worked by the employee. This may involve start times, end times, and break times.
- Hours worked: Length of time on shift.
- Hours on break: Length of time on break.
- Tasks or projects: Some timesheets allow employees to specify the tasks or projects they worked on during their shift.
Timesheets can be paper-based or electronic. Many businesses now use cloud payroll software that integrates with timesheet functions, allowing employees to submit their hours electronically.
Why use a timesheet?
Timesheets make it easy for employers to see data on employees’ productivity and work patterns. This information is used in various ways:
Accurate payroll
Timesheets ensure employees are paid correctly for the hours they work. They provide a clear record of attendance, overtime, and breaks, minimising errors in payroll calculations.
Project management
By tracking time spent on specific tasks or projects, timesheets help managers understand how long tasks take and how resources are being allocated. This allows for better project planning, budgeting, and resource allocation.
Employee productivity
Timesheets can be used to monitor employee work patterns and identify areas for improvement. Analysing timesheets can reveal inefficiencies or areas where employees are spending too much time on certain tasks.
Compliance
In some industries, timesheets may be required by law for record-keeping purposes. They can also be helpful for demonstrating compliance with labour regulations regarding minimum wage and overtime pay.
Legal documentation
Timesheets can serve as legal documentation in case of disputes over pay or work hours. They provide a verifiable record of employee attendance and time worked.
What are the advantages of using electronic timesheets?
Timesheets on spreadsheets can be a viable option for very small businesses with a limited number of employees and a simple pay structure. However, for most businesses, the limitations outweigh the benefits.
Payroll software specifically designed for timesheet management offers greater accuracy, efficiency, security, and functionality, making it a worthwhile investment in the long run.
More accurate employee time tracking
Timesheet software enable staff to clock in and out directly from mobile or web apps, capturing exact work hours and attendance data securely, and eliminating errors and lost paper records. Work hours, schedules, and attendance records are stored in a centralised digital space, making them easy to access whether managing admin at home or working on-site.
Real-time data syncing across multiple devices
When timesheets are hosted online, you can enjoy seamless, instant syncing of timesheet data across devices. This allows updates and approvals in real time instead of waiting for manual submissions or delayed paperwork.
Better communication with employees
Electronic timesheets create a central digital hub where you and your staff can quickly exchange information about hours worked, overtime requests, and shift changes, without chasing paper forms or tracking people down.
Easier access and secure storage boost transparency, make approvals faster, and allow managers to send updates or resolve queries directly through built-in messaging features or automated notifications
Streamlined shift acceptance
Timesheets via app or software let employees receive instant notifications of new shifts or changes, allowing them to accept or decline assignments directly from the app or web portal. This eliminates manual communication and delays when managers can see acceptance status in real time, freeing up time and improving visibility over shift coverage.
How often do timesheets need to be filled out and submitted?
How often you fill out a timesheet depends on your business’s payroll process. Some do it weekly, which is the most common, bi-weekly for pay periods occurring twice a week, and monthly for salaried employees. Hourly workers might submit timesheets more often than salaried ones. Smaller companies may be more flexible, while larger ones have set deadlines.
What happens if an employee forgets to clock in or out?
From an employee’s perspective, they need to notify a supervisor as soon as possible with a written explanation and supporting evidence of worked hours. Employers would consider the explanation and any available documentation, then edit the timesheet affected. If the reason is found invalid, the employer may deduct payment for the missed time.
Are businesses legally required to use timesheets?
In Australia, there’s no blanket legal requirement for businesses to use timesheets specifically. However, the Fair Work Act 2009 mandates that employers keep accurate records of employee hours worked for payroll and compliance purposes.
How can I ensure my employee timesheets are accurate?
Clearly communicate timesheet policies and procedures to your employees. This includes explaining what information needs to be recorded, submission deadlines, and how to handle missed punches. Consider providing training on how to properly fill out timesheets.
While immediate managers should regularly validate timesheets, conducting occasional random audits of timesheets can help deter time theft or inaccurate entries. Implement a system where timesheets need approval from a supervisor before being submitted for payroll processing. This adds an extra layer of verification.