Tips & Tricks

Virtual TimeClock Tips & Tricks - January 2014

New Virtual TimeClock users are often curious about how their employee hours are totaled. Many times, they're trying to compare their timecard totals to manual calculations and coming up with a slightly different result. So here are two time clock settings that directly affect your timecard totals.

Rounding Rules
Users are often concerned that if they turn on time rounding, they'll lose the actual times their employees clocked in and out. That's not true. Virtual TimeClock will always record and display the exact times employees clock in and out. The rounding rules are applied to the start and stop times only when totaling time worked.

Let's look at an example using quarter hour rounding. A clock in time between 7:53 AM and 8:07 AM will round to 8:00 AM when calculating totals. A clock in time between 8:08 AM and 8:22 AM will round to 8:15 AM when calculating totals. This is the reason new users often wonder why their manual calculations between the start and stop times are not the same as the total hours being reported. The FLSA (Fair Labor Standards Act) allows an employer to round employee time to the nearest quarter hour, but you may be in violation of FLSA requirements if you always round down. In other words, rounding should sometimes benefit the employer and sometimes benefit the employee.
 
Here’s a quick Tip:
Rounding may affect your employee timecard totals in another way. Check out the Riddle of the Missing Dollar to find out how.

Decimal hours vs. Hours & Minutes
Total hours can be displayed as either decimal hours or hours & minutes. If your employee timecards are displaying the totals as hours & minutes, then the daily totals will never add up correctly on a calculator. For example, if an employee worked 7 hours and 50 minutes (7:50) on Monday and 8 hours and 5 minutes (8:05) on Tuesday, you might whip out your trusty calculator and declare they worked 15.55 hours. If that's the number you enter into your payroll program, then you just shorted your employee about 22 minutes. You see a ":" and a "." mean very different things when dealing with time. Yes, they're both symbols used to separate hours and minutes, but one is based on 60 minutes to an hour and the other is based on 100. Getting back to our example, 7:50 hours and 8:05 hours is really 15:55 or 15.92 hours displayed as a decimal.
 
Here’s a quick Tip:
Workers typically like to see their total hours worked as hours & minutes (:55 minutes is a lot easier to relate to than .92 hours), but decimal hours are usually required for payroll processing. The solution is to use the built-in report writer to create a custom payroll report that displays total hours as decimals.

No matter what time clock settings you decide on, you can rest assured that Virtual TimeClock accurately reports every minute your employees work.