How A Time Card App Works for Exempt and Nonexempt Employees

App Works for Exempt and Nonexempt Employees


Most businesses use time tracking to manage their hourly employees. While there are several benefits to tracking hourly employees using a timekeeper app it is also useful for tracking salaried employees as well. Most businesses don’t track salaried employees’ time because they are exempt from paying them overtime. Salaried employees are paid a flat amount regardless of the number of hours they work.

When you compare this to hourly workers who must be paid appropriately for every minute they work, including overtime, you can see why they focus on tracking these employees’ hours over exempt employees. There are several features that a time card app has that can be beneficial when tracking salaried and hourly employees alike.

Track Attendance Along With Hours

Tracking your non-exempt hourly employees with a time card app helps track hours and overtime and can also be used to track attendance. For non-exempt employees, not showing up for work means less pay since hours worked equals hours paid.

Many businesses forget that by not tracking salaried employees, you run the risk of lower productivity since they aren’t held accountable for the days and hours they work. Using a timesheet management app, you can track a salaried employee’s attendance to ensure that regardless of the number of hours, they are present when they should be and doing their job.

It’s also important to remember that while you’re not required to pay salaried employees for overtime, it is good to note when salaried employees work over so that you can compensate them in some way if you choose. This is a good way to retain good employees.

Prevent Time Theft

Whether hourly or salaried, employees may be tempted to commit time theft if you’re using traditional timekeeping means. Using a manual time tracking process means they may punch in for other employees, fail to clock out, neglect to take breaks or take care of personal business while on the clock. These issues can result in lost productivity, lost profits, and, even worse, labor law violations.

A time card app keeps exempt and nonexempt employees honest about their work hours by cataloging every punch and ensuring that each employee’s ID is unique so that buddy punching cannot occur. There is also the option of productivity trackers to ensure that both hourly and salaried employees stay on task and do what they should be doing.

A time and attendance app can also send reminders to ensure that employees take breaks when they are supposed to. Even salaried employees are entitled to certain time off, and without proper time tracking, it can be challenging to make sure they get it.

Better Payroll Processing and Record-Keeping

Getting employees paid correctly and on time is crucial to running a successful business. While tracking hourly employees’ time is part of that process, it is also necessary to track salaried employees’ time for accounting records and ensure they meet their job requirements.

For hourly employees, an online timecard system is used for logging pay rates and hours automatically, and the data can then be sent to payroll for immediate processing. Hourly wages aren’t necessary for salaried employees, but they still receive a paycheck that needs to be processed and accounted for. A team time tracking app helps keep records accurate and up to date for both exempt and nonexempt employees so that there aren’t any labor law or tax law violations.

While exempt and nonexempt employees are subject to different rules, it is essential to keep an accurate account of work regardless. By investing in a modern time card app, you can do exactly that!

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