Many of us are taking our businesses to the cloud, and limiting the amount of paper scattered about the office. Some of us see filing cabinets as a thing of the past – and that’s no problem at all; in fact, it’s good for the environment! But, operating online doesn’t dismiss us from our record keeping responsibilities.
Did you know that Fair Labor Standards Act (FLSA) requires you to keep certain records for each and every one of your non-exempt workers for at least 3 years?
Fortunately, FLSA does not require a particular form or method of record keeping. You just need to be able to provide the following in the event that a DOL representative asks you for it. Records should always be accessible at your place of employment, or headquarters/main location if you have multiple locations.
The following is a listing of the basic records that an employer must maintain*
- Employee’s full name and social security number.
- Address, including zip code.
- Birth date, if younger than 19.
- Sex and occupation.
- Time and day of week when employee’s workweek begins.
- Hours worked each day.
- Total hours worked each workweek.
- Basis on which employee’s wages are paid (e.g., “$9 per hour”, “$440 a week”, “piecework”)
- Regular hourly pay rate.
- Total daily or weekly straight-time earnings.
- Total overtime earnings for the workweek.
- All additions to or deductions from the employee’s wages.
- Total wages paid each pay period.
- Date of payment and the pay period covered by the payment.
*This list is provided by the Department of Labor and can be accessed in its entirety at http://www.dol.gov/whd/regs/compliance/whdfs21.htm.
The Department of Labor and Fair Labor Standards Act require by law that this information is accurate; keep this in mind as you review your business’s record keeping and payroll practices. Are you recording data as accurately and efficiently as possible or is there a better way to organize information each pay period?
Your HR Shield Advisor can offer assistance in selecting small business payroll or record keeping software, or, if you’re in the market for a payroll service provider; we can also help. HR Shield has many great referrals and partners for payroll processing – whether you’re a big company looking to make a switch, or a small one engaging a service provider for the first time.
A payroll service provider will keep all of the aforementioned data on record for you, and often sets up joint-access to all information so that it can be accessed anytime anywhere by the business owner or management.
To learn more, contact us today.