3 Reasons to Keep Employee Payroll Records

by Deborah Z Mark

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You have employees, right?

I bet they like to get paid.

And paid correctly.

In order to pay your employees correctly (and keep them coming back to work), you need to keep accurate records.

Don’t just take my word for it. Here are three compelling reasons for maintaining accurate payroll records.

3 Good Reasons to Keep Track of Employee Time

  1. Recordkeeping is mandatory under the FLSA. Employers who don’t keep required records are subject to fines and penalties.
  2. In the event of a lawsuit, the employer must prove how many hours an employee worked in any week. If the employer does not keep records, the employee’s records (even if inaccurate) will be used.
  3. Federal law requires payroll records to be retained for 3 years. Arizona law requires records to be retained for 4 years.

You might use an online system, have employees punch a time clock, or write their time worked in a notebook – or even on a sheet of paper. Just be sure to use a consistent method of recording time worked for payroll.

Then be sure what you pay matches what has been recorded.

See? It’s simple.

Need help with payroll? Call managestaff.

We’ll make it simple.

managestaff.

It’s what we do.

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