HRIS: Timekeeping Tools for Timesheet Daily Computation

In an HRIS (Human Resource Information System), timekeeping tools that handle timesheet daily computation for pay periods are essential for ensuring accurate payroll processing. These tools calculate the total hours worked for each day during a pay period and compute the appropriate pay based on the hours worked, including considerations for overtime, leave, breaks, and other pay rules.

Key Features:

1. Daily Work Hours:
   • The system records daily start and end times (clock-in and clock-out) for each employee.
   • The tool computes the total hours worked for each day by subtracting the clock-in time from the clock-out time.
   • Breaks or lunches (if applicable) are deducted automatically to calculate the net hours worked.
2. Overtime Calculations:
   • Overtime hours are calculated based on the company’s pay policies (e.g., time-and-a-half or double time after 40 hours/week or after 8 hours/day).
   • The HRIS tool can automatically flag when overtime hours are worked and apply the correct multiplier (e.g., 1.5x normal hourly rate).
3. Leave and Absence Tracking:
   • Any sick leave, vacation days, or other types of leave are automatically deducted from the total hours for the day or week, depending on the pay structure.
   • The HRIS tool can also calculate the appropriate pay for these hours if employees are eligible for paid time off (PTO) or other benefits.
4. Shift Differentials:
   • Some HRIS systems allow for the application of shift differentials (e.g., extra pay for night shifts or weekend work).
   • The system can calculate and apply additional pay based on the shift worked (e.g., a percentage increase in the hourly rate for late-night or weekend shifts).
5. Time Rounding:
   • HRIS systems may round the time entries to the nearest quarter-hour, half-hour, or other predefined increments. This helps maintain consistency and simplifies payroll processing.
   • For example, if an employee clocks in at 8:07 AM, the system may round this to 8:00 AM or 8:15 AM depending on the rounding rules set.
6. Work Schedules:
   • Work schedules (e.g., standard 9 AM to 5 PM) are often input into the system, and the tool calculates deviations from the schedule.
   • The HRIS tool may flag underreported or overreported hours compared to the expected schedule and alert managers or HR personnel for review.
7. Break Times:
   • The HRIS system can automatically deduct break times if they exceed a certain threshold (e.g., a 30-minute lunch break after 5 hours of work).
   • The break time deductions are computed based on company policy, such as whether breaks are paid or unpaid.
8. Holiday Pay:
   • If an employee works on a company holiday, the system can automatically compute holiday pay, often at a higher rate (e.g., double time).
   • The HRIS can cross-check holiday dates and flag time worked during holidays for additional pay calculations.

Steps for Computing Daily Timesheet Hours and Pay Period Summary

1. Collect Time Entries for Each Day:
   • Employees clock in and clock out using the timekeeping system, whether through web portals, mobile apps, or physical time clocks.
   • The HRIS records these entries and processes the data to compute the total work hours for each day.
2. Deduct Breaks and Calculate Net Hours:
   • The system automatically deducts any applicable break times (e.g., 30-minute lunch) based on the company’s policies.
   • If break times are unpaid, they are subtracted from the total hours worked.
   • The remaining time is the net work hours for each day.
3. Handle Overtime and Special Pay Rates:
   • If an employee works over a certain threshold (e.g., 40 hours per week or 8 hours per day), the system will automatically calculate overtime.
   • Overtime is calculated at the appropriate pay rate (e.g., 1.5x the regular hourly rate).
   • For example, if an employee works 10 hours in a day, the system may calculate 8 regular hours and 2 overtime hours.
4. Apply Leave and Absences:
   • If the employee has taken any leave (sick, vacation, personal, etc.), the system will deduct those hours from the total for that day.
   • If leave is paid, the system will compute the pay for the leave hours based on the employee's usual hourly rate or PTO balance.
5. Ensure Correct Time Rounding:
   • If the HRIS has rounding rules, the system will round the time entries accordingly (e.g., rounding clock-in times to the nearest 15-minute increment).
   • This ensures consistency in payroll calculations and reduces errors.
6. Generate Daily Summary and Weekly Pay Period Data:
   • At the end of each day, the HRIS compiles a daily timesheet summary for each employee, showing their total hours worked, overtime, leave hours, and any other pay-related data.
   • The system then aggregates this information across the pay period (e.g., biweekly or monthly) to generate a full pay period summary, including:
     • Total regular hours worked.
     • Total overtime hours.
     • Total leave hours.
     • Any special pay (e.g., shift differential, holiday pay).
7. Prepare for Payroll:
   • Once the daily timesheet computations are complete, the HRIS generates a payroll report that includes the employee's total hours for the pay period, the applicable overtime, leave hours, and any deductions.
   • This payroll report can be exported to your payroll processing system for further review and payment processing.

Benefits:

• Accuracy: Automated calculations ensure no errors in totaling hours worked, calculating overtime, or applying deductions.
• Efficiency: HRIS tools streamline the process of daily and pay period computations, saving time and reducing administrative overhead.
• Compliance: Ensures compliance with labor laws (e.g., overtime, minimum wage) and company policies regarding breaks and leave.
• Transparency: Employees and managers can view their timesheet data, providing transparency into hours worked, overtime, and pay.
• Payroll Accuracy: The system’s integration with payroll tools ensures accurate, timely payroll processing, minimizing discrepancies and delays.

Conclusion:

HRIS timekeeping tools simplify the entire process of calculating daily work hours, overtime, leave, and other pay-related factors, helping to ensure that employees are paid accurately and on time, while also improving the efficiency of payroll management.