HRIS: Timekeeping Tools for Workhour Summary Computation

In an HRIS (Human Resource Information System), timekeeping tools for workhour summary computation are essential for efficiently managing and summarizing employee work hours over a specific period (such as daily, weekly, or monthly). These tools help HR and payroll teams to calculate total hours worked, including regular hours, overtime, breaks, holidays, and any time off, ensuring accurate payroll processing.

Key Features:

1. Regular Hours Worked:
   • The tool computes regular hours based on the employee’s scheduled shifts. It calculates the total work time by subtracting clock-in and clock-out times, considering any breaks or deductions.
   • Regular work hours are typically the hours worked within the predefined schedule (e.g., 9 AM to 5 PM, Monday to Friday).
2. Overtime Hours:
   • Overtime hours are computed based on company policies and legal requirements (e.g., time-and-a-half after 40 hours per week or 8 hours per day).
   • The system automatically calculates overtime hours when an employee exceeds the normal hours worked during a day or a week.
3. Breaks and Meal Time Deductions:
   • The HRIS timekeeping tool accounts for breaks (e.g., lunch or coffee breaks) and ensures that unpaid breaks are subtracted from the total hours worked.
   • Paid breaks, if applicable, are counted toward the total hours.
4. Holiday and Paid Time Off (PTO):
   • The system tracks holiday hours and Paid Time Off (PTO), allowing for their automatic inclusion in the workhour summary.
   • Holiday pay may be calculated at a higher rate (e.g., double time) depending on company policy.
5. Leave and Absences:
   • The HRIS can record other leave types (e.g., sick leave, personal leave, or bereavement leave) and provide summaries on total leave taken and remaining balances.
   • Time off, such as sick leave or vacation, is recorded separately from regular work hours.
6. Shift Differentials:
   • If the employee worked on special shifts (e.g., night shifts, weekend shifts), the system can apply shift differentials or additional pay rates based on company rules.
7. Late Arrivals or Early Departures:
   • The system can flag and calculate time lost due to tardiness or leaving early. Some HRIS systems have tolerance settings that define acceptable time deviations before they impact the total work hours.

Process for Workhour Summary Computation in HRIS

1. Clocking In and Out:
   • Employees clock in at the start of their shifts and clock out at the end of their shifts, either via physical time clocks, web portals, or mobile apps.
   • The HRIS captures the clock-in and clock-out times and computes the total hours worked for each day.
2. Daily Hour Calculation:
   • The system computes the total daily hours worked, taking into account the break times. For example, if an employee clocks in at 8:00 AM and clocks out at 5:00 PM with a 1-hour lunch break, the total hours worked will be 8 hours.
3. Handling Overtime:
   • If an employee works more than the standard hours for a day (e.g., 8 hours/day), the system will compute overtime hours and apply the overtime pay rate.
   • For instance, if an employee works 10 hours in a day, 8 hours are regular time, and the remaining 2 hours are overtime.
   • Overtime is typically calculated at 1.5 times the regular hourly rate, but the HRIS can be configured to use the correct pay rate based on company policy.
4. Summarizing Work Hours for the Pay Period:
   • After each day, the system summarizes the total hours worked for the employee during the pay period (e.g., weekly, biweekly, or monthly).
   • It aggregates regular hours, overtime hours, leave, PTO, and any shift differential into the workhour summary for the pay period.
5. Leave, Absences, and PTO Computation:
   • The system records any sick leave, vacation days, or other absences taken during the pay period.
   • The leave balance is automatically updated, and the workhour summary reflects the total number of leave hours used and the remaining balance.
6. Generating the Workhour Summary Report:
   • The system generates a workhour summary report that details the total hours worked, overtime, break deductions, leave taken, and any shift differentials for the pay period.
   • This report can be viewed by the employee and manager for accuracy and approval.
7. Payroll Integration:
   • Once the workhour summary is complete, the data is often transferred to the payroll system for further processing.
   • The payroll system uses the workhour summary to calculate the employee’s pay based on the total regular hours, overtime, PTO, and any additional pay (e.g., holiday or shift differential pay).

Benefits:

1. Automation and Accuracy:
   • The HRIS tool automates time tracking, ensuring that work hours, overtime, and deductions are calculated correctly, reducing human error.
2. Efficiency in Payroll Processing:
   • Accurate workhour summaries allow payroll teams to quickly process payroll with minimal errors and delays.
3. Transparency for Employees:
   • Employees can easily access and review their workhour summaries, giving them visibility into their total hours worked, overtime, and leave balances.
4. Compliance:
   • HRIS timekeeping tools help ensure compliance with labor laws (e.g., overtime regulations) by automatically calculating and reporting hours worked according to legal requirements.
5. Leave Management:
   • HRIS tools streamline leave management by automatically tracking and summarizing PTO, sick leave, and other absences, ensuring that they are accounted for correctly.
6. Cost Control and Budgeting:
   • Accurate time tracking and workhour summaries provide managers with insights into labor costs and help optimize scheduling and staffing.

Conclusion:

Using HRIS timekeeping tools for workhour summary computation provides organizations with an efficient, automated way to track, calculate, and summarize employee work hours. These tools help ensure accurate payroll processing, compliance with labor laws, and enhanced transparency for both employers and employees.