This month for our Tip Tuesday we will be giving some great insights on how to maintain and keep payroll for your business.

This week I’ll tell you the record keeping requirements set under the fair labor standards act (FLSA). So buckle in and beam me up to payroll heaven, Scotty. Here we go!

Federal Codes

First things first! The FSLA has set employee standards for you to keep as their employer. Unless your employee(s) are exempt from these regulations, they must be paid minimum wage and must be paid one and one-half times or more over their regular pay for overtime hours worked! This is vital for you company to maintain an honest business and spotless record.
It is also required that you display an official poster outlining the provisions of the Act. If you don’t have one posted then you can find one electronically by clicking here and printing it off.

According to United States Department of Labor Wage and Hour Division (WHD), there are a few documents that you have to keep for a certain amount of time if you want to stay up to code with their recordkeeping regulations.

Every non-exempt worker that you have must have certain records kept providing certain information about them. There isn’t any particular required form that has to be filled out, however there is certain identifying information about your non-exempt employee as well as their hours and wages that is required. This includes:

  1. Your employee’s full name and social security number
  2. Your employee’s address and zip code
  3. Their birth date (If younger than 19)
  4. Their sex and occupation
  5. Time and day of week when employee’s workweek begins
  6. Hours worked each day
  7. Total hours worked each workweek
  8. Basis on which employee’s wages are paid
  9. Regular hourly pay rate
  10. Total daily or weekly straight-time earnings
  11. Total overtime earnings for the workweek
  12. All additions to or deductions from the employee’s wages
  13. Total wages paid each pay period
  14. Date of payment and the pay period covered by the payment

Payroll records, collective bargaining agreements, as well as sales and purchase records should be kept for 3 years.
Records where wage computations have been kept should be retained for at least 2 years.
You can keep your records at either your place of employment or in a central records office, which ever is more convenient.

Utah Codes

The State of Utah has a few different requirements than the federal government does. Here are some of the most important documents that must be kept for a certain period of time in Utah.

  1. Attendance and time sheet records must be kept for 5 years.
  2. Disability and sick benefits records must be kept for 4 years.
  3. Earning records must be kept permanently.
  4. Employee contracts must be kept for 7 years.
  5. Payroll records after termination must be kept permanently.
  6. Salary and rate changes must be kept for 10 years.

To learn more visit Payroll Experts.

What about timekeeping you say? There is more leeway given here for you as an employer. You can choose any timekeeping method that you choose. I personally like using Harvest as a means of timekeeping as it not only keeps track of each employee’s time, but it also tells what project they were working on at the time.

An employee with a fixed schedule that doesn’t change too much is a bit different. The employer may choose to keep a record showing the exact schedule of the employee and simply state that they followed it over the pay period. If they end up working more or less than the fixed schedule, the actual number of hours worked must be recorded, unless an exception is provided.

To learn more visit the Wage and Hour Division Website.

If you need any further help, why not get in touch with us?