3-1. unit 3 time and work records mcgraw-hill/irwin copyright © 2006 the mcgraw-hill companies,...
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Unit 3Unit 3
Time and Work RecordsTime and Work Records
McGraw-Hill/Irwin Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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FLSA and Time Records
• The Fair Labor Standards Act (FLSA) requires:– Businesses to have procedures in place that meet
requirements for computing payroll.– Time and work records are designed to gather
information for each payroll period. – These records are used to prepare the regular pay
periods and then the paychecks.
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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•Weekly employees are paid:– 52 times per year – or weekly.
•Biweekly employees are paid: – 26 times per year – or every 2 weeks
Payroll Periods
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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•Semimonthly employees are paid:
– 24 times per year – or twice per month
•Monthly employees are paid: – 12 times per year – or once a month
Payroll Periods
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Marie Santos earns an annual salary of $100,000. – Calculate Marie’s weekly gross earnings:
• $100,000/52 = $1,923.08– Calculate Marie’s biweekly gross earnings:
• $100,000/26 = $3,846.15– Calculate Marie’s semimonthly gross earnings:
• $100,000/24 = $4,166.67– Calculate Marie’s monthly gross earnings:
• $100,000/12 = $8,333.33
Payroll Periods
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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The Need for the Time Records
•The Fair Labor Standards Act:– requires time records for all
employees – except those who are exempt.
•Time records must show:– the day and time when an
employee’s work week starts, – the number of hours worked
each day, – and the total hours worked
during the week.
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Time-Keeping Devices and Systems
• Time clocks & time cards:– Time clocks:
• are mechanical or electrical devices that print on the card the time at which a card is inserted into the clock.
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Time-Keeping Devices and Systems
• Time clocks & time cards:– Time cards:
• used to keep track of the hours worked by each employee.
– A clock station is:• the location where the
time clock and racks of time cards are kept.
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Computing Hours Worked
• Quarter hour system:− An advantage to using
the quarter hour system is that this system makes it easier to figure hours worked.
− The disadvantage it that this system can cost the company in lost work.
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Computing Hours Worked
• Tuesday of one week, Paul Pacelli worked from 8:14 to 12:15 in the morning and from 12:57 to 5:00 in the afternoon. His firm uses the quarter-hour time system. How many hours will the firm records for Paul that day? – Morning – 4 hours – Afternoon -- 4 hours – Total Hours = 8 hours
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Companies that have a manageable number of employees often use time sheets in place of time cards.
Days Time HoursWorked
Reason forAbsence
Sun In Out In Out
Mon 8:30 12:05 1:00 5:30 8
Tues 8:25 11:55 1:00 7:00 9.5
Wed 8:30 12:00 1:05 6:30 9
Thur 8:30 12:30 1:25 5:30 8
Fri 8:35 12:00 1:00 5:35 8
Sat
Weekly Total 42.5
Time Sheets
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Dealing with Lateness to Work
In metropolitan areas there is a steady and growing problem with commuting. Workers are often late to work due to no fault of their own.
– Options: • Carpool/Mass-transportation systems • Work at home arrangements • Flextime systems
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Sales Records
• Sales records vary from business to business.– businesses pay a sales person:
• strictly on the dollar amount of sales generated.• Or may receive an hourly pay as well as a percentage of
sales.
• It is not necessary for firms to keep time records for employees who are paid on the basis of the sales they make
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Labor Distribution
• Labor Distribution: – the cost of labor is often
charged against specific jobs or projects.
– employee marks the time card to indicate which job is to be charged.
– The cost of materials and overhead may also be recorded.
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TEMPORARY WORKERS:• generally receive their pay from a temporary agency. • replace an employee on medical leave or vacation.
CONTRACT WORKERS:• work under contract arrangements.• are paid an agreed upon fee. • work independently.
Other Kinds of Workers
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