My name is Morgan Law, and
i'm from finepoints.biz,
and I love helping business
owners and bookkeepers get organized.
And I even have a whole YouTube
channel dedicated to that today
and partnering with quick books
to do a video series
on how to help business
owners run their business
more efficiently.
Time cards are more than just clocking in
and clocking out.
There are lots of laws
that you need to be aware of
in order to stay compliant
with the Fair Labor Standards Act.
In this video, we're going to go over
what you need to know
for calculating your employees time data.
First, I'm going to talk about four tips
in using the free time
card calculator tool.
That is a mouthful.
And then I'm going to go over
three tips to avoid issues.
If you find this topic helpful,
make sure to like this video
and then subscribe to QuickBooks'
YouTube channel for
more videos like this.
Paying employees
accurately is obviously very crucial
to running your business.
The free time card calculator
tool makes it super easy.
I'm going to teach you how to use it now.
Number one, select time card details.
First, do you want to start
by selecting the type of time card
and then the number of days?
So five days from Monday through Friday
and seven days from
Monday through Sunday,
and then pick either
weekly or biweekly,
depending on
if you want to just see a
one week spread or two.
Number two
add hourly and overtime rates.
So next, you want to select either
yes or no if the employee is eligible
to receive overtime.
Usually that is over 40 hours in a week
or over eight hours in a day.
Check your local laws to make sure.
Number three, add times worked
and don't forget overtime and breaks.
So you want to start
by putting your employees
clock in and clock out
time as well as any overtime.
Next, add any unpaid breaks.
And that break time
is subtracted from the total.
As the clock in and clock out
times get filled in,
the tool will calculate
each employee's total hours,
both overtime and regular,
as well as their total gross pay.
number for a download
and save or print the data.
So if you would like a spreadsheet
of all your employees time data
just into your email address
in the box, provided
then you can open it up
in Microsoft, Excel,
Google Sheets or another application.
Now that you know the basics
of how to use the free time
card calculator tool,
we're going to go over three issues
that you want to try to avoid.
Number one, misclassified employees,
most of the time you're salaried
employees are going to be exempt
from getting overtime,
but not in every case.
If an employee gets misclassified,
they might miss out
on getting those overtime wages
that they're eligible for
And then you could be
at risk of unpaid
back wages as well as attorneys fees.
Number two, failure to pay overtime.
So I have a statistic here
that says labor lawsuits rose
four hundred and seventeen
percent from 1997 to 2017.
And the majority of those,
the employer, you had to pay back wages.
So you want to be really careful
with paying overtime correctly,
not just to avoid those fees,
but also because
it's the right thing to do.
Any nonexempt employee
who works over 40 hours
a week must be paid overtime.
And in some places, it's
actually over eight hours a day.
So check your local state
and see what the regulations are.
And managers can discipline employees
for not following the company
guidelines on overtime,
but you cannot deny them overtime pay.
So if someone worked overtime,
you got to pay them for it.
Number three, mismanaged employee breaks.
So the federal government
doesn't have certain regulations or laws
governing breaks,
But there are 21 states
that have made their own meal
and rest break rules.
Typically, any break
under 20 minutes is considered paid time,
so the employee should not clock out
and any break over
30 minutes is considered unpaid time
So they should clock out.
And again, if you do not do this
correctly within your business,
you are at risk of getting sued.
Before I was a bookkeeper,
I actually managed hourly employees
at a big company.
And it was a huge part of our culture
to get that really good
break and meal compliance.
And where I live,
you actually have to take your meal break
by your fourth hour worked.
So we are constantly reminding people,
oh, it's time you got to go
take your lunch break, hurry, go.
And so make sure that is a part
of your company culture as well.
The good news is that the right tools
are really going
to help you be super accurate
when you're doing timecard data
and you're going to avoid any payroll
and time tracking issues.
The free time card calculator tool
that we spoke about in
this video is a great way
to track employee time.
Quickflix Time really makes it easy
to automate employee time tracking.
With the mobile app,
you can track submit
an approved time from anywhere.
It's also fully integrated
with QuickBooks Online
and QuickBooks payroll.
So you can manage your business
all in one place.
If you found this content valuable,
please give this video a thumbs up
as well as subscribe to QuickBooks'
YouTube channel down below.
Thank you so much for watching
and I'll see you in the next video.