Standards
OVERVIEW OF Payroll Timekeeping
Accurate timekeeping is essential at Indiana University.
In an environment where employees range from salaried faculty and administrative staff to hourly and part-time workers, precise time tracking supports fair compensation, regulatory compliance, and fiscal accountability. Review the standard below for guidance on payroll timekeeping for non-exempt employees, including requirements and best practices related to this process. Review the SOP below for information about requesting a change to the work area timekeeping method or system.
The Office of the University Controller is in the process of converting Standard Operating Procedures (SOPs) into IU accounting standards. As such, this SOP is no longer being updated. Information is as current as of the date of last revision available on the SOP. Please continue to check back as SOPs are converted into standards within this book.
UCO-PAY-9:00: Payroll Timekeeping for Non-Exempt Employees
Prerequisites
Prior to reading the standard on Payroll Timekeeping for Non-Exempt Employees, it is beneficial to review the below items to gain foundational information:
Preface
Accurate and timely recording of hours worked is fundamental to the accurate and timely payment of employees and is required under federal and state laws and regulations. The purpose of this standard is to ensure accurate and timely reporting of hours worked and time-off benefits used by non-exempt employees.
Introduction
Federal and State law requires Indiana University to record, review, and pay for the hours worked by non-exempt employees timely and accurately. This standard will provide an overview of University Payroll responsibilities as well as requirements of non-exempt employees, approvers, pay processors, and fiscal officers in regard to the timekeeping process.
Importance and Impact of Payroll Timekeeping for Non-Exempt Employees
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and record-keeping standards for the United States. Indiana University supplements the Act with HR policies on matters not covered in the FLSA, such as specific work hour rules, rest periods, and lunch breaks.
Payroll Timekeeping for Non-Exempt Employees Discussed in Detail
Timekeeping Method
University Payroll oversees and manages Kuali Time, the university’s official timekeeping system. University Payroll has the authority and responsibility to create, implement, monitor, modify, and enforce operating procedures and internal control processes consistent with this standard to ensure accurate and timely collection of the hours worked by Indiana University’s non-exempt employees in compliance with the university’s legal obligations.
The university maintains two methods for recording time, synchronous (i.e., recording time worked by clocking in and out of an approved electronic timekeeping system) or asynchronous (i.e., recording time worked at the end of the workday in an approved electronic timekeeping system). Synchronous timekeeping is the strongly preferred method of timekeeping.
University Payroll may, but is not required to, grant exceptions to the timekeeping method or allow employees to record their time manually on paper outside of an electronic timekeeping system.
Recording of Time Worked
Non-exempt employees shall accurately record their hours worked and time-off benefit hours used at least daily at the conclusion of their working day. All time must be recorded in Kuali Time. Any exception to this standard must be pre-approved by University Payroll.
Non-exempt employees are prohibited from knowingly or intentionally:
1. Submitting false time records.
2. Allowing anyone else to record their hours worked; or
3. Recording hours worked on behalf of another employee unless approved accommodation is required in accordance with ADA policy.
Non-exempt employees may not record their hours worked in advance. Time-off benefits may be recorded either in advance of or after use of the benefit.
Approval of Time Recorded
Approvers and payroll processors must review and approve all hours worked and the attendance records of non-exempt employees before they are submitted for payment. Approvers and payroll processors are required to adjust an employee’s hours worked or benefit hours used to correct any errors or omissions in order to provide timely and accurate payment.
Approvers and payroll processors are prohibited from knowingly or intentionally approving false time records. Responsibility centers and departmental fiscal officers are responsible for establishing proper procedures and adequate controls to ensure the integrity of the payroll expenditures on their accounts including accurate and complete timekeeping procedures.
Requirements and Best Practices
Requirements
- Non-exempt employees are required to record their hours worked and time-off benefit hours used at least daily, at the conclusion of their working day. All time must be recorded in Kuali Timekeeping. Any exception to this standard must be approved by University Payroll.
- Non-exempt employees may not record their hours worked in advance. Time-off benefits may be recorded either in advance of or after use of the benefit.
- Non-exempt employees are prohibited from knowingly or intentionally:
- Submitting false time records
- Allowing anyone else to record their hours worked, or
- Recording hours worked on behalf of another employee.
- Approvers and payroll processors must review and approve all hours worked and the attendance records of non-exempt employees before they are submitted for payment.
- Approver and payroll processors are required to adjust an employee’s hours worked or benefit hours used to correct any errors or omissions in order to provide timely and accurate payment.
- Approvers and payroll processors are prohibited from knowingly or intentionally approving false time records.
- Responsibility centers and departmental fiscal officers are responsible for establishing proper procedures and adequate controls to ensure the integrity of the payroll expenditures on their accounts.
- Payroll processors should contact University Payroll with any exception requests.
Employees who are subject to the minimum wage, overtime pay, recordkeeping, and youth employment standards of the Fair Labor Standards Act of 1938, as amended. The term includes part time, temporary work-study, support and service staff, and professional overtime-eligible staff.
Person who is responsible for reviewing and approving a non-exempt staff member’s recorded hours in a university-managed timekeeping system. The Approver should have direct knowledge of the non-exempt staff member’s hours worked and attendance; typically, the Approver is the non-exempt staff member’s direct supervisor.
A person responsible for ensuring the completeness and timeliness of all time and attendance information. The Payroll Processor reviews the non-exempt staff members’ hours worked, benefit time taken, and earn codes used for compliance with university policies and procedures.
A person who is trained and hired for the purpose of providing fiscal, policy, and internal control management of all funds in a unit, and is responsible for ensuring that processes and related controls have been established to achieve the organization’s mission and objectives.
Recording time worked by clocking in and out of an approved electronic timekeeping system.
Recording time worked at the end of the workday in an approved electronic timekeeping system.