PLEASE GIVE A COPY TO THE OWNER                December 2011

PAYROLL & HR ALERT

News to Inform and Protect Company Owners

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Federal Rounding Rules for Time Keeping

The Dept. of Labor allows the rounding of time worked as long as the rounding is consistent “up and down”. One method of rounding is the 7/8 minute rounding rule: 7 minutes round down and 8 minutes round up.

Clocking In: An employee’s day starts at 8:00 am.                                                                          * If the employee clocks-in @ 8:05 am, the employer must round “down” to

8:00 am. If the employee clocks-in @ 8:09 am, the employer must round “up”

to 8:15 am.

* If the employee clocks-in @ 7:55 am, the employer must round “down” to 8:00.

If the employee clocks-in @ 7:52 am, the employer must round “up” to 7:45 am.

Clocking Out: An employee’s day ends at 5:30 pm.

* If the employee clocks-out at 5:36 pm, the employer must round “down”

to 5:30 pm. If the employee clocks-out at 5:39 pm, the employer must

round “up” to 5:45 pm.

* If the employee clocks-out at 5:25 pm, the employer must round “down” to 5:30

pm. If the employee clocks-out at 5:22 pm, the employer must round “up” to

5:15 pm.

The employer must pay its non-exempt employees time and one-half overtime for hours worked without permission, and the employee’s pay must be based on the employee’s regular rate of pay for all hours worked in excess of 40 in a workweek. The employer can discipline an employee, including termination, for working without permission.

Note:  Individual states may have their own requirements.

January’s letter will address the IRS’s 1099 Voluntary Classification Settlement   Program.

APC is not offering legal advice. We recommend that that you consult US Wage & Hour or with labor law attorney Grant Petersen of Ogletree Deakins P.A., 813-289-1247,

ADVANCED PAYROLL CONSULTANTS

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