What Is a Timesheet? How It Works and Why It Matters

A timesheet is a tool employers use to record the hours an employee or contractor works during each pay period. It tracks when the employee started and stopped work and any breaks or overtime they took. 

Timesheets can be physical paper records or digital tools. The exact structure varies by industry and business type. Accurate timesheets are necessary to calculate payroll correctly; they’re also helpful for HR compliance and project visibility. 

Read on to learn more about what a timesheet is, how they work, and what types you can use.

What Information Is Included on an Employee Timesheet? 

Employee timesheets can include a wide range of work information, including: 

• Employee name, identification number, and role

• Date worked

• Clock-in and clock-out times

• Break times

• Regular and overtime hours

• PTO or other non-work time classifications

• Project or job codes

• Manager approval

Not every timesheet includes all these fields. The exact structure of a timesheet depends on the structure of your business and the specific details you need to track. 

What Is The Difference Between a Timesheet and a Timecard? 

Both timesheets and timecards track hours worked, but they’re structured differently. A timecard only tracks when an employee clocks in and clocks out, without any additional details. A timesheet provides more information about breaks, overtime, and specific projects the employee worked on. 

How Do Timesheets Work From Clock-in to Payroll? 

Employees use timesheets to track when they work and what they’re working on. HR teams then use this information to calculate payroll and keep accurate employee records. 

Timesheets are most important for hourly employees, as their pay is based on the number of hours they work. However, many salaried employees also use them to track how long they spend on each project. Law firms, advertising agencies, and consulting firms often use timesheets to calculate billable hours for each project. Contractors and freelancers may also use them to track work hours and send accurate invoices. 

Here’s a step-by-step breakdown of how the process works for hourly employees. 

1. Employees Record Their Time

As each employee works, they use the timesheet to keep track of when they start and stop work. They take note of when they took breaks and if they worked any overtime hours. In many cases, employees also record the specific projects they’re working on and tasks they completed. 

2. Employees Submit Their Timesheets

At the end of each pay period, employees submit their timesheets to their manager or HR department for review. This process usually happens weekly or biweekly, depending on the company’s pay schedule. 

3. Managers Review and Approve Hours

Next, the manager reviews every timesheet to make sure it accurately reflects the number of hours the employee worked. 

If the timesheet is correct, the manager approves it and sends it to HR for payroll processing. If the manager has questions or suspects that the timesheet is incorrect, they discuss it with the employee and make any necessary adjustments before finalizing payroll. 

4. Approved Hours Move to Payroll

The HR team uses approved timesheets to calculate pay for hourly employees and distribute paychecks. 

Modern HR tools like Justworks combine time tracking and employee payroll in one convenient platform. HR doesn’t need to manually re-enter data from timesheets into a separate payroll system—the process happens automatically. 

Justworks also allows system administrators to record standard work hours and overtime for employees. This makes it easier to fix timesheet errors before payroll goes out. 

Paper, Spreadsheet, or Digital: Types of Timesheets

There are several different types of timesheets, ranging from paper forms to automated digital tools. Here’s how each type works and the pros and cons to consider. 

Paper Timesheets

In the past, many companies relied on paper forms or punch cards to track employee hours. This method isn’t common anymore, but some small teams still use it. 

Paper timesheets have a few notable limitations. It can take hours to manually review and process paper timesheets each week, which takes managers and HR teams away from other important tasks. 

Paper timesheets also require dedicated cabinets and filing systems, which take up a lot of space in your office and are difficult to keep organized. There’s also no digital backup if your physical forms are lost or damaged. 

Spreadsheet Timesheets

Spreadsheet platforms like Excel and Google Sheets are another popular solution for time tracking. But, like paper timesheets, spreadsheets have their limitations. 

Anyone with file access can view or edit the timesheets, meaning they’re not always secure. Over time, duplicate and conflicting files can pile up in your systems, making it difficult to find the specific timesheets you’re looking for. 

While formulas can handle some of the payroll calculations automatically, managers and HR still need to manually review them for accuracy. A single spreadsheet mistake could lead to significant payroll issues and compliance violations. 

Digital Timesheets

Digital tools like Justworks take the headache out of time tracking. They use automations so you don’t have to waste time on manual tracking and approval processes. Digital timesheets are also very accessible and easy for employees to use.

Instead of writing down their hours on a paper form or spreadsheet, employees use an app to track their time. All they need to do is push a button on their phone or computer to clock in and clock out. Justworks can also automatically calculate overtime hours and send employees break reminders during the day.

Justworks’ timesheet software also automatically syncs with payroll. Once hours are approved, pay is calculated automatically, which reduces the risk of errors. Time tracking records are stored and organized in the app for compliance. 

Why Are Timesheets Important for Employers? 

Timesheets provide an accurate record of when your employees worked and what they worked on. They also help HR teams stay organized, comply with labor laws, and improve their scheduling practices. 

Here are some of the business benefits of accurate time tracking: 

• Payroll accuracy: Payroll teams have a detailed record of hours worked, so each employee gets paid the correct amount, on time. 

• Supports HR compliance: Timesheets give HR teams a detailed record of overtime, breaks, and PTO, which makes it easier to comply with federal, state, and local labor regulations. Keep in mind that laws may vary depending on both your location and your employee’s location, and that timesheets alone aren’t always enough for compliance. 

• Labor visibility and project management: Timesheets help employers understand what their employees are working on and how long certain tasks take. It also helps them spot overtime patterns and improve their scheduling. 

• Operational consistency: By standardizing timesheet submission and approval processes, employers can limit manual work. 

How To Make Timesheets Work Better For Your Team

A consistent time tracking system prevents payroll errors and helps your entire team stay organized.

First, make it as easy as possible for your employees to track their time accurately. Tracking time through an app is simpler than manually recording the start and end times for each shift. During onboarding, show employees how to fill out a timesheet for work to prevent any confusion.

Even with a clear, straightforward system, missing or inaccurate timesheets can still happen. To address this, give managers or HR staff access to employee timesheets so they can correct any errors that come up.

Finally, integrate your time tracking and payroll processes in one platform. This limits the need for manual re-entry, which helps prevent errors when calculating labor costs. When you’re copy-pasting timesheet data from spreadsheets into payroll systems, it’s easy for mistakes to happen. But when your systems are integrated, payroll processes automatically once hours are approved.

Spend Less Time Managing Timesheets With Justworks Time Tracking

Accurate timesheets are a must for any business, especially those with hourly employees. Time tracking software makes it easier for both employees and managers to log and approve hours.

Justworks Time Tracking helps businesses track employee time without the heavy administrative burden. Employees clock in and out in the app, while automated break reminders and overtime alerts help you stay compliant with local labor laws.

At the end of a pay cycle, managers can review timesheets and make adjustments directly in the app. Since Justworks Time Tracking integrates with Justworks Payroll, you can process payment automatically without the manual data entry.

Explore Justworks Time Tracking today to see how digital timesheets can support your business.

FAQ

What Common Mistakes Should Employees Avoid When Filling Out a Timesheet?

When filling out a timesheet, employees should avoid padding or under-reporting their hours. Failing to report breaks and overtime are also common mistakes. 

What Happens If an Employee Forgets To Submit a Timesheet? 

If an employee forgets to submit a timesheet, they should alert their manager immediately. The employer still needs to calculate how many hours they worked and pay them on time. 

How Long Should Employers Keep Employee Timesheets?

Employers should keep employee timesheets for at least seven years to comply with federal and state labor laws.