Timesheet Policy

Term Definition
A timesheet policy is a set of rules, procedures and guidelines established by organizations in accordance with applicable federal and local laws, which govern the responsibility of the Employee, Supervisor, and Department Director for the accurate completion, submission and review of all time sheets.

Timesheets are a legal document, which are the source of payroll transactions, and are related to a project, customer invoicing. Timesheets serve as the legal authority to pay an employee. They also serve as a verification of time off, and provide the legal basis to grant an employee benefits, including workers' compensation as appropriate.

Timesheet policies may address how and when time is reported, as well as the certification, review and verification procedures. For example, the timesheet policy might require that time worked be reported accurately on the date that such work was performed. Time off would similarly be reported on the date that the time is taken. Employees might be required to physically sign a timesheet, punch in using time clock, online timesheet or web-based timesheet. The timesheet policy may also address how timesheets are handled in the event that the employee cannot complete the necessary action, as in the case of absence or illness.

Timesheet policies would define the guidelines for review, certification and verification of the time reported. This would encompass the employee, supervisors and possibly department heads. There could be different timesheet policies for exempt and non-exempt employees. Some organizations might have procedures around “confidential” employees, which would typically be management level employees.

The timesheet policy would also address accurate reporting, fraud and the process for correcting errors. Timesheets should represent an accurate and true report of hours worked and hours taken in accordance with an organization's leave policy. In any organization, an intentional misrepresentation of hours worked constitutes fraud and will usually result in disciplinary action or possibly termination of employment.

Area of Application
Corporate Governance
Workforce Management

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