How to Survive a Department of Labor Audit

In every small business, keeping track of employees' time starts out as a very loose thing. When there are only a few people, the founder can "eyeball" everyone. But as a company grows, tracking employees' time for payroll and other legal requirements becomes more difficult. According to the Fair Labor Standards Act (FLSA), employers must maintain accurate records of the hours each employee works. When that knock on the door comes from the Department of Labor, no small-business owner wants to be without detailed records.

This is why every growing business needs to implement a computer-based, time-tracking system. It will produce more accurate records and feed directly to the company's payroll system. This becomes important for employees who need to track paid time off during the year. Finally, with these records, the company has a better chance of surviving an IRS or Department of Labor audit.

Employee time-tracking solutions for small businesses include Sage, Paychex and Count Me In .

[SageHRMS Blog]

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