What wage-and-hour records must we track? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

What wage-and-hour records must we track?

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in Small Business Tax Deduction Strategies

Q. What are my responsibilities as an employer for maintaining employees’ wage records?

A. The Fair Labor Standards Act sets requirements for what records an employer covered by the act must keep. For nonexempt employees, you must maintain:

  1. Employee’s full name and Social Security number
  2. Address, including ZIP code
  3. Birth date, if younger than 19
  4. Sex and occupation
  5. Time and day of week the workweek begins
  6. Hours worked each day
  7. Total hours worked each workweek
  8. Basis on which employee’s wages are paid (e.g., “$9 per hour,” “$440 a week,” “piecework”)
  9. Regular hourly pay rate
  10. Total daily or weekly straight-time earnings
  11. Total overtime earnings for the workweek
  12. Additions to or deductions from employee’s wages
  13. Total wages paid each pay period
  14. Date of payment and the pay period covered by the payment.

For exempt employees, you must keep the records for 1 through 5 as well as 13 and 14. Additionally, for exempt employees, employers must also keep a record of the basis on which wages are paid. The records must be sufficiently detailed to permit calculation for each pay period of the employee’s total compensation.

Payroll records must be kept for three years. Records on which wage computations are based—time cards, wage-rate tables, work and time schedules and records of additions to or deductions from wages—must be kept for two years.

There is no particular form in which the records must be kept, as long as they are maintained and are available for inspection at the request of the U.S. Department of Labor.

Ohio has its own record-keeping requirements, but an employer’s compliance with the federal standards should keep you compliant with Ohio’s standards.

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