What is a timecard?
A timecard records the hours an employee works during a pay period. It helps businesses track attendance, calculate wages, and ensure compliance with labor laws. Timecards can be physical punch cards, digital clock-ins, or part of a workforce management system. Homebase payroll reminds employees to log their hours and breaks so you don't have to.
Accurate time tracking is essential for:
- Payroll accuracy – Ensuring employees are paid for the exact hours they work.
- Overtime tracking – Monitoring extra hours to comply with labor laws.
- Labor cost management – Understanding how much time is spent on different tasks.
- Compliance with wage and hour laws – Avoiding penalties for miscalculating employee hours.
How do timecards work?
Employees log their work hours using various methods:
- Manual timecards – Employees write down their hours, but this system is prone to errors.
- Punch clocks – Employees insert a paper card into a machine to stamp their clock-in and clock-out times.
- Digital time-tracking systems – Employees clock in via software, mobile apps, or biometric scanners, which automatically track and store data.
Many businesses now prefer digital timecards like Homebase because they reduce errors, automate calculations, and integrate seamlessly with payroll systems.
Why accurate time tracking matters
Tracking employee hours correctly is crucial for payroll and compliance. Incorrect time records can lead to:
- Payroll disputes – Over- or underpaying employees can cause legal and financial issues.
- Unpaid overtime – Non-exempt employees must be paid for all overtime hours worked.
- Payroll tax miscalculations – Incorrect time records can impact tax withholdings and employer tax obligations.
For businesses struggling with manual tracking, Homebase payroll automates time tracking, overtime calculations, and payroll processing—all in one system.
Simplify payroll and time tracking with Homebase—get started today.
How long should employers keep timecards?
The Fair Labor Standards Act (FLSA) requires employers to keep time records for at least two years. However, some states have stricter record-keeping rules, so it's a good idea to check local regulations. Keeping digital records makes it easy to store and retrieve timecard data when needed.
How Homebase makes time tracking easy
Tracking hours manually can be time-consuming, but Homebase simplifies the process. With Homebase payroll, you can:
- Track hours automatically with digital timecards
- Sync time data directly to payroll for accurate paychecks.
- Monitor overtime and labor costs to stay compliant
- Reduce payroll errors and disputes with real-time time tracking
Sign up for Homebase today and take the guesswork out of time tracking and payroll management.
Related Articles
- What are time cards? And why should small businesses use them?
- Timesheet templates: what every business needs to know
- Clocking In & Clocking Out: Make It Easy on Your Employees