What is a timesheet?

A timesheet is a record that tracks the number of hours an employee works over a specific period—daily, weekly, or per pay cycle. Timesheets typically include clock-in and clock-out times, total hours worked, overtime, and break periods. They’re used by employers to calculate pay, monitor attendance, and ensure compliance with labor laws.

For small business owners, accurate timesheets are essential. They prevent payroll mistakes, provide proof of compliance with wage and hour laws, and support better labor cost management. With Homebase, timesheets are generated automatically from employee time clocks—saving hours of manual work and helping ensure error-free payroll.

What information is included in a timesheet?

A complete timesheet will usually include:

• Employee name and job role
  
• Date of the shift
  
• Clock-in and clock-out times
  
• Breaks (paid or unpaid)
  
• Total hours worked
  
• Overtime hours (if applicable)
  
• Notes or adjustments (e.g., for missed punches)
  

Timesheets may be kept manually on paper, entered in spreadsheets, or managed digitally through time tracking software.

Types of timesheets

There are several types of timesheets depending on the format and industry:

• Manual timesheets: Paper forms or spreadsheets filled in by employees or managers
  
• Digital timesheets: Created and stored by time clock or scheduling software
  
• Weekly, biweekly, or daily formats: Depending on how your business runs payroll
  
• Job-specific or task-based timesheets: Common in industries like construction, consulting, or creative services, where tracking billable hours is important
  

For most hourly teams in restaurants, retail, salons, or services, a weekly or biweekly digital timesheet tied to a schedule is the most efficient choice.

Why timesheets matter for employers

• Accurate payroll processing—Timesheets provide the verified source of truth for how many hours an employee worked, helping you run payroll accurately and avoid overpaying or underpaying staff.
• Labor law compliance—Under the Fair Labor Standards Act (FLSA), employers are required to keep accurate records of hours worked, breaks taken, and overtime earned for non-exempt employees.
• Overtime and scheduling control—Timesheets help identify which employees are regularly working overtime, arriving late, or missing breaks—insights that help you stay compliant and adjust staffing.
• Dispute resolution—If an employee disputes their paycheck or claims missed hours, timesheets provide documented proof of what was worked and paid.
• Audit readiness—Timesheets are often reviewed during tax audits or labor investigations. Accurate, well-maintained records protect your business.

Legal considerations for timesheets

• Federal law (FLSA) requires employers to retain timekeeping records for at least two years.
  
• State laws may require different retention periods or specific formats for time records.
  
• Overtime tracking is essential for employees working more than 40 hours per week (or as defined by state law).
  
• Meal and rest break documentation may be required depending on your location.
  

It’s your responsibility as the employer to ensure that timesheets are accurate and maintained—even if employees forget to clock in or out.

Common timesheet challenges

Without a reliable system in place, businesses often face:

• Missed or inaccurate punches
  
• Buddy punching (employees clocking in for others)
  
• Manual data entry errors
  
• Difficulty reconciling hours with schedules
  
• Time theft or unapproved overtime
  
• Payroll delays due to missing or incomplete records
  

All of these issues can affect your labor costs, team morale, and legal standing.

Best practices for managing timesheets

• Use a digital time clock system to automate entries
  
• Require employee review and approval of hours each pay period
  
• Set manager alerts for missed punches or unexpected overtime
  
• Keep records organized and backed up for audit readiness
  
• Match timesheets to schedules and labor laws to verify compliance
  
• Regularly audit for inconsistencies or patterns of misuse
  

The more streamlined and automated your timesheet process is, the fewer errors and headaches you’ll face.

How Homebase simplifies timesheets

Homebase automatically generates digital timesheets from real-time clock-ins and outs, so you can focus less on paperwork and more on running your business. With Homebase, you can:

• Track employee hours, breaks, and overtime automatically
  
• Flag missed punches, edits, and overtime for review
  
• Approve timesheets in seconds from your desktop or mobile app
  
• Export timesheets directly into payroll
  
• Stay compliant with built-in labor law rules
  
• Store records securely in the cloud for easy access during audits
  

Explore Homebase Timesheets to simplify time tracking, improve payroll accuracy, and give your team a smarter, more transparent way to log every shift.