Prevent time-tracking compliance from becoming a detrimental time-management burden
In the fast-paced world of federal contracting, adhering to complex labor laws and maintaining operational efficiency are paramount. A reliable time management system is essential for federal contractors, offering a combination of DCAA-compliant features, integration with existing enterprise tools, and real-time labor cost tracking with user-friendly interfaces and audit-ready reporting.
One of the key features of a robust time management system is accurate and timely time entry. The system should enforce daily or real-time timekeeping with automated reminders to employees to prevent late or missing timesheets, ensuring compliance with DCAA requirements for timely records.
Another crucial aspect is an audit trail and transparency. Detailed logs of timesheet entries with usernames, timestamps, and IP addresses provide full traceability for audits, making it easier to pass DCAA and other government compliance reviews.
The system must also allow users to track and separate direct (billable) and indirect (non-billable) labor, with the ability to apply proper charge codes for General & Administrative (G&A), overhead, etc. This feature ensures accurate financial records and compliance.
Seamless integration with tools like Microsoft Outlook, Teams, QuickBooks, or ADP streamlines time entry, approvals, and payroll processing, reducing administrative burden and errors in financial reconciliation. Automated approvals and validation further speed up processing time and help maintain compliance.
Real-time labor cost visibility and budget control are also essential. Managers should have dashboards and alerts to monitor labor costs versus project budgets in real time, helping avoid overruns and enabling resource alignment with work schedules.
Mobile and remote access are critical for contractors with remote or dispersed teams. Employees can log hours from any location, ensuring accurate and timely entries no matter where work occurs.
The system should support storing records for the legally required period (e.g., 3 years under FLSA) and incorporate features like GPS tracking if necessary for location verification. A user-friendly interface simplifies time entry, minimizing data entry time and improving user adoption, helping to reduce late timesheets and payroll delays.
In California, close hour tracking, a clear delineation between working and non-working windows, and daily overtime rules are essential. Non-exempt workers must be paid on an overtime basis for hours worked beyond 40 in a workweek. Federal Acquisition Regulation (FAR) and DCAA standards mandate contractors to keep detailed and auditable records for labor hours and labor costs.
A Preaward DCAA System Audit is conducted by DCAA to ensure a contractor's accounting system is adequate for managing cost-type contracts. The audit evaluates whether the timekeeping system can accurately record labor hours by project, including for exempt employees.
Equipping contractors with real-time insights into their workforce enables continuous data-powered decision-making. Real-time insights into the workforce are crucial, allowing for instant overview and calculations of labor costs, project status, and workforce productivity.
Efficient time management is not just an operational requirement but also a compliance one in government contracting. Federal contracting agencies require adherence to overtime provisions in the Fair Labor Standards Act (FLSA) and Contract Work Hours and Safety Standards Act (CWHSSA).
A system that integrates seamlessly with payroll, accounting, project management, and human resources information systems is desirable. A robust time management system improves accuracy, productivity, and overall operational efficiency, unlocking automation capabilities across various functions.
- The reimagined workforce in the federal workforce must adhere to complex labor laws such as the Fair Labor Standards Act (FLSA) and the Contract Work Hours and Safety Standards Act (CWHSSA), thereby requiring a robust time management system for accurate and auditable records of labor hours.
- To ensure compliance and operational efficiency in a federal contracting business, it's essential to invest in a time management system that integrates with finance tools like QuickBooks, offers technology features for real-time labor cost visibility, and maintains an auditable trail for federal workforce operations.
