Vision Payroll

As previously described, the US Department of Labor (DOL) has launched its “DOL-Timesheet” smartphone application designed specifically to allow employees to track their daily hours worked. The app marks another step in the DOL’s strategic “Plan/Prevent/Protect” initiative of increased workplace compliance enforcement efforts. This app serves as a reminder to employers to make sure that their systems and processes accurately account for employees’ hours worked.

As more and more employees become familiar with, and start to utilize,  the DOL’s timesheet app, they may become more likely to file wage and hour grievances with the DOL. For employers, an important protection against employee grievance filings is making sure that your business satifies its obligations under the federal Fair Labor Standards Act (FLSA).

Challenges

• Discrepancies between employer’s and employee’s records
• Employee manipulation of records for more pay
• Absence of employer records used as a basis for wage claims

Immediate Actions to Take

• Require employees and their supervisors to verify (with signatures) the accuracy of time records
• Review/update relevant employee handbook policies
• Make sure timekeeping systems are accurate and consistent
• Regularly audit the company’s time records

Learn More About the DOL Free Smartphone App for Your Employees

To get more details about the DOL free smartphone App for your employees, be sure to read the featured article by the HR pros at MyHRSupportCenter, The US DOL’s Free Smartphone App…Made for Your Employees, Part II. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

On May 9, 2011, the US Department of Labor (DOL) announced the launch of its first smartphone application, the “DOL-Timesheet” designed specifically for employees. In a DOL news release that same day, Secretary of Labor Hilda Solis stated that by leveraging “increasingly popular and available technology …this app will help empower workers to understand and stand up for their rights when employers have denied their hard-earned pay.” However, this tool can be problematic for small to mid-sized businesses. Employers need to take extra caution to ensure that employees are absolutely paid correctly, complaints are handled effectively, and recordkeeping is maintained accurately.

DOL Timesheet Currently Available for iPhone and iPod Touch

The free app is currently compatible with the iPhone and iPod Touch. The Labor Department will explore updates that could enable similar versions for other smartphone platforms, such as Android and BlackBerry, and other pay features not currently provided for, such as tips, commissions, bonuses, deductions, holiday pay, pay for weekends, shift differentials and pay for regular days of rest.

Learn More About the DOL Free Smartphone App for Your Employees

To find get more details about the DOL free smartphone App for our employees, be sure to read the featured article by the HR pros at MyHRSupportCenter, The US DOL’s Free Smartphone App…Made for Your Employees, Part I. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

In Notice 2009-46, Substantiating Business Use of Employer Provided Cell Phones, the Internal Revenue Service requested comments from the public on several proposals for simplifying employer documentation of an employee’s business use of an employer-provided cell phone. For this purpose, the term “cell phone” includes similar telecommunications devices such as iPhones, Blackberries, and Windows Mobile Devices. An employee’s business use of an employer-provided cell phone is excludible from the employee’s income, but the fair market value of any personal use is includible in the employee’s taxable income.

The IRS is considering three methods for an employer to use to value such use of a cell phone. First is the “Minimal Personal Use Method” which might require an employee to establish use of a personal cell phone for personal use during business hours or a showing that the business cell phone was used for less than a certain established limit for personal use. Secondly, the “Safe Harbor Substantiation Method” would require a certain amount, such as seventy-five percent (75%), to be treated as business use. Finally, under the “Statistical Sampling Method”, an employer could use a statistical sampling method (subject to IRS approval) to determine an average employee business use percentage.

The IRS is also looking for a method to value the employee’s personal use for tax purposes. The IRS states that the employer’s cost “is not determinative of the fair market value of an employee’s fringe benefit.”

Notice 2009-46 provides further details on how employers may comment on the proposals and lists a deadline of September 4, 2009. Contact Vision Payroll if you have any questions on Notice 2009-46.