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June 17, 2011

Online Time Clock MTS and Payroll Time Rounding

The Display and Report Settings Tab
The Display and Report Settings Tab - Click to Enlarge

One of the more common questions I've got in the last few months is from people wondering exactly how Online Time Clock MTS handles payroll time rounding. So here's a quick run through on time rounding in Online Time Clock MTS.

Turning Time Rounding On

Time rounding is turned on by the Online Time Clock MTS account administrator on the Tools->Time Clock Options->Display and Report Settings page. Select a value from the Time Rounding drop down box of 6, 15, or 30 minutes. If you do not want to use report time rounding then leave the selection at None.

How Exactly Does the Rounding Work?

If you've got Time Rounding turned on then Online Time Clock MTS will round times at report time only. These rounded values will be used to calculate all time totals and payroll figures at report time too.

The rounding method used by Online Time Clock MTS is just normal arithmetic rounding. Let's consider an example where the time rounding interval is set to 15 minutes and your typical employee clock in time is 8:30:00AM. Any clock in before 8:37:30AM will be rounded down to 8:30:00AM. Any clock in on or after 8:37:30AM will be rounded up to 8:45:00AM.

Does Rounding Affect the Stored Time Data

No it most definitely does not. Rounding calculations are applied at report time only. The actual raw clock in and out times are still stored by Online Time Clock MTS accurate to the second that they were initially recorded. If you wanted to check this you could just turn off time rounding temporarily and run your reports and you'll see all of the un-rounded data in the report.

Why Time Rounding Might Be Used

The first and most obvious reason is that Time Rounding just makes things simpler and easier to understand. Time Rounding could also be used in your workplace to comply with either your particular workplace payroll rules or perhaps to adhere to government payroll regulations. It might be used to implement a minimum overtime rule and prevent employees accumulating tiny amounts of overtime by clocking in fractionally too early or clocking out a little too late. It also gives your workplace some flexibility with clock in times, if you've got multiple employees they obviously cannot all clock in at once nor can the punch out all at the same time. Some localities allow for this sort of rounding in the work place.

A Warning

Payroll rounding should always be used with caution and you should check with your local regulators to make sure that it is legal.

Posted by markn at June 17, 2011 11:04 AM