Small Business
Xero and TSheets Partner for Small Biz FLSA Compliance
Under the FLSA, employers are required to keep accurate timesheets for overtime-eligible employees for at least two years. Without easily accessible records, it’s very hard to defend against wage and hours disputes in a court of law.
Aug. 18, 2016
Xero and TSheets have increased their partnership to help small business owners avoid the regulatory challenges associated with changes to the Fair Labor Standards Act (FLSA). The new integration will enable small business owners to calculate, with down-to-the-second accuracy, how much each employee should be paid when running payroll. Xero is a maker of online accounting software for small business, and TSheets is a cloud-based scheduling and time tracking software.
“New labor regulations can feel like a minefield to small business owners who are unsure of how to navigate the changes,” said Russ Fujioka, President, Xero Americas. “With wage and hour lawsuits up 456 percent in the last decade, and almost 80 percent of disputes resulting from unpaid overtime, there is an obvious problem. Together TSheets and Xero are improving systems of record through the payroll process and eliminating costly errors created by manual data entry to keep small business owners in the clear.”
“When you look at the top five industries at risk for wage and hour lawsuits — Accommodation/ Food Services, Healthcare, Retail, Construction, and Manufacturing — it’s not coincidental that those are some of the industries that benefit most from automated time tracking for payroll,” said Matt Rissell, CEO of TSheets. “There are millions of hourly and improperly classified salaried employees in those industries, which results in massive potential for mismanaged overtime, payroll mistakes, and other costly FLSA errors. TSheets with Xero gives you accurate payroll, a complete audit trail, and overtime management tools to keep you informed, organized, and ahead of potential disputes; allowing you to stay aligned with your team and focused on the real work — building your company.”
Keeping up with the FLSA
Under the FLSA, employers are required to keep accurate timesheets for overtime-eligible employees for at least two years. Without easily accessible records, it’s very hard to defend against wage and hours disputes in a court of law. The integration of TSheets and Xero can lessen the burden that this puts on small business owners by guaranteeing fewer data entry inaccuracies and offering increased transparency to employees throughout the process.
First, track time with TSheets: TSheets will store all online timesheets securely with 24/7 access for both employers and employees. TSheets also allows employees to track their breaks and overtime and to edit their timesheets as needed — with a time-stamped audit log of every change and approval that’s made. Easily export approved time from TSheets to Xero in a single click.
Next, run payroll with Xero: Xero eliminates hours spent on manual data entry and calculations, seamlessly linking payroll with the accounting functions. Aligning payroll and accounting allows small business owners to pay employees and manage appropriate taxes. Xero also provides employees the capabilities to view pay stubs, enter hours, submit time off requests and more – whenever they like.
Join Xero, TSheets and leading wage and hour attorney, Maria O. Hart of Parsons, Behle, & Latimer, for a free webinar on August 30, 2016 to discuss the immediate steps you can take to avoid a costly FLSA lawsuit. Plus, learn more about how the TSheets and Xero integration play a part in managing overtime and protecting your business. Xero also strongly recommends you work with a licensed professional to help you understand your obligations in labor law and payroll tax accounting.