How to Navigate DCAA Timekeeping Requirements

27 of April, 2023

If you’re an HR manager or business owner who works with the DCAA, you know just how complicated their rules and regulations can be. One of the most complex issues that comes up is timekeeping, as DCAA requirements are often confusing and difficult to interpret.

Fortunately, with the right approach, you can ensure your timekeeping is compliant with DCAA requirements. That’s why we’ve put together this article: to provide a comprehensive guide on navigation DCAA timekeeping requirements.

With our guide, you’ll know exactly what steps to take to remain in compliance and keep your business running smoothly. You will also see how using time tracking tools can save you a lot of work. Let’s start!

Introducing the DCAA Timekeeping Requirements

The DCAA, or Defense Contract Audit Agency, establishes standards for government contractors and subcontractors to follow when tracking employee work hours. These regulations largely cover two areas: accuracy and consistency. The goal is to make sure contractors are properly tracking employee hours, so they can get paid in a timely manner and accurately report their costs to the government.

Under DCAA regulations, all government contractors must maintain accurate and detailed records of their employees’ work hours on a weekly basis. This includes not only tracking total hours worked, but also ensuring that all activities are properly classified as billable, non-billable or overtime.

Additionally, contractors must have internal processes in place to ensure time records are reviewed regularly for accuracy and completeness before being submitted for payment.

By getting familiar with the key rules of DCAA compliance and implementing effective processes to stay on top of your time tracking requirements, you can ensure that your business is ready for government contracts—and whatever comes next!

Different Types of Timekeeping Systems Used by the DCAA

The DCAA requires certain methods of timekeeping for contractors. It’s important to understand the various timekeeping systems the agency uses in order to ensure compliance. There are three main types of timekeeping in the DCAA: manual, electronic, and hybrid (a mix of manual and electronic). Each system has its own rules and regulations that need to be followed.

Manual Timekeeping System

Manual systems require employees to track their own hours on paper logs or timesheets, which are typically signed off by a supervisor. It is important to keep careful records with this type of system as there is no data storage or backup.

Electronic Timekeeping System

Electronic systems require employees to input their time into an online system. Hours are tracked through either punches on a time clock or by selecting appropriate times for start and end times of day/week/month/etc.

Hybrid Timekeeping System

Hybrid systems use both manual and electronic components combined—often with supervisors entering their own daily data into the electronic system—and help reduce the burden of paperwork that manual systems can require.

Regardless of which type you go with, it’s important to understand the specifics of how each works in order to determine which system best fits your needs while still meeting DCAA regulations.

Steps to Ensure DCAA Compliance for Timekeeping

To ensure that your organization remains compliant with DCAA requirements for timekeeping, you’ll want to take a few steps. First, you’ll need to make sure that all employees are aware of the rules and regulations around their time tracking.

It’s also essential to keep accurate records of all employee worked hours in a secure system. Here are the steps you should take:

Establish Policies & Procedures

You’ll need to establish policies and procedures for how employees keep track of their hours in accordance with DCAA requirements. For example, your policies should include instructions on how to log worked hours, as well as any necessary documentation (like receipts) they may need to provide.

You should also establish clear guidelines on what type of activities are considered acceptable when it comes to clocking in and out. These policies should be communicated to employees via a handbook or other official document.

Track Employee Hours Accurately

You’ll want to use an HR software solution that allows you to track employee hours accurately and securely. Such software can help ensure compliance by providing clear visibility into who is clocking in or out, when they do so, and where they clock in/out from—all of which must be documented according to DCAA requirements.

Monitor Time Records Regularly

Finally, you’ll want to regularly monitor the time records of your employees for accuracy and completeness—and that’s something an HR software can do easily for you. This will help ensure that any missed clock-ins or outs are properly tracked, which is essential for staying compliant with DCAA regulations.

How Sesame Can Help Organizations Comply With DCAA Requirements

Do you need to ensure your organization is compliant with DCAA timekeeping requirements? Sesame is here to help.

The Defense Contract Audit Agency (DCAA) requires that contractors and subcontractors maintain accurate timekeeping records—and that’s definitely easier said than done. It can be time consuming and expensive to manually track employees’ time, and mistakes are easily made. That’s why Sesame is such a great solution.

With Sesame, you can efficiently manage the worked time of your employees and ensure compliance with DCAA rules by:

1. Automatically tracking when your team members clock in and out
2. Recording employee information accurately and securely
3. Generating reports with details like how long an employee worked on a particular task or project
4. Easily integrating payroll systems for seamless payment processes
5. Providing visibility into employees’ worked hours across multiple teams or locations
6. Customizing flexible work policies for individuals or groups of people based on certain parameters
7. Connecting with other systems, including CRMs or project management solutions, to automate the process of recording worked hours
8. And much more!

When you choose Sesame as your HR software, you can rest easy knowing that you have the tools in place to make sure your organization complies with all DCAA requirements while keeping everyone happy—including the auditors!

Conclusion

In conclusion, complying with DCAA timekeeping requirements can seem daunting, but with the right software, it can be done quickly and easily. Sesame’s HR software can help streamline timekeeping processes, ensuring you are collecting the data you need to meet DCAA compliance requirements.

With Sesame, you can have peace of mind knowing your timekeeping data is up to date and accurate, minimizing your risk of non-compliance.