Time Keeping and Sox Compliance

I am looking for some guidance on exactly what needs to be done regarding timekeeping for exempt employees under SOX.  Currently, we are having everyone fill out time sheets weekly (exempt and non-exempt)  this seems tedious and overkill.  What is really necessary to be doing?  What are other companies doing?  I can't seem to find anything online clarifying this issue for me.

Comments

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  • Sarbanes-Oxley is outside of my area of expertise, but my understanding is that the law requires companies to have the proper internal controls in place. For instance you need to know whether payroll is so out of whack that it affects your financial statements. Therefore you need to have a set of tests and controls in place to make sure employees are paid accruately and that the hours were authorized.
  •  SFBay is right.  SOX does not require you to insitute timekeeping for exempt employees, although some employers do require exempts to keep track of their time.  SOX requires you to have procedures in place to prevent unauthorized payments.
  • We are not subject to SOX, but due to recent changes in the law (Lilly Ledbetter) we are keeping timekeeping and payroll records indefinitely.  We do have our exempt employees complete timesheets.  What if you find out down the road that a certain position should have been classified as non-exempt and you have know way to proved what hours the employee actually worked and whether they are owed any OT?
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