Question

What is the process that compares total hours of each worker as shown by the attendance record with the hours reflected on the job time records for each employee?

(A) distribute labor costs
(B) pay employees
(C) accrue employer taxes
(D) reconcile hours worked

Answer 1

Reconciling hours worked is the process of comparing an employee's recorded attendance with job time records to ensure accurate payroll and compliance with labor regulations.

Step-by-step explanation:

The process of comparing total hours worked by each worker, as recorded in the attendance records, with the hours documented on job time records is known as reconciling hours worked. This is an essential part of a company's payroll procedures, ensuring that employees are compensated accurately for their time worked. This verification ensures integrity and accuracy in the payroll process by identifying discrepancies between the reported and actual hours worked, which can affect both wages and accrued benefits. In instances where wages are determined by the number of hours worked, as mentioned in the demand and supply analysis of labor markets, this reconciliation process becomes a critical check.

For example, if an employee's attendance record shows 40 hours worked in a week but their job time records indicate 38 hours, the reconciliation process will flag this discrepancy. The employer will then need to investigate and resolve the differences to ensure the employee receives the correct wage, which might be based on an hourly rate such as the $24 per hour scenario described in the reference information. This also ensures compliance with labor regulations and the accurate calculation of benefits or taxes that may depend on the total hours worked.