What does 'timekeeping' refer to in relation to payroll?

Timekeeping refers to the process of tracking employee hours worked. This is a crucial aspect of payroll as it directly influences how much employees are compensated for their work. Accurate timekeeping ensures that employees are paid correctly for the hours they have put in, whether it involves regular hours, overtime, or any other formatting that affects pay.

While the tracking of employee performance can be important in evaluating work quality, it does not relate directly to the specific function of payroll. Similarly, calculating payroll taxes and scheduling paydays are important payroll functions but are distinct from the concept of timekeeping. Timekeeping focuses specifically on recording and verifying the amount of time employees have worked, which is foundational for any payroll processing.