Time tracking for government contractors

Everhour supports controlled team time tracking, while government contractors need daily labor records tied to cost objectives.

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Enter your time in and out for each day. Overtime and gross pay are calculated automatically.

Employee Time Card
DayTime InBreak Start
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Break
Time OutTotal
Total hours0:00
Regular0:00
Overtime0:00
Double OT0:00
Total hours0:00
Regular0:00
Overtime0:00
Double OT0:00
Total gross pay
Regular pay
Overtime pay
Double OT pay
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Date

Everhour does it all — track, budget, report & invoice

The calculator gives you the number — Everhour takes it from there.

Go ahead — start tracking!

One click and you're timing. Start a timer, add an entry, edit the details. This is exactly how it feels in Everhour.

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Works with your favorite tool:
Everhour — Time Tracking
Time Entries
01:24:00
00:31:00
01:07:00

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Set a budget, assign rates, and get alerted before you're over.

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Everhour — Budgeting
Acme Web Project
1
50% of budget used
$2,500.00of $5,000.00
$2,500.00 remaining
75%
Actual costRemaining cost

Measurement

Track your budget through time or costs

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Everhour — Reports

Your invoice is ready!

Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.

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Everhour — Invoices
Your Company LLChello@yourcompany.com
INVOICE
Invoice #1042
Group by:
DescriptionHoursRateAmount
Website Redesign14h$150/h$2,100.00
Brand Guidelines7h$150/h$1,050.00
Marketing Strategy3.5h$150/h$525.00
Total Due$3,675.00
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Contract time records that stand up to review

Daily records for contract labor

Government contractors track time to show where labor was performed, which contract or task received the work, and whether the cost belongs in a direct or indirect pool. A usable entry names the employee, date, hours worked, project or contract identifier, task or delivery order, labor category, and cost objective. Daily entry matters because DCAA guidance says employees should record time on a timesheet daily.

A contractor supporting a help desk contract may record 6 hours to a direct contract task, 1 hour to internal training, and 1 hour to paid administration. That split protects billing, payroll, and indirect cost treatment. For FAR time-and-materials and labor-hour contracts, labor payment uses the contract hourly rate multiplied by direct labor hours performed, so vague weekly totals do not give finance enough support.

Cost objectives and labor categories

A cost objective is the contract, task, delivery order, activity, or other target that receives the labor cost. For DoD contracts using DFARS 252.242-7006, an acceptable accounting system includes timekeeping that identifies employee labor by intermediate or final cost objectives. That requirement turns time tracking into cost accounting, not a simple attendance log.

Labor category also matters because the billed or claimed rate often depends on the category assigned to the work. A senior analyst and a junior technician may work on the same contract, but their hours need separate treatment if the contract prices them differently. Direct and indirect labor must land in the right place so invoices, incurred-cost work, and internal profitability reports use the same source record.

Mistakes that weaken contractor records

The most common contractor mistake is allowing employees to choose from unclear project names. A task labeled "client work" or "support" leaves accounting to interpret the charge later. Employees need project numbers, contract names or numbers, task descriptions, and assignment identifiers before work begins so daily entries match the cost objective without guesswork.

Corrections need the same discipline. DCAA guidance says timesheet changes should show the original time charge, the corrected time charge, and employee concurrence. A manager changing a timesheet without that record creates a weak audit trail. All hours worked should also be recorded, paid or unpaid, because total hours affect labor rate computations and labor overhead costs, including uncompensated overtime.

Free totals versus controlled workflow

A one-off weekly total is enough for a quick internal estimate or a small pre-award planning exercise. Government contract work needs a managed workflow once hours feed invoices, payroll, labor distribution, incurred-cost support, or monthly cost reporting. DFARS accounting-system criteria include interim determination of costs charged to a contract through routine posting of books of account at least monthly.

Everhour fits the controlled workflow when teams need roles, project assignments, approval steps, locked periods, and admin correction rules around time entries. The goal is a durable record: employees enter daily time, managers review submissions, approved periods stay protected, and finance receives labor data that already carries the project and team structure needed for billing or payroll handoff.

This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.

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Frequently Asked Questions

How should government contractors structure daily time entries?

A useful contractor time entry should identify the employee, work date, hours worked, project or contract identifier, task or delivery order, labor category, and cost objective. DCAA guidance says employees should record time daily, and project numbers, contract names or numbers, and assignment descriptions help distribute labor accurately without after-the-fact interpretation.

Why do cost objectives matter in contractor timekeeping?

Cost objectives tell accounting where labor belongs. For DoD contracts using DFARS 252.242-7006, an acceptable accounting system includes timekeeping that identifies labor by intermediate or final cost objectives. That structure supports direct and indirect labor distribution, billing, payroll, and later review of costs charged to each contract.

Should unpaid extra hours be recorded on a government contract?

Yes. DCAA guidance says all hours worked should be recorded, paid or unpaid, because total hours affect labor rate computations and labor overhead costs, including uncompensated overtime. Separately, covered nonexempt employees must receive FLSA overtime pay for hours worked over 40 in a fixed 168-hour workweek at not less than 1.5 times the regular rate.

Can time-and-materials vouchers rely on summary hours?

Summary hours alone create weak support. For FAR time-and-materials and labor-hour contracts, labor payment equals the contract hourly rate multiplied by the number of direct labor hours performed, and vouchers can be substantiated with individual daily job timekeeping records. Daily entries tied to the right contract and task give the voucher a clearer source.

Which contractor time records need retention planning?

FAR contractor-record rules require clock cards or other time and attendance cards to be retained for 2 years. Payroll sheets, registers, or equivalent salary and wage records must be retained for 4 years. Separate FLSA rules require payroll records for at least 3 years and basic time and earnings records for at least 2 years.

How does Everhour Team Management support government contractor time controls?

Everhour Team Management lets admins set roles, project assignments, team groups, weekly capacity, lock rules, and approval workflows around submitted time. Managers can review entries before billing or payroll use, and admins can correct time for team members when records need cleanup without losing control of the workflow.

How can Everhour Reporting support contract labor review?

Everhour Reporting turns logged time, budgets, costs, and project data into configurable reports with columns for task, project, client, member, billable time, labor costs, and budget metrics. Teams can export reports as CSV, Excel/XLSX, or PDF for spreadsheet review, client sharing, or archive needs.

Control contract labor records

Use Everhour Team Management to assign projects, approve timesheets, lock completed periods, and correct entries before labor data reaches billing or payroll. Everhour gives contractor teams cleaner time controls.

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