Defense Contract Audit Agency timekeeping requirements that help ensure federal contract work is properly tracked and taxpayer money is used appropriately. DCAA compliance mandates daily time entry, no time rounding, comprehensive documentation, and audit trails for all corrections.
The Defense Contract Audit Agency (DCAA) sets strict timekeeping requirements that help ensure taxpayer money is used appropriately. If your business works on federal contracts, DCAA-compliant time tracking is mandatory.
Time must be entered daily - logging hours at the end of the week isn't allowed. Entries must be made each day to reflect work as it happens.
DCAA-compliant timekeeping does not permit the rounding of time. All hours and minutes must be recorded accurately, reflecting actual time worked, and cannot be rounded up or down.
DCAA timesheet rules require comprehensive documentation for all time entries, including:
Any corrections must be documented, including:
All timesheets, payroll records, and related documents must be securely stored and easily accessible for a minimum of three years.
Every employee must complete their own timesheet each day with an accurate record of their hours.
The time tracking system must meet federal IT security standards with:
Falling short of DCAA compliance standards can lead to:
Government contractors must implement time tracking systems that support these requirements, including software that prevents retroactive changes without audit trails and enforces daily time entry policies.
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