How to Prevent Timesheet Errors Before Payroll

A timesheet error is one of the most common payroll mistakes a small employer faces, and it almost always shows up as a wrong hours total on payday. One missed clock out, a break rounded the wrong way, or hours copied from the prior pay period can turn a clean run into a correction. The good news is that most timesheet errors follow the same small set of causes, which means a few steady habits catch them before payroll starts.

This guide walks through how to prevent timesheet errors before payroll, from the way you collect hours to the prepay review that catches the ones that slip through. If you are newer to payroll altogether, it helps to start with our guide on payroll processing basics before you dig into timesheet habits. For a fuller look at the mistakes that show up alongside timesheet errors, see our guide on common payroll mistakes.

What Is a Timesheet Error

A timesheet error is any wrong hours total, break, or time entry that feeds into the payroll run. It happens when an employee forgets to clock out, a break is rounded the wrong way, hours are copied from the wrong pay period, or a time entry lands in the wrong field, so the run pays the wrong amount of time. The error can run in either direction. A missed clock out can overpay, and a missed clock in can underpay, which is why the hours on the timesheet need to match the hours the employee actually worked.

Every hours total has a source. Hours come from a time clock, a signed timesheet, or an approved time entry. When the entry and the source stop matching, the run comes out wrong. The correction is always the same, which is confirming the right hours against the source, fixing the entry, and rerunning the affected line so the records stay easy to trace.

Common Causes of Timesheet Errors

Most timesheet errors come from a small set of causes. Knowing them helps you find the error fast and fix the right thing instead of the symptom.

• Missed clock in or clock out. An employee forgets to clock in or out for a shift, so the hours total runs high or low and the gross pay comes out wrong even when the rate is right.
• Breaks rounded the wrong way. A break is missed, added twice, or rounded the wrong way, so the paid hours do not match the hours the employee actually worked.
• Hours copied from the wrong week. An hours total is copied from the prior pay period or the wrong employee, so the run pays time the employee did not work.
• Time entries in the wrong field. A regular hours entry lands in the overtime field, or a training shift lands in regular hours, so the run totals come out wrong and the overtime costs drift.
• Stale or unapproved time. A time entry is left in the run after it should have been corrected, or an unapproved entry slips through, so the hours run off the wrong total instead of the approved one.

Each of these causes shares one root, which is a gap between the source and the entry. For a closer look at how the wrong entry reaches the run in the first place, see our guide on how to prevent payroll data entry errors.

Stop Errors at the Source

The cleanest correction is the one you never have to make, which is why the way you collect hours matters before the run starts. Collect hours from a clean source, such as a time clock or a signed timesheet, and train employees to clock in and out for every shift and every break. Remind them to review their hours before the pay period closes so a missed entry shows up while there is still time to fix it.

Treat the source as the single place the right hours live. A time clock records the actual punches, and a signed timesheet confirms the employee agrees the hours are right. When you enter from the source and confirm the entry against it, a missed clock out or a copied total shows up before the run instead of after payday.

Catch Errors Before Payday

Even with a clean source, a timesheet error can still slip through, which is why the prepay review matters. Run it before pay goes out, and pull the timesheet totals for the whole pay period on one page. Confirm the hours for each employee against the time clock or the signed timesheet, then confirm the total hours match the amount scheduled to go into the run.

Watch the entries that go wrong most often. Hours that jump without a reason, a total that drifts from the prior period, or a break that does not match the schedule are all signs the entry and the source have drifted apart. An error caught before payday is fixed by correcting the entry, which avoids a correction on the next run and keeps the records clean from the start.

Example: A Cafe Catches a Wrong Hours Total

Consider a small cafe with hourly employees paid biweekly. During the prepay review, the owner notices one employee's hours total looks too high for the period. The owner checks the time clock and finds the employee forgot to clock out for one shift, so the time clock counted hours the employee did not work.

The owner pulls the signed timesheet, confirms the actual hours with the employee, corrects the hours total, and reruns the affected line. Because pay has not gone out yet, the owner fixes the entry before the deposit leaves the bank account, tells the employee about the corrected hours, and keeps the timesheet and a short note about the missed clock out with the payroll records. The example shows how a wrong hours total turns into a clean correction when you collect from a clean source and review the totals before payday.

Example: A Shop Catches a Missed Clock Out

Take a small retail shop with a mix of hourly and salaried staff paid semimonthly. During the prepay review, the owner notices one hourly employee's hours total is much higher than their usual schedule. The owner checks the time clock and finds the employee missed a clock out on a short shift, so the entry ran overnight and added hours the employee did not work.

The owner pulls the schedule, confirms the actual hours with the employee, enters the right total, and reruns the affected line. Because pay has not gone out yet, the owner fixes the entry before the deposit leaves the bank account, tells the employee about the corrected hours, and keeps the schedule and a short note about the missed clock out with the payroll records. For more on what to keep on file, see our guide on payroll records employers should keep. The example shows how a missed clock out is caught by the prepay review and corrected before payday.

How to Prevent the Next Timesheet Error

A correction is cleaner when the next run does not repeat the same timesheet error. The habits below keep the hours entry and the source from drifting apart.

• Collect hours from a clean source, such as a time clock or a signed timesheet, and confirm the entry against it.
• Train employees to clock in and out for every shift and every break, and remind them to review their hours before the pay period closes.
• Run the prepay review every run, including the hours for each employee and the total hours for the period.
• Pull the timesheet totals on one page before pay goes out, and watch for hours that jump without a reason.
• Reconcile the total hours to the time clock every run, and reconcile the month against the time clock records.

Timesheet Error Prevention Checklist

Use this checklist before each pay run so the hours start from a clean source and the prepay review catches the ones that slip through. Work through it in order so the run pays the right amount of time and the records stay easy to trace.

Getting Started

A timesheet error is preventable, and the prevention is cleaner when you collect hours from a clean source, run the prepay review, and confirm the totals before payday. Work through the steps above, and your next run starts from the right hours instead of the last wrong entry.