Accurate timekeeping is one of the most important parts of running payroll, yet it’s also one of the areas where employers most frequently run into problems. Timecard mistakes can lead to payroll errors, employee disputes, and even compliance issues if employees are not properly paid for all hours worked.
For small and mid-sized businesses especially, reviewing timecards carefully before processing payroll can prevent many common issues. Here are some of the biggest timecard errors employers should watch for each pay period.
Missing Clock-Ins or Clock-Outs
One of the most common timecard issues occurs when an employee forgets to clock in or clock out. This results in incomplete time entries that can cause incorrect payroll calculations.
When a punch is missing, someone must manually correct the timecard before payroll can be processed. If the error isn’t caught, it could result in an employee being paid for too many hours—or not enough.
Employers should make sure supervisors review timecards for missing punches before approving them.
Unapproved Overtime
Overtime often shows up on timecards without management realizing it until payroll is processed. Under the Fair Labor Standards Act, employers must pay non-exempt employees for all hours worked, including overtime—even if the overtime was not approved in advance.
That means an employer may still be responsible for paying the overtime wages, even if it violates company policy. Reviewing timecards helps employers catch unexpected overtime and address scheduling issues before they become a recurring problem.
Timecards Left Open From Previous Pay Periods
Another common mistake occurs when timecards are not finalized at the end of each pay period. When timecards remain open, employees may accidentally add hours to the wrong payroll period.
This can lead to:
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Hours being paid in the wrong pay period
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Duplicate time entries
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Confusion when reconciling payroll reports
Finalizing or locking timecards each pay period helps keep records accurate and prevents payroll adjustments later.
Duplicate or Overlapping Hours
Sometimes employees accidentally record time more than once. This can happen if an employee clocks in through multiple devices, enters manual time after already clocking in, or works in multiple roles within the same system.
Duplicate entries or overlapping shifts can result in employees being paid for more hours than they actually worked if the error is not caught.
Regular timecard review helps ensure that hours are recorded correctly.
Incorrect Break Entries
Breaks and meal periods are another area where mistakes frequently occur. Employees may forget to record a meal break or accidentally record the wrong amount of time.
While federal law does not require meal or rest breaks, wage and hour rules enforced by the U.S. Department of Labor still require employers to pay employees correctly for all hours worked. Incorrect break entries can also accidentally increase overtime totals.
Employers should make sure their policies for recording breaks are clear and consistently followed.
Buddy Punching
“Buddy punching” occurs when one employee clocks in or out for another employee who is not actually present. This type of timekeeping fraud can increase payroll costs and distort labor records.
Employers can reduce this risk by requiring supervisor approval of timecards and using timekeeping systems that verify employee identity.
Why Timecard Review Matters
Timecards are the foundation of accurate payroll. Even small errors can quickly add up to costly corrections or compliance concerns. By implementing a process where employees submit their timecards, supervisors review them, and payroll verifies them before processing, employers can significantly reduce payroll mistakes.
A few minutes spent reviewing timecards each pay period can save businesses time, money, and frustration later.
This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.
