What Are the Common Timesheet Errors and How Can You Avoid Them?

A timesheet captures the hours an employee works on a specific task, project, or shift. Businesses use timesheets to track employee hours worked, determine payroll, analyze employee and project productivity, and control project costs. 

Common timesheet errors lead to payroll errors, incomplete or inaccurate records, and wasteful administrative work. Knowing and avoiding these errors helps an organization keep its time records accurate.

What are the Common Timesheet Errors?

1. Failing to Record Work Hours

One of the most common errors in timesheets is failing to record work hours. There are a number of reasons for this. For example, an employee may miss entering his/her start time or end time, break time, or the hours spent on a particular project, etc.

How to avoid it: Timesheet entries should be made on a daily or as-needed basis as opposed to at the end of the week. This, along with other workflow process reminders, can be automated to help employees make timesheet entries on schedule.

2. Recording Inaccurate Work Hours

Employees may enter start and stop times incorrectly or fail to subtract break time from total work hours, resulting in payroll calculation errors.

How to avoid it: Use timesheet software to calculate work hours and breaks automatically and check digitally if timesheet entries are correct.

3. Recording Incorrect Overtime Hours

Recording regular work hours as overtime hours can result in payroll errors and non-compliance.

How to avoid it: Educate your employees and use a timesheet that clearly defines overtime hours.

Avoid it: Create policies on overtime reporting, and show employees how to record it. Managers should review overtime entries before the timesheet is approved.

4. Using the Wrong Project or Task Codes

Employees work on numerous projects and mistakenly code hours worked on a particular project to a different project. This affects the business in tracking costs associated with projects and assessing the allocation of resources to projects.

Avoid it: Create comprehensive project names and consistent task codes. Using pre-defined project options on timesheet systems can eliminate manual entry and increase the accuracy of time tracking.

5. Submitting Timesheets Late

Late submission of timesheets adds to the workload of the HR department, delays the processing of payroll, and disrupts project reporting.

Avoid it: Set a cutoff date for submission of timesheets. Send automatic reminders to employees before the cutoff date. Managers should establish a process to review and approve timesheets.

6. Failing to Review Timesheet Entries

Employees and managers can miss duplicate entries, holes in hours worked, or bizarre work schedules. If not caught, these can affect payroll negatively.

How to Avoid It: Employees should verify their timesheet entries before they are turned in. Managers should check timesheets for inconsistencies.

How Can Businesses Reduce Timesheet Errors?

Businesses can take these steps to make timesheet entries more accurate:

• Utilize digital timesheet software: Automate time calculations.
• Establish clear policies: Explain how to enter regular hours, breaks, overtime, and project time.
• Train employees: Show employees the correct way to fill out timesheets.
• Set submission deadlines: Establish a consistent schedule for timesheet submissions.
• Perform audits: Identify repeating issues.

Conclusion

Incorrect work hours, missed work hours, incorrect overtime, and untimely timesheet submissions affect payroll negatively. Timesheet errors negatively affect business and employee productivity. Having clear policies and training employees can help alleviate timesheet errors. Using digital timesheet software can also help remove the various errors associated with timesheet submissions.

For more information, visit Managetrix.com