How to approve timesheets
A complete guide to reviewing and approving employee timesheets for accurate payroll processing. Learn how to spot errors, handle discrepancies, maintain Fair Work compliance, and implement digital approval workflows that save time and prevent costly mistakes.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about approving employee timesheets in Australia. Always consult the relevant Modern Award and Fair Work regulations for your specific situation. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Why timesheet approval matters
Timesheet approval is a critical compliance checkpoint in payroll processing. When you approve a timesheet, you're authorising the business to pay the employee for those hours at the specified rates. Errors at this stage flow directly into payroll, potentially causing underpayments, overpayments, and compliance issues.
Under Fair Work requirements, Australian employers must keep accurate time and wages records for 7 years. Inaccurate timesheets can lead to underpayment claims, overpayments that are difficult to recover, and potential penalties for non-compliance.
Key compliance points
- Approval creates legal authorisation for payment
- Records must be kept for 7 years under Fair Work Act
- Errors can result in penalties up to $93,900 per contravention
- Approved timesheets form evidence in wage disputes
6 steps to timesheet approval
Follow this process to ensure accurate timesheet approvals every pay cycle.
Set a clear timesheet deadline
Establish when timesheets must be submitted and when managers must complete approvals.
Tips:
- Set a submission deadline (e.g., end of day Monday for the previous week)
- Allow managers 1-2 days to review and approve before payroll processing
- Communicate deadlines clearly in your policy and onboarding
- Send automated reminders before deadlines
Compare timesheets to the roster
Review submitted hours against the original scheduled shifts to identify variances. Compare timesheets to the roster.
Tips:
- Check start and finish times match the roster (or have approved changes)
- Identify any unscheduled overtime or additional hours
- Verify break times were taken as required
- Flag any clock-in/out anomalies for investigation
Verify penalty and overtime rates
Ensure hours that attract penalty rates or overtime are correctly categorised.
Tips:
- Check weekend and public holiday hours are flagged correctly
- Verify evening/night loading hours if applicable
- Confirm overtime thresholds are applied per the award
- Review allowances that should be applied to specific shifts
- Use our overtime & penalty rate calculator to verify calculations
Investigate discrepancies
Follow up on any variances or anomalies before approving.
Tips:
- Query early clock-ins or late clock-outs with the employee
- Verify any missed clock-ins have legitimate reasons
- Check for patterns that might indicate time theft or errors
- Document conversations about discrepancies
- Review timesheet dispute evidence practices
Request corrections if needed
Have employees correct errors before final approval rather than editing yourself.
Tips:
- Send timesheets back to employees for correction where possible
- If managers edit, document the change and reason
- Never approve known inaccuracies
- Maintain an audit trail of all changes
- Learn about creating legally defensible timesheet records
Approve and submit to payroll
Complete the approval process and forward accurate timesheets for payment.
Tips:
- Only approve timesheets you believe are accurate
- Your approval authorises payment – take it seriously
- Submit by the payroll deadline to avoid payment delays
- Keep records for at least 7 years as required by Fair Work law
Common timesheet issues
Be alert to these common problems when reviewing timesheets.
Buddy punching
One employee clocks in/out for another
Impact: Payroll fraud; paying for hours not worked
Use biometric or GPS-verified clock-in systems with photo verification
Early clock-ins
Employees clock in before their scheduled start time
Impact: Unbudgeted labour costs; potential overtime triggers
Set clock-in windows; require manager approval for early starts
Missed breaks
Breaks not recorded or not taken
Impact: Compliance issues; employee fatigue; underpayment claims
Automatic break deductions with override options; break reminders. Use our break compliance calculator
Manual entry errors
Typos in times, wrong dates, or missing entries
Impact: Incorrect payments; audit failures
Use digital time clocks; validation rules; comparison to roster. See why payroll errors usually start with bad timesheets
Unapproved overtime
Extra hours worked without prior approval
Impact: Budget overruns; potential exploitation
Clear overtime policy; real-time alerts when thresholds approach
Late submissions
Timesheets submitted after the deadline
Impact: Delayed payments; payroll processing issues
Automated reminders; consequences for repeated lateness. Implement automated timesheet approval workflows
Tips for effective timesheet management
Follow these practices to simplify approvals and maintain compliance.
Use digital timesheets
Replace paper with digital systems that integrate with rosters and payroll for accuracy.
Set approval workflows
Establish who approves whose timesheets and escalation paths for disputes.
Review before the deadline
Don't wait until the last minute – early review allows time to resolve issues.
Document everything
Keep records of approvals, corrections, and any discussions about discrepancies.
Train your managers
Ensure approvers understand awards, penalties, and their compliance obligations.
Audit regularly
Periodically review timesheet patterns to identify errors, fraud, or training needs.
Benefits of digital approval systems
Digital time and attendance systems automate timesheet collection and approval workflows, reducing errors and saving hours on payroll processing.
Manual approval process
- Paper timesheets prone to errors
- Manual comparison to roster
- Chasing managers for signatures
- Re-entering data into payroll
- No audit trail of approvals
- Penalty rate errors
Digital approval workflow
- Automatic timesheet generation from clock-ins
- Side-by-side comparison with roster
- Automated reminders to managers
- One-click export to Xero/MYOB
- Complete audit trail maintained
- Automatic penalty rate calculation
💡 Learn more about digital time tracking:
Read our complete guide on how to implement digital clock-in systems. Also check our guide on timesheet approval workflows for best practices.
Industry-specific approval considerations
Different industries have unique timesheet approval requirements based on their Modern Awards.
Aged Care
Care minute tracking, 24/7 rostering, penalty rates for night shifts, minimum engagement periods
Learn moreChildcare
Educator-to-child ratios, qualification tracking, split shifts, penalty rates for extended hours
Learn moreHospitality
Split shifts, penalty rates for weekends, casual loading, late night penalties, public holiday rates
Learn moreRetail
Weekend penalty rates, public holiday rates, extended trading hours, casual workforce management
Learn moreHealthcare
24/7 operations, shift penalties, on-call allowances, overtime for double shifts, qualification-based rates
Learn moreSecurity
Site-specific rates, overnight penalties, public holiday rates, minimum shift durations, travel time
Learn more💡 Industry-specific rostering guides:
Explore our complete guides on hospitality rostering, aged care rostering, childcare rostering, and retail rostering for industry-specific award requirements.
The cost of timesheet errors
Understanding the financial impact of inaccurate timesheet approvals helps justify investment in better systems.
Missed penalty rates (per week)
5 employees × 8 hours weekend work × $5 penalty shortfall
Weekly cost
$200/week
Annual cost
$10,400
Unapproved overtime (per week)
3 employees × 2 hours × $35/hour
Weekly cost
$210/week
Annual cost
$10,920
Buddy punching time theft
2 employees × 15 minutes/day × 5 days × $25/hour
Weekly cost
$125/week
Annual cost
$6,500
Manual timesheet errors
Admin time fixing errors + payroll corrections
Weekly cost
$100/week
Annual cost
$5,200
Potential underpayment penalties
Fair Work penalties for record-keeping failures
Weekly cost
Variable
Annual cost
Up to $93,900
| Error type | Example scenario | Weekly cost | Annual cost |
|---|---|---|---|
| Missed penalty rates (per week) | 5 employees × 8 hours weekend work × $5 penalty shortfall | $200/week | $10,400 |
| Unapproved overtime (per week) | 3 employees × 2 hours × $35/hour | $210/week | $10,920 |
| Buddy punching time theft | 2 employees × 15 minutes/day × 5 days × $25/hour | $125/week | $6,500 |
| Manual timesheet errors | Admin time fixing errors + payroll corrections | $100/week | $5,200 |
| Potential underpayment penalties | Fair Work penalties for record-keeping failures | Variable | Up to $93,900 |
Calculate your potential savings
Use our payroll cost calculator to estimate how much you could save with accurate timesheet systems.
Assess your underpayment risk
Check your compliance exposure with our underpayment risk calculator and backpay exposure estimator.
How RosterElf simplifies timesheet approvals
RosterElf automates the entire timesheet approval process, from clock-in to payroll export, ensuring accuracy and compliance at every step.
Automated time capture
Staff clock in via mobile GPS or tablet kiosk. Times are automatically recorded with location and optional photo verification.
Learn about time trackingVariance detection
RosterElf automatically compares actual clock-in times against rostered shifts, flagging variances for manager review before approval.
View analytics featuresOne-click approval
Managers review timesheets against rosters, approve accurate entries, and reject discrepancies with notes—all from desktop or mobile.
Setup guidePayroll integration
Approved timesheets export directly to Xero or MYOB with correct award rates applied.
Explore integrationsTime savings: 80% reduction in payroll admin
Businesses using RosterElf's timesheet approval workflow report reducing payroll processing time from 3-4 hours to under 30 minutes per pay run. The system eliminates manual data entry, prevents transcription errors, and maintains complete audit trails for Fair Work compliance.
See how it works →Frequently asked questions
- Typically the direct supervisor or manager who has visibility of the work performed. Large organisations may have a hierarchy: team leader reviews, then manager approves. The approver should have knowledge of the employee's actual work hours. Learn more about timesheets and implement approval workflows.
- Aim to approve within 1-2 business days of submission to allow time for payroll processing. Set clear deadlines aligned with your payroll cycle. For example, if payroll processes on Wednesday, timesheets might be due Monday with approvals complete by Tuesday. Read about payroll cutoff best practices.
- Yes, but with caution. Any manager edits should be documented with the reason. We recommend sending the timesheet back to the employee for correction where possible, creating an audit trail. Never edit to reduce hours without the employee's knowledge and agreement. Understand your obligations for legally defensible timesheets.
- Document your concerns with specific examples. Investigate by comparing patterns, checking with other staff if appropriate, and reviewing any digital records (GPS, CCTV if available). Address concerns directly with the employee. For serious cases, follow your disciplinary procedure. Learn about identifying time theft and using GPS geofencing to prevent time theft.
Streamline timesheet approvals
RosterElf automates timesheet collection and approval workflows, reducing errors and saving hours on payroll processing.
Regulatory sources
This guide is aligned with official Australian workplace regulations.
Related guides
More resources for time and attendance management.
Time & Attendance
Track employee hours accurately with digital timesheets.
Learn moreTrack Employee Hours
Tips for accurate time tracking across your team.
Read guideReconcile Payroll
Ensure timesheet data matches payroll records accurately.
Read guideImplement Digital Clock-In
Set up digital time tracking systems for your business.
Read guide
Stop chasing timesheets
Join thousands of Australian businesses using RosterElf for accurate time tracking and timesheet approval. Built for Australian small businesses.