How to approve timesheets
A complete guide to reviewing and approving employee timesheets for accurate payroll processing. Learn how to spot errors, handle discrepancies, and maintain compliance.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about approving employee timesheets in Australia. 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. 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.
Under Fair Work requirements, 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.
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.
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
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
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
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 law
Streamline timesheet approvals
RosterElf automates timesheet collection and approval workflows, reducing errors and saving hours on payroll processing.
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
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
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 <a href="/blog/payroll-errors-bad-timesheets">why payroll errors usually start with bad timesheets</a>
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
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.
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.
- 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.
- Yes, but with caution. Any manager edits should be documented with the reason. We recommend send 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.
- 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.
Regulatory sources
This guide is aligned with official Australian workplace regulations.
Related guides
More resources for time and attendance management.
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