How to Compress Your Payroll Cycle in 5 Procedures | EasyClocking by WorkEasy Software

How to Audit Your Time-Capture Pipeline for Payroll-Blocking Gaps

intermediate · 4 hours

This assessment procedure diagnoses the specific data-collection failures that delay timesheet-to-payroll handoff. It is executed by the Payroll or HR Operations lead before each new payroll schedule is established and produces a gap inventory with ranked remediation priorities.

1. Export Time-Entry Logs
Prerequisites
- At least two completed payroll cycles with documented correction logs
- Access to time-tracking system export and payroll system import logs
- List of current time-entry methods by employee group (app, kiosk, paper, manager-entered)
- Defined pay period schedule (weekly, biweekly, semi-monthly)
Pull raw time records for the last two pay periods from the time-tracking system. Flag any entries submitted after the collection deadline. Export the full data set into a format you can sort and filter, such as CSV or a spreadsheet.
Include all fields that indicate when the entry was created, who created or edited it, and which method was used (mobile app, kiosk, biometric clock, paper, manager-entered). Late entries are your first signal of upstream capture problems. If your time-tracking platform from EasyClocking by WorkEasy Software supports export with edit-trail metadata, include that column. The goal is a complete, timestamped record set that you can cross-reference against your payroll collection cutoff.
Expected outcome: A downloaded, sortable file containing every time entry for two pay periods, with submission timestamps and entry-method fields visible for each record.
2. Map Entry Methods by Group
Categorize each employee group by how time is captured. Construction crews on a job site may use biometric clocks; warehouse workers may use a kiosk; remote drivers may use a mobile app; salaried office staff may use a web portal. List every method in use and tag each employee group to its primary method.
Identify which methods produced the highest rate of late or corrected entries. Paper timesheets and manager-entered hours almost always generate more corrections than biometric or mobile punches because they rely on memory and manual transcription. This step surfaces the structural sources of delay, not the individual ones. A single method serving a large group can dominate your correction volume even if its per-employee error rate looks modest.
Expected outcome: A table mapping each employee group to its time-entry method, with correction rates and late-submission rates calculated per method.
3. Quantify Correction Volume
Count the number of manual corrections made per pay period across the entire organization. Include missed-punch additions, supervisor overrides, retroactive approvals, and any entry edited after initial submission. Calculate the average hours your payroll or HR team spent resolving these corrections before payroll could run.
This is the step where cycle-time cost becomes visible. If your team spent four hours on corrections and your target clean-and-lock window is two hours, you have identified a gap equal to half a business day per pay period. Record both the count of corrections and the hours consumed resolving them. A high correction count with low time cost (simple fixes) is a different problem than a low correction count with high time cost (complex escalations).
Expected outcome: A documented correction count per pay period and the total hours consumed resolving those corrections, broken out by correction type.
4. Identify Submission-Deadline Misses
Cross-reference entry timestamps against the payroll collection cutoff. For each employee group and each manager, determine which submissions arrived after the deadline. Calculate the percentage of total entries that were late.
Deadline misses cascade. A single manager who consistently submits approvals after the cutoff forces the payroll team to hold the entire batch. Isolate whether the pattern is individual (one manager, one site) or systemic (an entire entry method or shift pattern). Late submissions from overnight or weekend shifts often indicate that the collection deadline does not account for shift-end timing. Document every miss with the responsible manager, the group affected, and the delay in hours.
Expected outcome: A list of every submission-deadline miss over two pay periods, tagged by manager and employee group, with delay duration in hours.
5. Trace Root Causes
For each high-correction or late-submission group, document whether the cause is a tool gap, a process gap, or a manager-accountability gap.
- Tool gap: Employees lack access to a reliable clock-in method at their work location (no cell signal on a remote job site, no kiosk in a cold-storage facility, gloves preventing fingerprint reads).
- Process gap: The approval workflow does not match the operational schedule (collection deadline falls before the last shift ends, no escalation path for missing punches).
- Manager-accountability gap: The tools and process exist, but a specific manager does not enforce or follow them.
Root-cause classification determines the remediation. Tool gaps require configuration or hardware changes. Process gaps require policy rewrites. Manager gaps require training or escalation consequences.
Expected outcome: Each high-impact gap is classified as tool, process, or manager-accountability, with a written rationale for the classification.
6. Rank Gaps by Cycle-Time Impact
Score each identified gap by the number of hours it adds to the payroll run. A tool gap affecting a 50-person crew that generates corrections consuming two hours per period ranks higher than a manager gap affecting three employees consuming fifteen minutes.
Sort the list from highest to lowest impact. This ranking becomes your remediation priority list. Resist the temptation to fix the easiest gap first. The audit's value is in directing effort to the changes that compress cycle time the most. If two gaps have similar cycle-time costs, prioritize the one with the lower remediation effort.
Expected outcome: A ranked list of gaps sorted by cycle-time cost in hours, with the top three gaps highlighted as immediate remediation targets.
7. Produce a Gap Inventory
Compile findings into a one-page summary listing each gap, its root cause, its cycle-time cost, and the recommended remediation action. Format the inventory as a table with columns for gap description, root-cause type, hours added per period, and recommended fix.
This document is the primary input for every downstream procedure in this hub. The clean-and-lock procedure (P2) uses it to anticipate recurring exception types. The cutoff-setting procedure (P3) uses it to calibrate internal deadlines. EasyClocking by WorkEasy Software delivers this gap inventory as the diagnostic entry point for every cycle-compression engagement, and you can produce the same artifact internally by following the six steps above. Store the inventory alongside your payroll audit file and refresh it quarterly.
Expected outcome: A ranked gap inventory that identifies which time-capture failures are adding the most days to the payroll cycle and what must be fixed before the next run.

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How to Clean and Lock Timesheets Before Payroll Calculation

intermediate · 4-8 hours

This execution procedure resolves every time-entry exception and freezes the record set so payroll calculation can begin without interruption. It is executed by the Payroll Processor or HR Coordinator during the hours following timesheet collection close and produces a verified, locked timesheet file ready for payroll import.

1. Run the Exceptions Report
Prerequisites
- Timesheet collection deadline has passed and the time-tracking system is closed for the period
- Gap inventory from the time-capture audit (P1) identifying recurring exception types
- Escalation contact list for managers whose approvals are required
- Payroll system import template with required field mapping
Generate the time-tracking system's exceptions report to surface all missing punches, unapproved entries, and overtime flags for the closed period. Run the report immediately after the collection deadline passes. Do not wait for managers to self-report issues.
The exceptions report is the single artifact that determines whether you can proceed to payroll calculation or must pause for corrections. If your platform from EasyClocking by WorkEasy Software supports configurable exception rules, confirm that the rules match your current pay policies before generating the report. An outdated overtime threshold or an incorrect rounding rule will produce false exceptions that waste resolution time.
Expected outcome: A complete exceptions report listing every missing punch, unapproved entry, and overtime flag for the current pay period.
2. Triage Exceptions by Severity
Separate exceptions into two buckets:
- Blocking exceptions: These prevent payroll calculation entirely. Missing hours for an employee, unapproved shifts, and unresolved pay-rate conflicts fall here.
- Non-blocking exceptions: These can be noted and corrected post-run without affecting gross pay accuracy. Minor rounding discrepancies and informational overtime flags (where the overtime rate is already correctly applied) fall here.
Triage is not optional. Treating every exception as blocking is what turns a two-hour clean-and-lock window into a full-day ordeal. Your gap inventory from P1 tells you which exception types recur, so you can pre-build triage rules rather than deciding in the moment.
Expected outcome: Two clearly separated exception lists: blocking (must resolve before calculation) and non-blocking (resolve post-run).
3. Escalate Blocking Exceptions Immediately
Contact the responsible manager or employee for each blocking exception via the defined escalation channel. Set a hard resolution deadline. Do not send a batch email and wait. Call, message directly, or use your system's built-in notification to reach the right person.
Blocking exceptions that sit unresolved are the single largest cause of payroll cycle delay for mid-sized employers. Your escalation contact list (a prerequisite for this procedure) should include a backup contact for every manager. If the primary contact does not respond within the defined window, escalate to the backup or to HR leadership. Document every escalation attempt with a timestamp.
Expected outcome: Every blocking exception has been assigned to a responsible party with a documented resolution deadline and escalation path.
4. Apply Standing Rules to Non-Blocking Exceptions
Resolve non-blocking exceptions using pre-approved standing correction rules. Examples include rounding to the nearest quarter-hour per company policy, applying the scheduled shift start/end if a punch is missing but the schedule and supervisor confirm presence, or flagging informational overtime alerts as reviewed.
Standing rules must be documented and approved by HR leadership before the first time you use them. They are not ad hoc decisions. EasyClocking by WorkEasy Software automates many of these standing rules through configurable rounding, overtime, and shift-matching policies, reducing the number of exceptions that require manual judgment. If a non-blocking exception does not match any standing rule, move it to the blocking bucket and escalate.
Expected outcome: All non-blocking exceptions resolved via documented standing rules, with a log entry for each rule applied.
5. Verify Overtime and Compliance Flags
Review all overtime entries against applicable state or contract rules. Confirm that daily overtime (where required by state law), weekly overtime, and any double-time thresholds are correctly calculated. Verify that meal and rest break deductions comply with the applicable jurisdiction's requirements.
This step is a compliance checkpoint, not a calculation step. Your time-tracking system should calculate overtime automatically, but automated calculations are only as accurate as the rules configured behind them. Spot-check entries for employees who worked across multiple states, departments, or cost centers during the period. Cross-jurisdictional workers are the most common source of overtime miscalculation.
Expected outcome: All overtime and compliance flags reviewed and confirmed accurate, with any miscalculations corrected before the timesheet is locked.
6. Reconcile Headcount
Confirm that the number of employees with time records matches the active headcount in the HRIS. Flag any missing records for terminated employees who may still have hours owed, and flag newly onboarded employees who may not yet have time entries in the system.
Headcount mismatches are the most common source of post-run corrections. A terminated employee whose final hours were not entered will require an off-cycle payment. A new hire whose HRIS record was created but whose time-clock enrollment was delayed will show as missing. Check both directions: employees in the HRIS without time records and time records without a matching HRIS profile.
Expected outcome: Time-record headcount matches HRIS active headcount, with discrepancies documented and resolved or flagged for off-cycle handling.
7. Lock the Timesheet Period
Close the pay period in the time-tracking system to prevent further edits. Export the verified file in the payroll system's required import format. Confirm that the exported file passes the payroll system's import validation (field mapping, date formats, employee IDs) before considering the lock complete.
Locking is a one-way action for the current period. Your policy should state clearly that post-lock corrections require a manual off-cycle adjustment, not a re-open of the period. Re-opening a locked period undermines the entire clean-and-lock procedure and introduces the risk of uncontrolled edits contaminating verified data.
Expected outcome: The pay period is locked in the time-tracking system, and a validated export file is ready for payroll import.
8. Log the Clean Time
Record the timestamp at which the locked file was produced. Compare it against the payroll calculation start deadline to track cycle-time performance. This log entry feeds directly into the cycle-close record produced in P5 and the quarterly audit in P1.
Consistent logging is what makes cycle-time compression measurable. Without it, you cannot determine whether process changes are working. Record the start time (when you began running the exceptions report) and the end time (when the lock was confirmed). The difference is your clean-and-lock duration for the period.
Expected outcome: A timestamped log entry documenting the clean-and-lock duration, stored in the payroll audit file for cycle-time benchmarking.

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How to Set and Enforce Payroll Submission Cutoffs

intermediate · 3 hours

This setup procedure establishes the internal deadlines that ensure the employer's payroll file reaches the processor in time to meet the direct-deposit funding window. It produces a written cutoff schedule with enforcement rules and system alerts.

1. Anchor to the Payday
Prerequisites
- Confirmed direct-deposit settlement lead time from the payroll processor
- Federal Reserve ACH operating calendar for the current year
- Company pay schedule (pay frequency and designated paydays)
- Defined approval chain for payroll sign-off before transmission
Start from the confirmed payday and count backward by the processor's required lead time. Standard ACH settlement typically requires two banking days; same-day ACH settlement requires transmission by a same-day cutoff (often late morning Eastern Time). Your processor's written confirmation of lead time is the only reliable source for this number.
Banking days exclude weekends and federal holidays. A Friday payday with standard two-day ACH settlement means the file must be transmitted by end of day Wednesday. A Friday payday falling after a Thursday federal holiday means transmission must happen by end of day Tuesday. Anchor every subsequent cutoff to this transmission deadline.
Expected outcome: A documented transmission deadline for each pay period in the current year, accounting for ACH settlement lead time and federal holidays.
2. Add the Internal Approval Buffer
Subtract the time required for payroll review and approval from the transmission deadline. This buffer covers the period between when the payroll file is ready for review and when it is approved for transmission. Define who must approve (Payroll Manager, Finance Director, or both) and how long the approval chain typically takes.
If your approval chain includes multiple sign-offs, measure the actual elapsed time over the last two pay periods rather than estimating. A two-person approval chain that nominally takes one hour may actually take three hours if one approver is consistently unavailable. Use actual data, not assumptions. The result is your payroll calculation approval cutoff.
Expected outcome: A documented payroll calculation approval cutoff for each pay period, set far enough before the transmission deadline to accommodate the full approval chain.
3. Set the Timesheet Collection Close
Subtract the estimated clean-and-lock time from the calculation approval cutoff to establish when time entry must be closed for the period. Use the clean-and-lock duration from your P2 performance logs. If you have not yet run P2, use a conservative estimate and plan to tighten the window after two measured cycles.
The collection close is the deadline that managers and employees see. It is the most visible cutoff in the schedule and the one most likely to be violated. Set it with enough buffer that a slightly late clean-and-lock still allows on-time approval. EasyClocking by WorkEasy Software surfaces collection-close deadlines directly on employee and manager dashboards, reducing the chance of missed cutoffs caused by email-only notifications.
Expected outcome: A documented timesheet collection close for each pay period, derived from measured clean-and-lock duration and the approval cutoff.
4. Map Cutoffs to a Calendar
Plot all three cutoffs (collection close, approval deadline, transmission deadline) on a recurring calendar for every pay period in the year. Account for every federal holiday that shifts ACH settlement. Use the Federal Reserve's published ACH operating calendar as the authoritative source.
Holiday-adjacent pay periods are where most transmission misses occur. January, May, July, September, November, and December each contain at least one federal holiday that can shift your cutoffs by a full day. Build the calendar once per year and review it at the start of each quarter. Store it in a shared location accessible to every person in the payroll workflow.
Expected outcome: A year-long calendar showing collection close, approval cutoff, and transmission deadline for every pay period, with holiday adjustments marked.
5. Publish the Cutoff Schedule
Distribute the calendar to all managers, HR staff, and payroll processors. Accompany the calendar with a written policy stating that post-cutoff submissions require an off-cycle adjustment run, not a delay to the main payroll. Make it clear that the main payroll batch will not be held for late submissions under any circumstances.
Publication without enforcement is meaningless. The policy must state the consequence of a missed cutoff (off-cycle run charged to the department, manager escalation to HR leadership) and must be signed off by an executive sponsor. Post the schedule in break rooms, on shop floors, and in the time-tracking system's announcement feed, not just in email.
Expected outcome: The cutoff schedule is distributed to all stakeholders, posted in visible locations, and backed by a signed enforcement policy.
6. Configure System Alerts
Set automated reminders in the time-tracking and payroll systems to notify managers 24 hours before collection close and notify the payroll processor a defined interval before the transmission deadline. If your system supports escalation alerts (a second notification to the manager's supervisor if the first is not acknowledged), configure those as well.
System alerts are the enforcement mechanism that makes the published schedule operational. Written policies without automated reminders are routinely ignored within two pay periods. The platform from EasyClocking by WorkEasy Software supports configurable alert schedules tied to pay-period close, giving payroll teams automated enforcement without manual reminder emails.
Expected outcome: Automated system alerts configured and tested for collection close and transmission deadline notifications.
7. Document the Enforcement Policy
Write a one-page policy specifying consequences for missed cutoffs and obtain sign-off from HR leadership. The policy should cover three scenarios: (1) a manager submits time entries after the collection close, (2) a payroll approver does not sign off before the approval cutoff, and (3) the payroll processor misses the transmission deadline.
For each scenario, define the escalation path, the responsible party, and the corrective action (off-cycle run, manager counseling, process review). Store the policy alongside the cutoff calendar. Review both documents at the same quarterly cadence as the time-capture audit in P1.
Expected outcome: A signed, one-page enforcement policy covering all three cutoff-miss scenarios, stored with the cutoff calendar in the payroll audit file.

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How to Transmit Payroll to Meet the Direct-Deposit Funding Window

beginner · 1 hour

This execution procedure submits the approved payroll file to the processor within the cutoff window required for on-time employee payment. It is executed by the Payroll Processor on each transmission day and produces a confirmed processor acknowledgment and a funding-date record.

1. Confirm the Transmission Window
Prerequisites
- Locked, approved payroll file from the calculation and approval step
- Processor login credentials and submission portal access confirmed
- Cutoff time for the current pay period confirmed from the published cutoff schedule (P3)
- ACH calendar verified to confirm no federal holiday falls between transmission and payday
Check the processor's published cutoff time for the current day and confirm the approved payroll file is ready well before that cutoff. Do not assume the cutoff is the same as last period; processors occasionally adjust cutoff times around holidays, system maintenance windows, or year-end processing.
Open the processor's submission portal and verify its status page shows normal operations. If the portal displays a maintenance notice or a modified cutoff time, adjust your schedule immediately. Having the file ready but discovering the portal is down at the cutoff is a preventable failure. Build a habit of checking portal status as the first action on every transmission day.
Expected outcome: The processor's portal is confirmed operational, the cutoff time is verified, and the approved payroll file is staged for upload.
2. Run a Pre-Transmission Audit
Verify the file's total gross pay, employee count, and bank routing numbers against the prior period's transmission record. Flag any variance that exceeds your organization's defined threshold for supervisor review before submitting.
Large variances can indicate a data error (duplicate entries, incorrect pay rates, missing employees) rather than a legitimate change. A sudden spike in gross pay may mean overtime was miscalculated; a drop in employee count may mean terminations were not processed correctly. This check takes only a few minutes and prevents the most costly transmission errors: overpayments that require recovery and underpayments that require off-cycle corrections.
Expected outcome: Total gross pay, employee count, and routing numbers verified against the prior period, with any significant variances reviewed and approved.
3. Submit the Payroll File
Upload or transmit the approved file through the processor's submission portal. Select the correct funding date (payday) and ACH settlement option (standard or expedited same-day). Double-check the funding date before confirming submission. Selecting the wrong date is a common and entirely preventable error.
If your payroll integration with the platform from EasyClocking by WorkEasy Software supports direct API transmission to your processor, confirm the API connection status before initiating the push. File-based uploads should be validated against the processor's import schema before clicking submit. A rejected file at the cutoff deadline is functionally the same as a missed cutoff.
Expected outcome: The payroll file is submitted through the processor's portal with the correct funding date and ACH settlement option selected.
4. Capture the Confirmation Number
Record the processor's confirmation number, submission timestamp, and stated funding date in the payroll log immediately upon receipt. Do not close the browser tab or navigate away from the confirmation screen until all three data points are captured.
The confirmation number is your proof of on-time submission. If a deposit fails to settle and the processor claims the file was received late, the confirmation number and timestamp are your defense. Store this information in both the payroll log and the cycle-close document (P5). Screenshot the confirmation screen as a backup if your processor does not send a confirmation email automatically.
Expected outcome: Confirmation number, submission timestamp, and funding date recorded in the payroll log and backed up with a screenshot or email confirmation.
5. Verify Processor Acknowledgment
Confirm within one hour that the processor's system shows the file as "received and processing." If the status shows "pending" or "error," escalate to the processor's support line immediately, before the cutoff window closes. Do not wait for the status to resolve on its own.
A "pending" status can mean the file is in a validation queue, which may clear, or it may mean a field-level error has stalled processing. You cannot distinguish between these without contacting the processor. Treat any non-confirmed status as an active issue requiring immediate resolution. Every minute spent waiting is a minute closer to a missed cutoff.
Expected outcome: The processor's portal shows the file status as 'received and processing' or equivalent confirmed status, documented in the payroll log.
6. Notify Stakeholders
Send a same-day confirmation to HR leadership and Finance stating the transmission timestamp, the processor confirmation number, and the confirmed employee payday. Keep the notification brief and factual. Include the employee count and total net pay for the run so Finance can anticipate the funding draw.
Stakeholder notification closes the transmission procedure and creates an auditable record that the right people were informed. If a settlement issue arises on payday, the notification email establishes that all parties were aware of the transmission details and the expected funding date. Store a copy in the payroll audit file alongside the confirmation number.
Expected outcome: HR leadership and Finance have received a same-day notification with the transmission timestamp, confirmation number, and confirmed payday.

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How to Verify Direct-Deposit Settlement and Close the Payroll Cycle

beginner · 2 hours

This measurement procedure confirms that all employee direct deposits have settled on the designated payday and produces the cycle-close record used for compliance and continuous improvement. It is executed by the Payroll Manager on payday after every payroll run.

1. Check Settlement Status at Payday Open
Prerequisites
- Processor confirmation number and stated funding date from the transmission step (P4)
- Access to the processor's settlement status portal or bank reconciliation feed
- Prior-period cycle-time benchmark (days from timesheet collection close to payday)
- Employee headcount and total net pay figure from the approved payroll file
Log into the processor's portal or the company's bank reconciliation feed at the start of the business day on payday. Confirm that the ACH batch status shows "settled" or "posted." Do not check too early; ACH batches can show "processing" until mid-morning in the employee's time zone. A check before 9 AM local time may produce a false alarm.
If the batch status does not show "settled" by mid-morning, contact the processor's support line. Do not wait until employees report missing deposits. Proactive verification gives you a head start on resolving any settlement failure before it becomes a payday disruption affecting morale and trust.
Expected outcome: The ACH batch status is confirmed as 'settled' or 'posted' in the processor's portal or bank feed.
2. Reconcile Settled Amount to Approved File
Verify that the total net pay settled matches the approved payroll file total within a rounding tolerance. Flag any discrepancy for immediate investigation. Even small discrepancies can indicate a systemic issue (a rejected individual deposit, a miscoded tax withholding) that will compound if not caught.
Pull the settled total from the bank reconciliation feed and compare it side by side with the approved file total. If your bank feed does not break out the payroll ACH batch as a separate line item, contact your bank to request batch-level reporting. Without this visibility, reconciliation requires individual-level checking, which is not practical for employers with more than a few dozen employees.
Expected outcome: Total net pay settled matches the approved payroll file total, with any discrepancy documented and under investigation.
3. Confirm Employee-Level Posting by Sample
Spot-check direct-deposit postings for a random sample of employees across different banks and pay types. Select employees who use different receiving banks, include both hourly and salaried workers if applicable, and include any employee whose record required a correction during the clean-and-lock procedure (P2).
Batch-level settlement confirmation does not guarantee every individual deposit posted correctly. A single rejected deposit (wrong account number, closed account, bank processing error) will not always reduce the batch total visibly. The spot-check catches individual failures that batch reconciliation misses. Record the results of each spot-check in the cycle-close document.
Expected outcome: A sample of employee-level deposits confirmed as posted correctly, with results documented in the cycle-close record.
4. Document Any Settlement Failures
For any employee whose deposit did not post, record the employee ID, bank, amount, and failure reason. Initiate the processor's reissue procedure promptly after discovering the failure. Do not batch settlement failures for end-of-day processing; each failed deposit is an employee who did not get paid on time.
Common failure reasons include closed or frozen accounts, incorrect routing numbers, and bank-side processing holds. For each failure, determine whether the root cause is a data-entry error in your system (fixable before the next cycle) or a bank-side issue (requiring the employee to update their banking information). Log the root cause for pattern analysis in future audits.
Expected outcome: Every settlement failure documented with employee ID, bank, amount, failure reason, and reissue status.
5. Record Cycle-Time Performance
Calculate the total elapsed time from timesheet collection close (the lock timestamp from P2) to confirmed settlement (today's date). Log this figure against your target cycle time. EasyClocking by WorkEasy Software applies this measurement as the closing step of every payroll cycle engagement, feeding cycle-time data into a quarterly benchmark report for each client.
Cycle-time logging is only useful if it is captured consistently, including on clean runs where no issues occurred. Clean runs establish your baseline; problem runs show you where the baseline broke. Over several periods, this log reveals whether your process changes are compressing or expanding the cycle, and by how much.
Expected outcome: Cycle-time elapsed from collection close to settlement is calculated and logged against the target, ready for quarterly trend analysis.
6. Produce the Cycle-Close Record
Compile the settlement confirmation, the cycle-time measurement, and any exception notes into a single cycle-close document. Store it in the payroll audit file alongside the gap inventory (P1), the locked timesheet export (P2), the cutoff schedule (P3), and the transmission confirmation (P4).
The cycle-close record is your compliance artifact. In a wage-and-hour dispute or a DOL audit, this document proves that deposits settled on time, that exceptions were resolved, and that the payroll cycle ran within defined parameters. It is also the primary input for the quarterly time-capture audit (P1). Skipping this step on a clean run means P1 will lack the baseline data it needs to detect emerging problems.
Expected outcome: A complete cycle-close record filed in the payroll audit archive, containing settlement confirmation, cycle-time measurement, and all exception documentation.

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How to Audit Your Time-Capture Pipeline for Payroll-Blocking Gaps

1. Export Time-Entry Logs

2. Map Entry Methods by Group

3. Quantify Correction Volume

4. Identify Submission-Deadline Misses

5. Trace Root Causes

6. Rank Gaps by Cycle-Time Impact

7. Produce a Gap Inventory

How to Clean and Lock Timesheets Before Payroll Calculation

1. Run the Exceptions Report

2. Triage Exceptions by Severity

3. Escalate Blocking Exceptions Immediately

4. Apply Standing Rules to Non-Blocking Exceptions

5. Verify Overtime and Compliance Flags

6. Reconcile Headcount

7. Lock the Timesheet Period

8. Log the Clean Time

How to Set and Enforce Payroll Submission Cutoffs

1. Anchor to the Payday

2. Add the Internal Approval Buffer

3. Set the Timesheet Collection Close

4. Map Cutoffs to a Calendar

5. Publish the Cutoff Schedule

6. Configure System Alerts

7. Document the Enforcement Policy

How to Transmit Payroll to Meet the Direct-Deposit Funding Window

1. Confirm the Transmission Window

2. Run a Pre-Transmission Audit

3. Submit the Payroll File

4. Capture the Confirmation Number

5. Verify Processor Acknowledgment

6. Notify Stakeholders

How to Verify Direct-Deposit Settlement and Close the Payroll Cycle

1. Check Settlement Status at Payday Open

2. Reconcile Settled Amount to Approved File

3. Confirm Employee-Level Posting by Sample

4. Document Any Settlement Failures

5. Record Cycle-Time Performance

6. Produce the Cycle-Close Record

How These Procedures Connect

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