Jim Courtwood
Author of the Time & Attendance Consultant's Guide Series

For payroll professionals, accurate time and attendance data is the foundation of timely, compliant, and stress-free payroll. Yet, many payroll teams spend far too much time correcting errors, chasing approvals, and reconciling incomplete or inconsistent time records. 

These frustrations not only cost businesses time and money—they also open the door to compliance risks. Here are the five most common time and attendance issues that payroll professionals face, and why solving them should be a top priority for any business.
1. Inaccurate or Incomplete Time Records 
When employees forget to clock in or out—or clock each other in (“buddy punching”)—the time data sent to payroll becomes unreliable. Even systems that auto-round time entries can introduce issues if rounding rules are too aggressive or inconsistent. Manual edits by supervisors, if not properly justified or tracked, can also lead to disputes or overpayments. The result? Payroll teams must spend hours investigating and correcting timesheets, increasing the risk of error with each manual change. 
2. Compliance Gaps with Labor Laws and Awards
 In regions with complex labor regulations—such as Australia, where Modern Awards define intricate rules for penalty rates, overtime, and allowances—time and attendance systems must do more than just track hours. They must understand how those hours should be paid. Common compliance issues include: Failure to record and apply paid/unpaid breaks Inaccurate calculation of overtime tiers (daily vs. weekly thresholds) Misapplication of shift loadings and allowances A payroll error caused by an oversight in award interpretation can lead to serious consequences, including Fair Work disputes, back-pay liabilities, and reputational damage.
 3. System Integration Failures
Many businesses still use separate systems for time capture, workforce scheduling, and payroll processing. If these systems don’t talk to each other seamlessly, it results in: Manual exporting and importing of files Formatting mismatches Data lags and syncing errors This manual handling not only slows payroll but also introduces opportunities for human error. In a fast-paced payroll cycle, that’s a risk few businesses can afford. 
4. Human Behavior and User Error
Even the best system can't fix poor process discipline. Time and attendance breakdowns often happen due to: Employees not understanding how to use the system correctly Supervisors failing to review and approve timesheets on time Staff deliberately manipulating clocking practices When payroll is left to clean up these messes at the last minute, it creates stress, delays, and potential inaccuracies. 
5. Weak Reporting and Audit Trails
Payroll professionals need more than just raw clock data. They need transparent, reliable audit trails to validate changes and a robust reporting engine to: Investigate anomalies Track compliance Allocate labor costs correctly Support audits and reporting obligations Unfortunately, many time and attendance platforms fall short in these areas, leaving payroll blind to the "why" behind the numbers. 

Why an Advanced Time and Attendance System Makes the Difference
The root cause behind many of these challenges is simple: businesses often try to manage a complex process using entry-level tools. 

Basic time clocks or low-cost software may seem like a good starting point, but they lack the intelligence and flexibility needed to:

  • Automatically interpret award conditions and penalties
  • Sync seamlessly with payroll systems
  • Track break compliance and overtime thresholds accurately
  • Provide real-time dashboards and proactive alerts
  • Maintain audit trails of every change or exception 

An advanced system does more than track clock-ins—it becomes an active participant in ensuring payroll accuracy and compliance. With configurable rules engines, mobile access for staff and managers, and integration with payroll and HR platforms, modern attendance solutions drastically reduce the manual effort placed on payroll teams. Investing in the right system means fewer headaches, faster processing, improved accuracy and lower risk. It turns payroll from a fire drill into a smooth, predictable process—week after week.


Jim Courtwood

jimc@timeandattendance.com.au

1300 553 254

0437 772 977