Month-end payroll checklist for a small business
Published · 5 min read
The last days of the month are when small mistakes turn into pay disputes. A missing clock-out, a sick day nobody logged, an hour counted twice. A fixed checklist makes the close calm and quick. Here is one you can use as it is.
1. Set a cut-off date
Pick one day each month when hours are final, and tell the team. After that day, changes need your approval. A clear cut-off stops the endless trickle of late corrections.
2. Find missing and odd punches
Before you add anything up, look for records that cannot be right. Ask the employee while the shift is still fresh in their memory.
- A clock-in with no clock-out
- A shift much longer or much shorter than planned
- Hours worked on a day the person was not scheduled
- Two punches very close together
3. Match hours to the schedule
Compare what people worked with what you planned. A gap is not always a mistake. Someone may have stayed to cover a colleague. But every gap should have a reason you can state in one sentence.
4. Close all time-off requests
Vacation, sick days, reserve duty and unpaid leave must all be approved or declined before you export. A request left open becomes a question at the next pay slip.
5. Check overtime and special rates
Review the overtime hours, and the hours worked at night, on rest days and on holidays. These carry different rates by law or by contract. Confirm the rules with your payroll advisor if anything has changed, then check that the totals look reasonable per person.
6. Export once, to the payroll provider
Send the final hours to whoever prepares the pay slips. Use one file, made once, after the cut-off. Retyping numbers by hand is where most errors come in. KronosTeam can export a CSV with your own pay codes and employee numbers, and it connects directly to QuickBooks Online. A well-kept spreadsheet can do the same job if you check it carefully.
7. Keep the record
Save the approved hours, and a note of any manual change and who made it. If a question comes up months later, you can answer it from the file.
Frequently asked questions
When should I set the cut-off date?
A day or two before payroll is due. That leaves time to fix problems without rushing, and it is early enough that people still remember their shifts.
What if an employee disputes their hours after the cut-off?
Look at the record, listen to the reason, and correct a real mistake in the next payroll if needed. Write down what you changed and why.
Do I need to check every punch by hand?
No. Check the exceptions: missing punches, very long shifts and days with no scheduled shift. A short list is faster than reading everything.