🇦🇺Australia

Manual Timesheet Approval Bottlenecks & Payroll Delays

3 verified sources

Definition

Manual approval workflows create hidden delays. Supervisors are offline or slow to approve; payroll staff chase approvals; corrections require re-submission; unapproved timesheets block payroll processing. These bottlenecks push payroll deadlines to the last minute, increase error rates, and prevent early payment to contractors or staff.

Key Findings

  • Financial Impact: AUD 8,000–15,000 per annum in lost payroll productivity; 2–4 working days delayed per payroll cycle
  • Frequency: Every payroll cycle (typically 2-weekly or monthly, 13–26 cycles per year)
  • Root Cause: Manual email-based or paper-based approvals; no workflow automation; no real-time dashboard visibility; no approval reminders or escalations

Why This Matters

The Pitch: Australian contractors lose 2–4 working days per payroll cycle due to manual approval delays. A 30-person payroll processed 26 times annually costs AUD 8,000–15,000 in lost productivity and rework. Automated timesheet workflows with real-time site approvals compress payroll processing from 7 days to 24 hours, freeing payroll staff for strategic work.

Affected Stakeholders

Site supervisors/foremen, Payroll administrators, Finance managers, HR staff (staff inquiries about payment)

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Unbilled Labour Hours & Time Theft

AUD 2,000–6,000 per employee annually; 5–15% of billable labour hours lost to time theft or underreporting

Manual Payroll Processing & Reconciliation Delays

AUD 3,000–8,000 per month (payroll admin overhead); 20–40 hours per month of manual rework

Superannuation Guarantee Shortfall & SG Charge

AUD 5,000–15,000 per annum in SGC exposure; penalty is 200% of shortfall plus 10% interest

GST/BAS & STP Lodgement Errors & ATO Penalties

AUD 2,000–6,000 per annum in BAS correction costs and interest; STP Phase 2 penalty up to AUD 13,500 per year for non-compliance

Unbilled Change Order Work Due to Incomplete Documentation

Estimated 2-5% of contract value per change order; typical commercial fit-out project: AUD $50,000-$150,000 in unbilled work per year

Delayed Change Order Approval and Payment Hold-Up

15-30 day payment delay per change order; interest cost @ 6% p.a. on average AUD $300,000 WIP = ~AUD $5,000/month opportunity cost for mid-sized contractor

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