Payroll System Errors That Are Quietly Costing Agencies Millions in Unauthorized Overtime

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Many agencies are shocked to learn their own payroll software is creating overpayments.

Common system errors we see include:

  • Incorrect overtime formulas that ignore the true “regular rate” of pay
  • Automatic calculation of overtime before proper approval workflows
  • Failure to flag hours that should be treated as straight time
  • Legacy systems that don’t match current award rules

One recent city audit found nearly $1.7 million in unauthorised overtime simply because the payroll system used the wrong calculation method. A single 48-hour external review can identify and quantify these issues before they compound.

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