What is a payroll cut off?
A payroll cut off is the deadline by which all employee hours, wage adjustments, and relevant data must be submitted in order to be included in the upcoming payroll run. Once the payroll cut off passes, any updates—like extra hours worked, missed punches, or bonuses—will typically roll over to the next pay period.
For employers, understanding and communicating payroll cut off times is critical for timely, accurate pay. If your team misses the deadline for submitting timesheets or making adjustments, employees may be underpaid or overpaid, and fixing those issues can be time-consuming and expensive.
How a payroll cut off works
Each pay cycle has a schedule: a pay period that defines the dates employees work, and a payroll processing period that follows. The payroll cut off sits in between. It marks the last moment for finalizing hours and inputs before payroll is calculated and payments are processed.
Here’s how the process typically flows:
- Employees clock in and out during the pay period (e.g., April 1–15)
- The payroll cut off date arrives (e.g., April 16, 12:00 PM)
- Managers approve timesheets and add adjustments before the deadline
- Payroll is processed based on the submitted data
- Payday follows a few days later (e.g., April 20)
The payroll cut off allows time for payroll software or providers to calculate gross pay, withhold taxes, process direct deposits, and file necessary reports.
Why payroll cut off times matter for employers
Missing or poorly defined payroll cut off times can lead to:
- Late paychecks: If hours aren’t submitted in time, you may have to delay payroll
- Pay errors: Hours worked after the cut off may be missed entirely or misapplied
- Manual corrections: Fixing errors post-payroll requires voiding checks, issuing corrections, and re-filing taxes
- Frustrated employees: Inaccurate pay erodes trust and leads to more HR issues
- Compliance risks: Late or incorrect pay may violate wage and hour laws in your state
For small business owners, setting a consistent, well-communicated cut off policy helps eliminate last-minute stress and keeps your team paid on time.
Payroll cut off vs. payday
These two terms are often confused, but they refer to different points in the payroll cycle:
- Payroll cut off is the deadline for submitting time worked and any changes
- Payday is when employees receive their pay
The gap between these two dates gives you—or your payroll provider—enough time to process payments accurately. For example, if your pay period ends on a Sunday, your payroll cut off might be noon on Monday, with payday scheduled for Friday.
What employers should include in a payroll cut off policy
To avoid confusion and ensure consistent payroll processing, your team should know:
- The exact date and time of the cut off for each pay period
- What needs to be submitted (hours worked, PTO requests, bonuses, tips, etc.)
- Who’s responsible for submitting and approving time entries
- How missed submissions are handled (e.g., will they be included in the next pay period?)
- Consequences of late approvals (especially for salaried or hourly workers with variable schedules)
A written policy—shared with employees and managers—helps enforce cut off procedures and avoids disputes later.
Best practices for managing payroll cut off
- Set consistent cut off times: Choose the same day and time for every payroll cycle (e.g., every other Monday at 12 PM)
- Send reminders: Use scheduling tools or time tracking apps to notify employees before the deadline
- Review time entries early: Encourage managers to approve hours throughout the pay period, not just at the end
- Lock time entries after cut off: Prevent edits that could lead to payroll mismatches
- Address late submissions clearly: Have a policy in place for handling missed punches or forgotten approvals
Payroll software can help your team stay disciplined around cut off times and ensure payroll runs smoothly—especially when your team scales or you manage multiple locations.
How Homebase helps with payroll cut off
Homebase makes it easy to manage payroll cut offs by syncing employee time tracking with automated payroll. You can:
- Set custom cut off times that align with your pay schedule
- Automatically prompt employees to submit timesheets before the deadline
- Send reminders to managers to approve hours and edits
- Lock time tracking after the cut off to prevent late changes
- Seamlessly roll approved time into Homebase Payroll for on-time processing
With everything in one place, you eliminate last-minute payroll scrambles and make sure your team gets paid correctly and on schedule.
Explore Homebase Payroll to streamline payroll cut offs, improve accuracy, and get peace of mind every pay period.