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Why Payroll Without Proof Is Expensive (and How GPS Verification Fixes It)

Jessica Packard
Last update on:
October 7, 2025 6:21 AM
Published on:

TL;DR

Without verifiable proof of employee time and location, you’re probably paying for hours that haven’t actually been worked. Paper timesheets and manual punch-ins can create errors and the need for labor-intensive corrections. With Timeero’s GPS-verified time records, you can make your payroll accurate, audit-ready, and faster to run.

If you run payroll without proof, you’re likely paying for hours that weren’t worked.

Teams that lack a way to track employee time and mileage encounter more payroll errors and compliance issues than most businesses realize. 

In this article, we’ll explore the costs of running payroll without proof and how Timeero’s GPS tracking technology provides your business with verified time and mileage records you can trust.

Stop paying for hours you can't verify.

Timeero provides the GPS-verified proof you need for every single timesheet.

Start your free 14-day trial and pay your team with 100% confidence.

What are the costs of running payroll without proof?

It might seem like no big deal to submit payroll entries without verifying their accuracy. But running payroll without documented proof of hours worked and miles traveled comes with hefty consequences. 

payroll without proof

Here are 5 ways running payroll without proof could be costing your business time and money.

1. Overpaying for hours not worked

Employee time theft (e.g., buddy punching, falsified entries, and missed punches) is a problem most companies without clear attendance and timekeeping policies deal with. Since employees know that you don’t have a way to check whether or not they were actually onsite at their scheduled time, they are more likely to take advantage of your timekeeping system and falsify their hours. 

This means that you end up paying for labor that was never performed, and hours that were never worked!

2. Payroll disputes waste valuable company time

“How can you say I didn’t drive 30 miles today. You don’t have any proof!” 

Disputes like these happen when you don’t have a way to verify actual mileage. Relying on an honor system doesn’t just prove costly financially, but also wastes valuable company time. 

HR teams invest long hours into investigating and correcting payroll mistakes while your employees grow impatient waiting for their paychecks to get fixed. The back and forth between employer and employee is often the culprit of high employee turnover in most companies.

3. Admins spend hours fixing mistakes

Backtracking to fix payroll mistakes can be extremely time-consuming, especially if you oversee a large team. 

When employees bring up errors on their paychecks, HR teams and admins have to spend additional time chasing down records and piecing together data to come to a solution that is fair for everyone.

4. Inaccurate records lead to fines and penalties during audits

During an audit, missing, vague, or altered records put you at higher risk of citations, penalties, and back pay. 

The IRS has strict requirements for mileage logs. Drivers must collect the following information: 

  • Date of trip
  • Purpose of trip 
  • Destination
  • Total mileage for each trip made
  • Odometer readings at the beginning and end of the year 
  • Total yearly mileage

Without detailed records of business travel, you increase the risk of incurring hefty fines. But don’t forget, failing to keep well-documented timekeeping records won’t look good if a former employee files a lawsuit against your company for missed breaks or wages.

5. Trust breaks down between employees and managers

When you don’t have transparent, reliable proof of work for payroll, workers may feel like their honesty is being questioned, and managers often distrust the hours that are submitted.

Instead of payroll being a simple process, no one trusts the system. Employees question the accuracy of their paychecks, and managers raise their eyebrows at every hand-written timecard and mileage log. 

The missing link: GPS-verified tracking

Having payroll that’s backed by proof is important, especially when your time and money is on the line. 

To increase the accuracy of payroll and protect profit, businesses use GPS software to automate employee time and mileage tracking.

With GPS-verified tracking, businesses can:

  • Eliminate guesswork: Employee location is captured each time a time entry is made. Quickly spot early clock-ins, time theft, and verify your employees clocked in/out from the right job site.
  • Prevent internal disputes: No more “he said, she said”. You have access to employees’ exact driving routes as well as when and where clock-ins occurred. 
  • Create audit-ready records: GPS-verified data stands up against audits and lawsuits. Time and mileage records are detailed and show an employee’s actual time and mileage. No more missing records or pieced-together timesheets.

How can Timeero simplify payroll?

If you find yourself questioning the accuracy of employee time cards and run into constant disputes, Timeero’s GPS tracking technology verifies employee records for simplified payroll.

Here are 6 benefits you can experience when you use Timeero as part of your payroll process.

1. Lower payroll costs

Timeero gives you an accurate picture of hours worked and miles traveled, eliminating costly overpayments. Through GPS verification, you can reimburse employees for actual mileage and compensate workers for labor performed.

2. Faster payroll processing

Timeero automatically captures the time and mileage of your employees, and quickly compiles the data into payroll-ready reports. With less back-and-forth between employees, HR, and payroll teams, you can run payroll faster with fewer manual corrections.

3. Fewer disputes

GPS-verified time and mileage logs reduce employee/employer disputes, saving HR teams countless hours chasing down payroll records, and preserving valuable employee relationships.

Real-world application: A remodelling contractor uses GPS-verified clock-ins to back up their client invoices, reducing disputes over billable hours.

4. Stronger compliance

With GPS-verified timesheets, you can produce audit-friendly records quickly and easily, reducing the risk of wage audits and compliance investigations.

Real-world application: A wage and hour lawsuit lands on the desk of a California company. With Timeero, the company is able to produce GPS-verified time and location logs to demonstrate proper legal compliance.

5. Improved trust

Timeero gives you transparent and objective records that build confidence in all parts of your business. Employees will see they’re being paid for the hours they worked, and managers will have clear figures showing what they’re spending on labor.

Real-world application: A cleaning company’s employee satisfaction scores have increased dramatically since they started using Timeero for GPS tracking. Workers now trust that their overtime is calculated correctly, and managers gain peace of mind that labor costs reflect actual time worked.

6. Better insights into projects and billing

Each time employees clock in to a job, Timeero captures their GPS location. This means employees’ work hours are tied to individual job sites, improving job costing, invoicing, and project management.

Real-world application: A consulting firm uses Timeero’s project-specific reporting to see which contracts are the most profitable. They find that certain clients tend to repeatedly go over-budget. This gives leadership the insight they need to adjust pricing and improve margins.

Get the proof you need for payroll with Timeero

Overpayments, long and corrective workflows, damaged trust, and audit risks are all potential consequences of running payroll without verifiable proof.

With Timeero’s GPS-backed time and mileage tracking, you get the proof you need to run accurate and compliant payroll.

Simplify your company’s payroll process with Timeero. Sign up for your free 14-day trial today.

FAQs

Why is payroll without proof so costly?

Manually verifying employees’ time and mileage records is a time-consuming process that requires additional work for admin. Padded mileage and inaccurate timesheets increase the risk of costly payroll errors if left unchecked.

How does Timeero help me save money on payroll?

Timeero helps you save money by creating verifiable and tamper-proof records backed by GPS data. This helps reduce overpayments, eliminate time theft, and reduces the time admins spend correcting timesheets.

Can GPS tracking reduce payroll disputes?

Yes. When employee time entries are GPS verified, you have the evidence you need to resolve disputes quickly.

Is payroll guesswork costing you money?

Timeero's GPS verification eliminates expensive time theft and inaccuracies.
Try it free for 14 days and take control of your labor costs today.
AUTHOR
Jessica Packard

Jessica Packard is a B2B SaaS content strategist lead who helps companies turn SEO and content into real growth. With a mix of creativity and data-driven thinking, she builds strategies that drive traffic, generate leads, and make content a core part of the business.

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