Home care payroll is harder than payroll in most small businesses. Hours change every week, caregivers work for several clients at different rates, and the source data sits in scheduling or visit-verification systems that were not designed for payroll. I have prepared weekly and biweekly home care payroll since 2020. This is the checklist I work through before any run is submitted.
Why checks belong before payroll, not after
A payroll error found after payday costs far more than one found before. It means a correction run, an uncomfortable conversation with an employee, and amended entries in the books. Almost all of the errors I see could have been caught with a consistent review of the hours.
The checklist
1. Confirm the pay period and cut-off
Make sure every visit in the export falls inside the pay period, and that late-approved visits from the previous period are handled deliberately and not paid twice.
2. Reconcile visit hours to payroll hours
Total hours in the scheduling or visit-verification export should agree with total hours entering payroll, caregiver by caregiver. Investigate every difference.
3. Look for duplicates and overlaps
Two visits for the same caregiver at the same time, or the same visit imported twice, are among the most common causes of overpayment.
4. Check for missing or unapproved visits
A caregiver who normally works thirty hours and shows twelve probably has unapproved visits. Resolve them before the run so a correction is not needed later.
5. Review rates
Confirm that rate changes, new-hire rates and any client-specific or shift-specific rates are in effect from the correct date.
6. Review overtime
List every caregiver above forty hours in a workweek and confirm that overtime has been calculated under the rules your agency follows. Overtime rules for home care workers are set by federal and state law and have changed over time, so the rules themselves should come from your payroll provider or employment counsel, not from a spreadsheet.
7. Apply paid time off, reimbursements and deductions
Check each against the written policy and the supporting request. Mileage and other reimbursements need the same review as hours.
8. Compare with the previous period
A simple comparison of gross pay and hours by caregiver against the last run highlights anything unusual in seconds.
9. Get approval
Send a short summary to the person who approves payroll: total hours, gross pay, headcount, and a list of exceptions with explanations.
After the run
- Tie the payroll register to the amount that left the bank.
- Post the payroll journal entry and reconcile payroll liability accounts.
- Keep the reconciliation and approval with the payroll records. Auditors ask for them.
Make it a routine
The value of a checklist comes from using the same one every period. Write it down, keep the evidence, and the process no longer depends on one person remembering what to look for.
If your agency wants payroll prepared and reconciled this way, see payroll administration or read about my home care experience.
This article is general information about payroll process. It is not legal advice on wage and hour requirements.