Hi JupiterLight,
You have discovered the "Crossing Midnight" feature of Numbers. Welcome to the club!
Numbers will silently insert a Date (the day when a Time is entered).
Reducing your table to Sunday start and Sunday stop (and I did not use Merge Cells in Row 1; they can cause problems):
Here is a Numbers table with Date & Time both displayed in Columns B and C. No need to display the date. I chose to display it for clarity.

Columns A, B, and C are entries. Type the time and Numbers will fill in the current date (even if the cell does not display the date).
Formula in D2 (and Fill Down)
=IF(OR(B2="",C2=""),"Start & Stop?","OK")
If B or C is blank "" (NULL, empty), then return the text "Start & Stop?", else return the text "OK"
The red error triangle in E7 is another alert (Allison has not entered a Stop time)
Formula in E2 =C2−B2−"0.5h" (half hour lunch break?)
Conditional Highlighting in Column E

Formula in F2 =IFERROR(IF(DUR2DAYS(C2−B2)>1,C2−B2−"0.5h"−"1d",C2−B2−"0.5h"),"0h")
The Bold part does the work in correcting the actual work time by subtracting "0.5h" (lunch break) and "1d" (1 day) if the Stop time is entered a day late.
The IFERROR function wrapped around the Bold part enters "0h" if the timesheet is not complete. Note that "0h" is aligned left because it is a Text value.
Formula in G2 =DUR2HOURS(F2)
That converts a Duration to a number for you to use in your payroll calculation.
Regards,
Ian.
Hide the columns that are not needed in your timesheet.