First, I think we are talking about NFHS rules in which there is no such thing as offsides.
Under NFHS the neutral zone is established once the ready-for-play is sounded. Neither side can encroach, if they do, it is enroachment and a dead ball.
The center is allowed to have his hands in the neutral zone and can adjust the ball without penalty.
As for when you penalize for encroachment. Most high school fields make it difficult to establish whether ends are lined up correctly. Therefore, benefit of the doubt as long as there is no advantage gained. If the encroachment is slight, warn the offender and let the coach know. If it persists, then flag it.
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