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Payroll procedure

A payroll register is a record of all pay details for employees during a specific pay period. The payroll register lists information about each employee for things such as gross pay, net pay, and deductions Preparation for payroll register report. The register also lists the totals for all employees combined during the period.

A payroll register helps employers keep track of employee payroll information conveniently. It basically provides a summary of payroll data, serving as a reference, record and a tool to assist with a number of payroll tax-related tasks payroll register audit bangalore. These include submitting payroll tax deposits and tax reports to the IRS (Form 941) every quarter, and providing yearly tax and wage reports to employees and the SSA (Social Security Administration). A payroll register can be in the form of hard copies or electronic documents or a feature of a payroll software program. It is structured in a way that allows easy access and understanding of data. Some of the information listed by a payroll (for each payroll period) includes total gross pay, total deductions and total net pay.

The difference between payroll register and paycheck history reports

A paycheck history report gives the totals for an individual employee for a pay period. A paycheck history report doesn’t list other employees. A paycheck history can be given to an employee as a pay stub.

A paycheck history report gives the totals for an individual employee for a pay period. A paycheck history report doesn’t list other employees. A paycheck history can be given to an employee as a pay stub.

Information on a payroll register

The rows of a payroll register have information about individual employees. They might look similar to employee pay stubs. For each employee, the payroll register includes:

  • Name.
  • Pay period.
  • Pay date.
  • Regular hours.
  • Overtime hours.
  • Pay rate.
  • Gross pay.
  • Federal, state, and local income taxes Employee withholding for Social Security and Medicare taxes.
  • Other deductions.
  • Net pay.

A payroll register does not include information about employer taxes. However, some payroll registers might include this information anyway:

  • Employer contributions for Social Security and Medicare taxes.
  • Federal unemployment tax.
  • State unemployment tax.

At the end of the payroll register, after all employee information is listed, there is a totals section. This is where all the employee information is combined register payroll tax bangalore. For example, you can see the total overtime hours worked by employees during the selected period. Or, you can see the total net pay for all employees.

You can adjust the time period for the payroll register. You might only want to look at the last run payroll. Or, you might want to pull up data for the last quarter. When you use payroll software instead of learning how to prepare a payroll register by hand, you can easily change the time period, and the software will pull up the information you want.

How to use a payroll register

You can use a payroll register for several tasks.

The payroll register can show you how much money you need to set aside for certain payments, such as employer contributions to Social Security and Medicare taxes payroll register in accounting Bangalore. Seeing how much you need to set aside helps prevent you from spending that money on other things.

Along the same lines, you can use your payroll register to deposit and file your payroll taxes. You simply need to pull up the time period you are handling taxes for, and use the totals to determine the amount you need to deposit or file.

You can also use the totals on the payroll register to reconcile your payroll accounting. If a number doesn’t match up, you can look back in your payroll records to find the problem.

Example

Payroll deductions are listed after the gross pay has been calculated. FUTA, SUTA, FICA and other deductions are subtracted from the gross to show the net pay for each employee during the payroll period. The payroll checks are then written for the net pay.

Many employers will also have year-to-date totals on the report for each employee. This way gross pay and deductions can be tracked easily throughout the year.

Bookkeepers use the payroll register not only to write the payroll checks, they also use it to file the quarterly payroll reports and remit the tax payments to the state and the federal governments. The year-end W-2 reporting is also based on the payroll register. In other words, it includes all the information to record the payroll in the payroll journal and comply with all of the proper payroll filings.

What Does a Payroll Register Include? 

You must keep a record of totals for all employees for the following:

  • Total gross wages, total social security wages (up to the maximum for each employee each year), and total Medicare wages.
  • Totals withheld from employee pay for federal, state, and local income taxes.
  • Totals withheld for the employee share of social security and Medicare.
  • Totals withheld for all optional donations, such as charitable giving, union dues, and others.

In addition, you must set aside an amount equal to the total social security and Medicare deduction.

Creating Payables From the Payroll Register

Payables are amounts that are owed by your company to others, but which have not yet been paid. The total for each category for each paycheck creates several payables that are owed to federal and state (and sometimes local) agencies.

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