Start using this Workflow
Payroll Processing Checklist
Employee Data Collection
Gather personal details of employees including full name, address, and contact information.
Collect Social Security numbers or other tax identification numbers.
Obtain bank account details for direct deposits.
Ensure employee tax forms (W-4, state tax forms) are completed and filed.
Verify employee eligibility to work (I-9 form).
Time Tracking and Attendance
Ensure time tracking systems are updated and functional.
Review and approve employee timesheets.
Verify overtime hours and other additional hours worked.
Reconcile any discrepancies in reported hours.
Record vacation, sick leave, and other types of paid time off.
Payroll Calculation and Processing
Calculate gross pay for each employee based on hours worked and salary rates.
Deduct applicable federal, state, and local taxes.
Account for employee benefits deductions (health insurance, retirement contributions).
Include any additional earnings such as bonuses or commissions.
Prepare payroll reports for review and approval.
Payroll Distribution
Generate paychecks or direct deposit files.
Distribute pay stubs to employees.
Ensure all payments are processed through the correct bank accounts.
Handle any payroll-related inquiries from employees.
Confirm successful completion of all payroll transactions.
Post-Payroll Activities
Update payroll records and databases.
Reconcile payroll accounts and ledgers.
Prepare and file payroll tax returns.
Maintain payroll documentation for compliance purposes.
Evaluate payroll processes for any improvements or adjustments.
