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Payroll Processing Checklist
Pre-Payroll Preparation
Ensure all employee timesheets for the pay period have been received and approved by supervisors.
Verify the accuracy of timesheets, checking for any discrepancies or irregularities in hours worked.
Update payroll system with any employee changes, such as new hires, terminations, or adjustments to pay rates.
Payroll Calculation
Process the timesheets through the payroll system to calculate gross pay for each employee.
Deduct the appropriate taxes, benefits, and other withholdings to calculate net pay.
Confirm that all payroll calculations comply with federal, state, and local wage and hour laws.
Payroll Verification
Review the payroll register and verify the accuracy of pay for each employee.
Perform a reconciliation of the payroll to ensure that total gross pay, deductions, and net pay are correct.
Obtain final approval for the payroll from the authorized manager or department head.
Post-Payroll Activities
Ensure the direct deposit transactions are initiated with the bank, and that the payroll funds are available.
Prepare and distribute pay stubs or electronic access to employees.
Report and remit payroll taxes and other deductions to the appropriate government agencies.
Record Keeping and Compliance
Maintain accurate and complete payroll records for auditing purposes and in compliance with legal requirements.
Update any payroll-related changes in the employee master files, such as tax withholding statuses or benefit deductions.
Prepare and file all required payroll reports, such as Form 941, W-2, and state unemployment filings.
