How to Create a Payroll Register

How to Create a Payroll Register

When comes to payroll service, an integral part of the system is a payroll register. A payroll register is a summary record of all employees’ pays and deductions for the pay period. It represents pay period, the total amount of total earnings, total deductions and net pay. Each individual employee’s record is added in the register and the totals of all employees are calculated at the bottom. Payroll registers are requisite for accurate employee/employer tax paying records. And tax is required to be done by the law. It is irrelevant whether you do the payroll register yourself or hire an accountant but it needs to be done correctly. When using payroll software, payroll register is automatically generated after you process the payroll. In case you are outsourcing payroll service to an external payroll service provider, they send you the registers. However, you can do the payroll register by yourself. Click here for more information:

Components of a Payroll Register

It is important to include all the necessary and required information to maintain a proper payroll register. These include:

  • Employee’s Name as appears on their annual tax filings,
  • Residency status, R for resident or NR for non-resident,
  • Marital Status,
  • Number of Dependents,
  • Total number of hours worked per day of the week, starting from Sunday to Saturday,
  • Total number of hours worked in the week,
  • Records leave days and late, incorporating them in the total hours worked,
  • Note the overtime hours separate from the regular hours worked as different pay rates implies,
  • Use appropriate formulas, federal income tax and state income tax tables for calculating payroll deductions, including:
    • Medical insurance,
    • Social Security,
    • Federal Withholding Amounts,
    • State Withholding Amounts,
    • Life insurance,
    • Saving bonds or account,
    • Union dues, etc.
  • The total deductions should be subtracted from the total pay earned. Net pay is the resulting amount, which employee takes home.

Benefits of Payroll Register

The information in the payroll register is used to help you with important payroll tax tasks such as:

  • Making payroll tax deposits,
  • Submitting quarterly payroll tax reports to the IRS,
  • Providing annual wage and tax reports to employees and the Social Security Administration, and
  • Keeping track of accumulated and net pay to the employees.

Payroll processing and fulfilling the tax requirements is an essential part any successful business. And payroll register is an important component of payroll service and accounting system. It needs to be maintained on a regular basis so that there is a detailed and extensive record of each employees worked hours, total pay, deductible and net pay. It ensures that there are no mistake committed in the pay for each employee, how much the company spend in total on wages, the types and amounts of deductible applicable, compilation of payroll history by pay period and filling for all applicable taxes such as federal, state, etc.

In conclusion, it is vital for a proper setup of a payroll service to correctly maintain a payroll register so that you can comply with tax requirements and avoid any mistakes in pay. You can find more information at, about compiling and maintain payroll register.