Payroll monthly checklist process
1. Preparation for Payroll Processing
- Gather timesheets from all departments.
- Cross-check hours with attendance records.
- Ensure accuracy of overtime calculations.
- Resolve discrepancies with employees or supervisors.
- Compile final hours for payroll processing.
- Review HR records for updates.
- Confirm new hire documentation is complete.
- Check termination notices and last working days.
- Update employee status in payroll system.
- Notify relevant departments of changes.
- Gather all submitted time-off requests.
- Confirm approvals from managers or supervisors.
- Cross-reference with remaining leave balances.
- Document any pending requests for future processing.
- Ensure compliance with company policies.
- Review any submitted tax withholding updates.
- Confirm changes in benefit enrollments or cancellations.
- Input updates into payroll system accurately.
- Notify employees of changes made.
- Ensure documentation is complete for audits.
2. Data Entry and Verification
- Access the payroll software
- Locate the time entry section
- Input hours worked for each employee
- Double-check entries for accuracy
- Save changes and ensure they are logged
- Generate a report of entered hours
- Cross-check hours with timecards or timesheets
- Identify discrepancies and correct them
- Ensure all data is up-to-date
- Confirm accuracy with relevant department heads
- Review employee benefit selections
- Verify garnishment orders against payroll entries
- Check deduction amounts for each employee
- Make adjustments for any changes in benefits
- Document all deductions thoroughly
- Identify employees eligible for overtime or bonuses
- Calculate additional pay amounts accurately
- Enter manual adjustments in the payroll system
- Review adjustments for correctness
- Ensure adjustments are documented and approved
3. Payroll Calculation
- Access payroll software and input hours worked.
- Include bonuses, commissions, and other earnings.
- Calculate deductions for taxes, benefits, and garnishments.
- Generate preliminary payroll report for review.
- Compare reported hours to timekeeping records.
- Check for accurate tax withholdings and benefits deductions.
- Look for any duplicate entries or missing information.
- Document any identified discrepancies for correction.
- Verify that all employees are paid at least minimum wage.
- Calculate overtime pay for eligible employees accurately.
- Review state and federal regulations for compliance.
- Adjust payroll calculations as necessary to meet legal standards.
- Correct discrepancies identified in the payroll reports.
- Recalculate affected employee wages and deductions.
- Update payroll system with corrected information.
- Generate a revised payroll report for final review.
4. Final Review and Approval
- Compile data from the payroll system.
- Include total hours worked, deductions, and net pay.
- Review for any discrepancies or unusual entries.
- Generate report in a clear and concise format.
- Distribute to relevant stakeholders for review.
- Send the final payroll summary report to management.
- Request formal approval via email or designated software.
- Track responses and follow up if necessary.
- Document all approvals received for record-keeping.
- Ensure all approvals are obtained before processing payments.
- Confirm all applicable taxes are calculated correctly.
- Review deductions for benefits and other withholdings.
- Check compliance with local, state, and federal regulations.
- Ensure all forms and documents are complete.
- Document the compliance checks performed for audit purposes.
- Cross-check payment details against employee records.
- Verify bank account information for direct deposits.
- Confirm payment amounts align with the payroll report.
- Identify and rectify any inconsistencies before processing.
- Ensure all validations are documented for future reference.
5. Payroll Distribution
- Verify employee hours and earnings.
- Calculate gross pay, deductions, and net pay.
- Initiate direct deposit transactions or prepare checks.
- Confirm successful processing of all payments.
- Document payroll for record-keeping.
- Generate pay stubs for each employee.
- Ensure accuracy of information on pay stubs.
- Distribute electronically via email or payroll portal.
- Prepare physical copies for employees requesting them.
- Confirm receipt of pay stubs by employees.
- Review applicable tax rates and contribution limits.
- Calculate federal, state, and local taxes owed.
- Verify contributions to benefits and retirement plans.
- Prepare payment instructions for tax authorities.
- Set reminders for payment deadlines.
6. Post-Payroll Activities
- Gather required tax forms for each agency.
- Verify accuracy of all payroll data.
- Complete forms with correct information.
- Submit forms by the designated deadlines.
- Retain copies for your records.
- Compile employee earnings and tax data.
- Generate W-2 and 1099 forms using payroll software.
- Distribute forms to employees by January 31.
- File copies with the IRS and state agencies.
- Ensure digital copies are securely stored.
- Review payroll reports for discrepancies.
- Check for missed deductions or incorrect payments.
- Consult with team members for feedback.
- Document identified issues and resolutions.
- Plan adjustments for next payroll cycle.
- Ensure all payroll records are current and accurate.
- Archive old records as per legal requirements.
- Review compliance with labor laws and regulations.
- Organize documentation for easy access during audits.
- Implement changes based on audit findings.
7. Documentation and Reporting
- Collect all payroll transaction data.
- Organize records by month and employee.
- Ensure all data is accurate and complete.
- Store records in a secure, accessible location.
- Prepare for future audits by reviewing compliance.
- Utilize payroll software to generate reports.
- Include detailed breakdowns of costs and hours.
- Review reports for accuracy and anomalies.
- Distribute reports to management for feedback.
- Incorporate insights into future payroll planning.
- Create a log of issues encountered.
- Include steps taken to resolve each issue.
- Analyze patterns for recurring problems.
- Summarize lessons learned for team review.
- Share documentation with relevant stakeholders.
- Set a timeline for the next payroll cycle.
- Communicate deadlines to all involved parties.
- Identify any upcoming changes in payroll policies.
- Prepare necessary documentation for changes.
- Ensure all team members are informed of updates.
Use in Manifestly