Payroll Register
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Definition
A payroll register is the report produced for each payroll run that lists every employee paid, with hours, gross pay, each tax withheld, each deduction, net pay, and the employer's own taxes. Totals at the bottom show the full cost of the run. Payroll teams review it before approving pay and keep it as a required payroll record.
How a payroll register works
The register is the line-by-line record of one payroll run. A typical layout has one row per employee and columns for:
- Pay period, pay date and pay type (regular, overtime, bonus, reimbursement).
- Hours and rates for hourly employees.
- Gross pay.
- Employee taxes: federal and state income tax, Social Security, Medicare, and local taxes.
- Payroll deductions such as retirement contributions, benefit premiums and wage garnishments.
- Net pay and payment method, such as direct deposit or check.
- Employer taxes and contributions, which don't reduce the paycheck but do add to cost.
Teams use the register at three points. Before approval, they compare it with the previous run to catch unusual changes, such as a missing employee or a doubled bonus. After the run, finance posts the totals to the general ledger. At quarter end, register totals are matched against tax returns during payroll reconciliation.
It is also a legal record. The FLSA requires employers to keep payroll records for at least three years (U.S. Department of Labor, Fact Sheet 21), and the IRS says employment tax records should be kept for at least four years after the fourth-quarter return for the year is filed (IRS).
Example
Illustration: a semimonthly register for three employees. Social Security (6.2%) and Medicare (1.45%) are calculated on gross pay, because traditional 401(k) deferrals are still subject to those taxes. Income tax figures are illustrative; real amounts depend on each W-4.
| Employee | Gross | Fed. income tax | Social Security | Medicare | State tax | 401(k) | Net pay |
|---|---|---|---|---|---|---|---|
| A (salaried) | $2,500.00 | $210.00 | $155.00 | $36.25 | $95.00 | $125.00 | $1,878.75 |
| B (salaried) | $3,200.00 | $320.00 | $198.40 | $46.40 | $128.00 | $0.00 | $2,507.20 |
| C (80 h x $20 + 8 h OT x $30) | $1,840.00 | $120.00 | $114.08 | $26.68 | $64.40 | $55.20 | $1,459.64 |
| Total | $7,540.00 | $650.00 | $467.48 | $109.33 | $287.40 | $180.20 | $5,845.59 |
Checks a reviewer can run: total deductions of $1,694.41 subtracted from $7,540.00 gross gives $5,845.59 net. The employer then owes its own matching $467.48 of Social Security and $109.33 of Medicare, $576.81 in total, so the run costs $8,116.81 before unemployment taxes and benefit contributions.
Related terms
- Payroll run: the process that produces the register.
- Payroll reconciliation: matching register totals to bank, ledger and tax filings.
- Payroll tax filing: the returns built from register totals.
- Off-cycle payroll: extra runs that produce their own registers.
- How to do payroll: step-by-step guide for small teams.
Common mistakes
- Approving without comparing to the last run. Most errors show up as a difference: a new deduction, a missing employee, a changed rate. Review the variance, not only the total.
- Confusing the register with a pay stub. A pay stub is one employee's copy. The register covers everyone and includes employer taxes.
- Not saving the final version. If the register is re-run after corrections, keep the approved version for the record.
- Leaving employer costs out of budgets. Finance teams that budget from net or gross pay alone miss employer taxes and contributions.
- Wide access. The register shows everyone's pay. Limit who can export it.
What is the difference between a payroll register and a payroll journal?
The register lists pay by employee for one run. A payroll journal entry summarizes the same totals by account, such as wage expense, tax liabilities and cash, for posting to the general ledger.
Who should review the payroll register?
The person who ran payroll and a second reviewer, often in finance, before approval. Separating preparation from approval makes it harder for errors or fraud to go unnoticed.
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