A payroll register is a summary of all payroll data generated during a specific pay period. It captures individual employee details-think hours worked and pay rate-and payroll totals across the company.
Generated automatically by most payroll software, a payroll register is straightforward but essential. Employers use them to gain insight into payments to and deductions for individual employees. It's about more than just amounts. It's about where the money's going and why.
Why payroll registers matter
Financial insight
By providing detailed records of individual employee wages, payroll deductions, and employer contributions, a payroll register helps an employer monitor labor costs. Put simply, it is a clear snapshot of payroll expenses, broken out by employee.
Record-keeping
Depending on where employees are located, payroll records are required by law to be kept on hand for specified periods. For example, in the U.S., the Internal Revenue Service (IRS) requires payroll records to be stored for at least four years; in Canada, the Canada Revenue Agency requires six years.
Federal tax agencies are not the only governing body that mandates how long businesses must keep payroll records. In the U.S., individual states and the Department of Labor both have their own storage guidelines.
Bank reconciliation
When an organization is reconciling payroll expenses against its bank statements, a payroll register is a valuable tool. It provides a detailed record of all payroll transactions (including individual employee wages, deductions, and net pay) that can be compared to the actual cash outflows recorded in bank statements. This reconciliation process verifies that the amounts paid to employees and withheld for taxes and benefits match the funds withdrawn from the company's bank accounts.
When discrepancies are found, employers can investigate errors, like incorrect payments or miscalculated deductions, and resolve them.
Audits and fraud detection
A payroll register offers detailed audit trails necessary to demonstrate regulatory compliance in the event of an internal audit or an external one from a tax agency or labor inspector. Payroll registers prove that the organization adhered to tax withholding requirements and labor laws, such as minimum wage and overtime rules, for all of its employees.
In some cases, employers use payroll registers to identify fraud. For example, payment to someone who is not an employee but is on payroll (called a ghost employee) is likely a sign of malfeasance.
What's included in a payroll register?
A typical payroll register includes the following fields:
| Field | Description |
|---|---|
| Employee name and/or ID number | Identification of each employee |
| Pay date and pay period | The date that wages were paid and the relevant start and end dates |
| Hours worked | An employee's total regular and overtime hours |
| Gross pay | An employee's total earnings before deductions |
| Taxes withheld | Income and social security taxes, for example |
| Deductions |
Benefits, garnishments, and retirement contributions, among other deductions |
| Net pay | The final amount paid to the employee |
| Employer taxes | The company's share of payroll taxes |
Payroll journal vs. paystub
A payroll register is not the same as a payroll journal or a paystub.
Think of a paystub as your personal receipt for getting paid. It breaks down everything about your paycheck-how much you earned before taxes, what got taken out, and what you actually take home.
A payroll journal is different-it's more like the company's master spreadsheet that tracks everyone's pay. It keeps tabs on all the payroll activity across the whole business, recording who got paid what and keeping track of all those deductions and totals.
Your paystub is yours to keep and shows your individual pay details, while the payroll journal stays with the employer.
How employers use payroll registers
Employers consult their payroll register regularly to ensure that payment and deduction amounts are correct and that payroll complies with regulations.
Employers review payroll registers:
- Before payroll runs. Employers double-check that all employee data, hours worked, pay rates, and deductions are accurate and up to date.
- After payroll runs. The totals in the payroll register, such as gross pay, deductions, and net pay, are compared to the actual payment amounts disbursed to employees.
- At the end of each quarter or year. Quarterly and yearly audits of payroll register data ensure that payroll is accurate and running in accordance with tax and labor regulations.
For global employers with talent in multiple countries, local payroll partners or employers of record (EORs) may generate payroll registers in country-specific formats.
Payroll register best practices
1 . Use automated payroll software
Today, payroll software can manage most aspects of running payroll, from calculating deductions and tax withholdings to creating payroll registers. Older approaches to payroll, like spreadsheets or paper-based, are less efficient and prone to errors.
2 . Save records
How long payroll records must be stored depends on the tax laws and labor regulations where an employee lives.
Keeping payroll registers on hand makes it possible for organizations to verify payroll accuracy, resolve employee inquiries, and provide documentation for financial planning and reporting.
3 . Reconcile payroll registers
Regularly reconciling payroll registers with bank statements and tax payments is essential for maintaining accurate financial records and ensuring that all payroll transactions are properly documented and accounted for. This practice helps organizations identify discrepancies or errors and demonstrate compliance with accounting standards and regulatory requirements.
4 . Compliantly store data
Throughout, employees should ensure sensitive employee data is stored securely and meets data protection standards like the General Data Protection Regulation (GDPR) in the EU or the California Consumer Privacy Act (CCPA) in the United States.
FAQs
Is a payroll register legally required?
While not all jurisdictions mandate the format, it is essential for internal records and audits.
How long should payroll registers be kept?
In the U.S., employers should retain them for at least four years per IRS guidance. That said, the IRS does not call out payroll registers by name as documents to be saved.
Do payroll providers generate payroll registers?
Yes. Most platforms and integrated EOR systems provide this automatically.
Can global employers use a single payroll register format?
No. Local compliance rules may require different fields or formats by country. Businesses with global talent often turn to software platforms for support in creating payroll registers that adhere to local rules.
Pay accurately and easily with Pebl
When you have employees all over the world, paying them becomes a complicated matter. Different laws, currencies, tax rules-it's a lot. Pebl has a solution for that. Our Employer of Record (EOR) service handles the hard parts-paying your team in over 185 countries, staying compliant, and giving you clear payroll reports with insights you can actually use.
Want to know how it works? Just reach out.
Disclaimer: This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
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