Payroll records worth keeping in order

An employee who is underpaid by a small amount notices immediately. A contribution that was deducted but not remitted shows up months later. Both problems are prevented the same way: records that are complete before the money moves.

Before each pay run

• An approved time or attendance summary for the period.
• Changes to rates, allowances or deductions, each with a signed approval.
• New hires and separations, with their start or last working dates.

After each pay run

• A payroll register showing gross pay, each deduction and net pay per employee.
• Payslips issued to every employee.
• Proof of each government contribution and withholding remittance, filed by month.

Plan the year-end early

The 13th-month pay, annualized withholding and year-end certificates all depend on the monthly records being right. Reconciling them quarterly turns December into a review instead of a rebuild.

Payroll that is checked before it is paid rarely needs to be corrected after.

This article is general information for business owners, not professional tax or legal advice. Requirements change; confirm the details that apply to your business with a qualified accountant.