What Are the Benefits of Payroll Spreadsheets?

Many employers use payroll software or a payroll service to handle their payroll processing. The system typically keeps a record of the details of each payroll; however, for backup and referencing reasons, the payroll personnel might also opt to create payroll spreadsheets.

Accessibility

If there is a problem with the payroll software, the payroll personnel can access the payroll records via the spreadsheets created.

Personal Records

Payroll spreadsheets allow one to keep a log of employees' personal data such as name, social security number, address and birthday.

Wages & Taxes

Employees' wages and taxes for each pay date plus their year-to-date amounts can be recorded on payroll spreadsheets.

Benefits & Deductions

The payroll personnel can maintain a log of employee benefits (e.g. vacation and personal days) and deductions (e.g. health).

Balancing

The payroll spreadsheets can be used to reference against the information in the system. If there are discrepancies, they can be investigated to prevent problems at year-end with employees' W2 tax forms.

Format

Payroll spreadsheets are generally created in Microsoft Excel; automatic formulas are used to determine column totals, reducing the risk of human error.

References

• Creating a Payroll Spreadsheet