What Are Payroll Journals?

Think of a a payroll journal as a management report that details the same information that is on an employee's pay stub for each employee.

Division

Often payroll journals are subtotaled by location or department. It may even break down the pay according to task or client as well.

Purpose

The detailed wage information is used to properly book payroll expenses to the general ledger and to analyze costs and monitor such issues as overtime, time off with pay and time expended per department. It is also a key tool for identifying and correcting payroll processing errors.

Register

Payroll journals are sometimes referred to as payroll registers.

Direct Deposit

The journal may also detail wages paid through direct deposit as opposed to cutting checks.

Confidentiality

Access to payroll reports is typically limited to only certain members of management and the person responsible for processing the payroll. This is done to maintain confidentiality of sensitive information.

References

• Payroll Journal