A payroll register is one of the most important documents you’ll create when running payroll for your small business. This report tracks every detail about employee wages, deductions, and net pay for each pay period. And since nearly half of employees (49%) say they would start looking for a new job if they experienced payroll errors or delays, putting one into practice makes good business sense.
What you’ll learn
What you’ll learn
Key takeaways
- A payroll register is your complete payroll snapshot
- Payroll registers are essential for tax compliance, quarterly filings, and audit preparation
- You can create registers manually using spreadsheets or use payroll software to produce them with one click
- Review your register after each payroll run to prevent expensive mistakes
Think of it as your payroll command center. It shows gross wages, tax withholdings, benefit deductions, and final take-home pay for every employee. You’ll use this document for financial reporting, tax compliance, and audits.
This guide walks you through reading a real payroll register example. You’ll learn what each column means, how to spot errors, and the best ways to create your own register.
What is a payroll register used for?
Put simply, a payroll register serves multiple functions in your business operations. It provides a snapshot of your payroll costs for any given pay period.
Small business owners rely on payroll registers to verify pay calculations before issuing paychecks. The register allows you to double-check gross pay calculations, confirm that tax withholdings match current rates, and verify that benefit deductions are accurate.
During tax season, your payroll register becomes invaluable. In Fiscal Year 2024, the IRS assessed 4,410,799 civil penalties related to employment taxes, totaling approximately $26.85 billion. Your register provides all the data needed for quarterly tax filings and year-end reporting.
If you face an audit from the IRS or the Department of Labor, a well-maintained register demonstrates your commitment to accurate record-keeping.
How a payroll register compares to other payroll documents
Many business owners confuse payroll registers with other payroll documents. It’s important to understand these documents, though, as they serve different purposes.
Payroll register vs. pay stub
Pay stubs are individual documents that employees receive with each paycheck. They show personal wage and deduction information for that specific employee and pay period.
On the other hand, a payroll register is an internal document that summarizes data for all employees in one comprehensive report. Pay stubs focus on individual employee details, while the register gives a bird’s-eye view of the entire payroll from gross wages to the actual pay a person takes home.
Payroll register vs. payroll journal
The payroll journal focuses on accounting entries. It shows how payroll transactions affect your general ledger accounts, which carry over to your financial statements.
Your payroll register shows the detailed breakdown of all compensation, as well as individual employee compensation. Both documents work together to provide complete payroll documentation.
Key elements in a payroll register
An effective payroll register includes five core data categories:
- Gross pay appears first and shows total earnings before any deductions. This includes regular wages, overtime pay, bonuses, commissions, tips, and other compensation.
- Taxes withheld typically occupy several columns. Federal income tax withholding appears first, followed by Social Security and Medicare taxes. State income tax withholding is listed in its own column, if applicable.
- Voluntary and involuntary deductions cover everything else removed from gross pay. Health insurance premiums, retirement plan contributions, and life insurance costs are common voluntary deductions.
- Net pay represents the total amount paid to each employee after all deductions have been applied. This number should match the one that appears on the employee’s actual paycheck or direct deposit.
- Employer contributions represent your costs for Social Security and Medicare matching, unemployment taxes, and contributions to benefit programs.
Payroll register example and walkthrough
Here’s what a typical small business payroll register looks like for a weekly pay period. When reviewing payroll register examples like the one below, notice how the data is organized across multiple columns for easy reading.
Sample Payroll Register Report:
Your Business, LLC
Pay Period: March 4-10, 2025
This register shows each employee’s complete pay breakdown. Sarah and Lisa contribute to health insurance and retirement plans, while Mike has no voluntary deductions. Lisa worked overtime, earning time-and-a-half for her extra five hours.
The totals row provides your complete payroll snapshot: $2,030.00 in gross wages, various tax withholdings, voluntary deductions, and $1,421.70 in total net pay distributed.
‘Most payroll software generates these reports automatically. You can also create your own using spreadsheet templates or build one from scratch.”
— David Kindness, CPA
How to use a payroll register for payroll accuracy
To keep things from falling through the cracks, schedule a time after each payroll processing run to verify your registered data.
Start by checking gross pay calculations. Verify that hourly employees’ hours match their timesheets. Confirm overtime calculations use the correct multiplier (typically 1.5 times the regular rate).
Tax withholding verification comes next. Double-check that Social Security and Medicare withholdings equal 6.2% and 1.45% of gross wages, respectively.
The math must balance perfectly: total gross pay minus total deductions must equal total net pay. If the numbers don’t add up, put your detective cap on and see what’s amiss before issuing payments.
How to create a payroll register manually or with software
You have two main options for creating payroll registers for your business: manual and software. Each approach has distinct advantages and drawbacks. Let’s start with manual.
Manual creation using spreadsheets
Small businesses are estimated to spend nearly 40 hours per month handling payroll and HR-related tasks. To manage this task manually, you can build a basic sample payroll register using Excel or Google Sheets. Create columns for employee names, hours worked, pay rates, gross wages, tax withholdings, each type of deduction, and net pay.
The pros and cons of this method include:
- Pros: Complete control, no subscription fees, works offline
- Cons: Significant time investment, higher error risk, need for manual tax updates
If you want to save nearly 40 hours per month – and the cost that goes with it — then taking advantage of payroll software to auto-generate registers could be your answer.
Software-based registers
Managing payroll with dedicated software generates registers automatically. The system calculates gross pay, applies current tax rates, processes deductions, and produces professional-looking reports.
- Pros: Automatic tax updates, built-in compliance checks, integration with accounting systems, substantial time savings, one-click registers
- Cons: Monthly subscription costs, learning curve
“While payroll software does come with a monthly subscription cost that you’ll need to stomach, it may be less expensive than paying your payroll/HR staff many hours per month to run payroll manually.”
— David Kindness, CPA
What information is listed on the payroll register?
Payroll registers contain specific data for each employee and pay period:
- Employee identification: Names and employee ID numbers
- Time and attendance data: Regular hours, overtime, and special pay categories
- Pay rate information: Hourly rates or salary amounts
- Tax withholding details: Federal income tax, state income tax (if applicable), Social Security tax, and Medicare tax
- Deduction information: Health insurance, dental coverage, vision plans, life insurance, and retirement contributions. Involuntary deductions like wage garnishments also appear here
- Net pay: Final take-home amounts
- Payment details: Payment methods and bank account details (when applicable)
When to review or update your payroll register
Review your payroll register immediately after each payroll run before releasing payments to employees. This gives you time to correct errors without disrupting employee expectations.
- Monthly reviews help identify trends and patterns. Look for unusual changes in gross pay, tax withholdings, or deduction amounts.
- Quarterly reviews align with tax filing deadlines. Compare register totals to your quarterly tax reports.
- Update your register when adding new employees, benefit plans, or deduction types.
“We tried a local payroll person and a large payroll company before switching to OnPay, which has been far better at handling our needs and is wonderfully responsive. With employees in many states, OnPay made registering payroll taxes much easier than past providers, saving us time and money. Entering payroll is extremely easy – I can use the time saved to better support my own customers.”
— Jeff Glazer, Griffon Prep
Common mistakes to avoid with payroll registers
Small errors can become big problems. Here’s what to avoid:
- Mathematical errors top the list of common problems. Double-check all calculations, especially overtime premium calculations and tax withholding percentages.
- Outdated tax tables also cause significant problems. Tax withholding rates change annually and sometimes mid-year.
- Inconsistent data entry creates confusion and errors. Establish standard procedures for entering employee names, pay codes, and deduction categories.
- Missing documentation makes register data meaningless during audits. Keep supporting documents, such as timesheets, W-4 forms, and benefit enrollment forms on hand.
Make payroll reviews easier with accurate registers
Accurate payroll registers go a long way to streamline your entire payroll reporting process. When your register data is correct, tax filings become straightforward, employees stay productive, and there’s less uncertainty when payday rolls around.
OnPay creates your payroll registers automatically with each pay run. No more building spreadsheets or hunting down missing data. We handle the tricky stuff like overtime calculations, different deduction types, and state tax requirements. You get clean, professional reports that your accountant or auditor will appreciate.
Ready to streamline your payroll process? Get started with OnPay today and see how we can save you serious time while keeping mistakes to a minimum. Plus, you’ll get your first month free so you can see the benefits with no risk. If you have any questions, our team of experts are ready to help.
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.