What is a payroll register?

Payroll registers help businesses track payment details, from wages to deductions, ensuring accuracy and compliance with tax requirements. It acts as a master document for tracking wages, taxes, and benefit deductions, helping businesses maintain accurate payroll records and avoid costly errors. A payroll register records payment details for each employee during a pay period, including regular wages, overtime pay, bonuses, tax withholdings, and benefits deductions. These records help maintain accurate tax filing and payroll verification.

Why is a payroll register important?

Maintaining a payroll register helps businesses generate accurate Form W-2s and provide documentation during audits. For businesses operating in multiple states, it helps track varying tax requirements and ensure proper compliance.

How does a payroll register differ from a payroll summary?

While payroll summaries provide high-level totals, payroll registers maintain detailed records of every payment component, including individual deductions, tax withholdings, and benefit contributions. Unlike payroll summaries, access to a payroll register is often more restricted since they frequently contain sensitive information specific to each employee.

Is having a payroll register a legal requirement?

Having and maintaining a payroll register is not a legal requirement, though many businesses find it helpful. Federal and state reporting requirements require businesses to provide information at a level that can be difficult to maintain without a payroll register to reference.

How long should you keep payroll register records?

Payroll register records are crucial for tax purposes, audits, and employee payment verification. Companies must maintain payroll register records for at least four years to meet IRS requirements.