Payroll Processing Checklist
This is a free, downloadable monthly payroll processing checklist. It breaks a payroll run into clear phases with tick-box actions so nothing is missed: gather your inputs, calculate pay, review and approve, then pay staff and file records. Work through it top to bottom each pay cycle to reduce errors, pay people on time, and keep an audit trail. Any team can use it, with any payroll tool.
Download the checklistFree · Markdown (.md)
Gather inputs
- Confirm the pay period start and end dates and the target payment date.
- Finalize attendance and timesheets so all worked hours are recorded and approved.
- Finalize leave for the period (paid, unpaid, sick) and reflect it in worked hours.
- Collect and approve any overtime, shift differentials, and on-call hours.
- Add new hires, remove leavers, and update any changes to pay rates or bank details.
- Gather one-off items: bonuses, commissions, reimbursements, and advances or loans.
Calculate
- Calculate gross pay for each employee from base salary plus approved overtime and extras.
- Apply statutory deductions such as income tax and mandatory contributions at current rates.
- Apply other deductions: insurance, retirement or pension, loan repayments, and garnishments.
- Calculate employer contributions and any allowances or benefits in kind.
- Confirm net pay for each employee (gross minus total deductions).
- Total the run and check it against last period and the approved budget for large swings.
Review and approve
- Spot-check high earners, new joiners, and leavers line by line for correct amounts.
- Verify no duplicate, missing, or zero-net payments appear in the run.
- Reconcile total gross, deductions, and net against your ledger or control totals.
- Have a second person review and sign off before any money moves.
- Confirm bank account details and payment amounts before releasing the batch.
Pay and file
- Submit the payment batch so staff are paid on or before the payment date.
- Generate and distribute payslips showing gross, deductions, and net pay.
- Remit tax and statutory contributions to the relevant authorities by their deadlines.
- File required returns and reports for the period on time.
- Archive the payroll register, approvals, and payslips for your record-retention period.
- Note any issues or corrections to carry into next month's run.
How to use this checklist
- 1Download the Markdown file and open it in any text editor, notes app, or document tool.
- 2Work through the phases in order each pay cycle, ticking each item as you complete it.
- 3Adjust the deductions, filings, and deadlines to match your country and payroll setup.