Step-by-Step Payroll Process

Written by diondra jackson
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Step-by-Step Payroll Process
(laptop image by Angie Lingnau from

Processing a payroll is a time-consuming process; there are several vital tasks that need to be completed prior to processing your payroll. Payroll processing requires a keen eye and an attention to detail. In order to accurately process your payroll and pay the employees their proper pay, it is always important to take your time and make sure that you are entering the correct information. However, your payroll can be processed in a timely manner if you use the following step-by-step procedure.

Skill level:

Things you need

  • Computer
  • Payroll software

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  1. 1

    Log into your payroll system and change the payroll dates to the current payroll processing date.

  2. 2

    Verify the hours for each employee by checking the payroll time sheets or payroll spreadsheet to make sure that there are no missing hours and that all of the employee's time is accounted for.

  3. 3

    Enter the employees' hours-worked information into the payroll system by either uploading the payroll spreadsheet or entering the information directly from the time cards.

  4. 4

    Print the payroll time-entry report to verify that the total-hours input matches the total hours worked for the current payroll. This is known as finalising your payroll. This should always be done prior to submitting your payroll for processing.

  5. 5

    Submit your payroll and wait for the verification confirmation that the hours have been submitted for processing. It's suggested that you print out your confirmation report and keep it with the other payroll documents for the payroll that your are processing.

  6. 6

    Print your payroll checks and put them in envelopes. If you use an outside agency to process your checks, wait for your checks to come back from the outside agency. Distribute the paychecks to the employees.

Tips and warnings

  • Always make sure your payroll check dates are accurate in your payroll system.
  • Always balance your payroll hours prior to finalising your payroll.
  • Prior to processing your payroll, you will need to have a thorough knowledge of payroll software and of the laws governing payrolls for your particular state.

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