Before the pay run: collect the facts
- ☐ Confirm employer name, EIN, work location, and pay-period dates.
- ☐ Confirm each employee’s status, pay basis, work state/locality, and current Form W-4 information.
- ☐ Collect approved hours, overtime, commissions, bonuses, differentials, reimbursements, or other earnings.
- ☐ Confirm deductions and benefit changes for the period.
- ☐ Carry forward prior year-to-date balances only from a completed, reviewed source.
- ☐ Identify new hires, terminations, leaves, or other changes that can affect the period.
For very small teams, most payroll problems begin with an input that was late, incomplete, or copied from the wrong period. A short pre-run checklist is usually more valuable than adding more calculation complexity.
During the run: calculate one employee at a time
- ☐ Calculate gross pay from the correct hours, salary basis, and additional earnings.
- ☐ Apply current federal withholding methods and supported state/local rules.
- ☐ Calculate Social Security and Medicare taxes where applicable.
- ☐ Apply authorized deductions and reimbursements in the correct order.
- ☐ Confirm net pay reconciles to gross pay less deductions and taxes plus any net additions.
- ☐ Review year-to-date values for continuity.
Use the same pay-period anchor for every employee in the run. If one employee needs a correction, resolve it before treating the employer totals as final.
Review before you finalize
- ☐ Compare total gross pay with the prior period and explain major changes.
- ☐ Scan for unusually high or low net pay.
- ☐ Verify overtime and supplemental earnings were treated correctly.
- ☐ Check that deductions were not duplicated or omitted.
- ☐ Review statement previews and employer-level totals together.
- ☐ Confirm that any blocking issue is resolved rather than silently ignored.
A review step is not a substitute for tax or legal advice. It is a control: a deliberate pause to make sure the record you are about to rely on actually reflects the inputs you intended to use.
After the run: complete employer responsibilities
- ☐ Pay employees through the employer’s actual wage-payment process.
- ☐ Make federal, state, and local tax deposits according to the applicable schedules.
- ☐ File required employment-tax returns and wage reports when due.
- ☐ Deliver required employee statements or pay information under applicable law.
- ☐ Save the payroll register, employee records, and support documents together.
- ☐ Back up any browser-local or local-only records you need to preserve.
Federal employment-tax deposit timing is not the same thing as employee pay frequency. The IRS determines federal deposit schedules under separate rules, while employee paydays and wage-statement requirements can depend on state law.
Month-end and quarter-end checks
At month end, reconcile payroll-related cash, wage expense, payroll liabilities, and any clearing accounts used by the bookkeeping system. At quarter end, compare payroll records to the amounts reported on Form 941 or other applicable employment-tax returns. Differences should be investigated while the underlying payroll detail is still easy to trace.
Quick FAQ
What is the most important payroll checklist item?
Consistency. A checklist works when the same controls are used every pay period, especially around period dates, employee inputs, gross-to-net review, and final record retention.
Should the bookkeeper approve payroll?
That depends on the engagement and the employer’s internal controls. Define who prepares, who reviews, and who has final authority before payroll is due.
Can a payroll checklist replace professional review?
No. It organizes the workflow but does not replace legal, tax, accounting, or state-specific review where needed.
LeoFolio pathway
For small-employer payroll record preparation, LeoFolio U.S. Pay Run supports one employer and up to five employees per completed run, with reviewable calculations and a coordinated record package.
Source notes for editorial verification
- IRS Publication 15 (2026), Employer’s Tax Guide
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS — Form 941, Employer’s Quarterly Federal Tax Return
- IRS — Employment tax recordkeeping
- U.S. Department of Labor Fact Sheet #21 — FLSA recordkeeping
- IRS — Outsourcing payroll and third-party payers