Payroll or Wages Sheet | Meaning | Documents necessary for preparation of Payroll
What is a Payroll or Wages Sheet?
On completion of the wage period, the preparation of payroll or wage sheet starts.
The payroll or wage sheet is a consolidated list of workers, which shows the gross deductions and net wages payable to them. Moreover, the payroll shows the details like ticket numbers, trades, grades and rates of pay of the workers. Such details are collected from the employee’s record card.
It is necessary that employee’s record card should always be kept up to date. If there is any changes in the employee’s pay and allowances and/or deductions that should be immediately incorporated both in employee’s record card and wages sheet.
Documents necessary in preparation of payroll
The following documents are necessary in the preparation of payroll or wages sheet.
1. Attendance Register and/or clock cards.
2. Register for normal time and overtime.
3. Leave pay, holiday pay and dearness and other allowances.
4. Piecework card.
5. Job cards are used for the calculation of bonus.
6. Records required for deduction such as Provident Fund, State Insurance Scheme and Family Pension Fund.
7. Records received from Accounts Department for fines, losses and recovery of damages.
8. Register for co-operative society due.
9. Register of Loans and Advances.
10. Record of voluntary deductions like Voluntary Provident Fund, LIC.
11. Employee’s contribution to Group Insurance Scheme.
12. Income Tax if applicable.
With the help of above details, the Accounts Department or Payroll Department prepares payroll or wages sheet. There is no specified format for the preparation of payroll or wages sheet. The format of wage sheet will differ from one organization to another.
