Free checklist template · Word

Payroll Processing Checklist

A payroll processing checklist walks the payroll team through every step of the monthly cycle in order, from collecting inputs to calculating pay, running statutory checks, releasing salary and closing the month with challans and payslips. It reduces errors and missed compliance steps.

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[Company Logo][Company Name]

MONTHLY PAYROLL PROCESSING CHECKLIST

Company:: [Company Name]
Payroll Month:: [Month YYYY]
Salary Pay Date:: [DD/MM/YYYY]
Payroll Owner:: [HR Name]
Reviewer:: [Payroll Manager]

Phase 1 – Pre-Payroll Inputs (Owner: HR Operations)

Attendance, leave and LOP finalised and locked
Overtime and shift allowance data approved by department heads
New joiner details, bank accounts and UAN collected
Exit list with last working days received
Salary revisions, promotions and arrears approvals received
Incentive, bonus and reimbursement approvals received
Advance recovery and other deduction consents on file
Investment declarations / tax regime choices updated

Phase 2 – Calculation and Review (Owner: Payroll)

Payroll master updated for all changes
Gross pay computed with LOP pro-rating
Employee and employer PF calculated on PF wages
ESI computed for eligible employees (gross up to ₹21,000/month)
Professional tax applied as per state slabs
Labour Welfare Fund applied where applicable
TDS projected and computed for the month
Variance report against last month reviewed and explained
Headcount reconciled (opening + joiners − exits)
Negative or zero net pay cases investigated

Phase 3 – Approval and Payment (Owner: Finance)

Payroll summary and register approved by authorised signatory
Bank transfer file prepared and checked (maker-checker)
Salary credited and bank confirmation received
Failed transfers identified and re-processed
Held salaries documented with reasons

Phase 4 – Post-Payroll Compliance and Closure

PF ECR filed and challan paid by due date
ESI contribution paid by due date
Professional tax paid / return filed as per state schedule
TDS deposited by due date
Payslips published to employees
Payroll journal posted to accounts
Inputs, registers, approvals and challans archived
Issues logged for improvement next month

Prepared by
[HR Name]
Date: [Date]

Reviewed by
[Payroll Manager]
Date: [Date]

Approved by
[Finance Head Name]
Date: [Date]

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What this template includes

Pre-payroll input collection
Master data and new joiner checks
Calculation and variance review
Statutory deductions (PF, ESI, professional tax, LWF, TDS)
Approval and bank transfer
Post-payroll: challans, returns, payslips, records

When to use it

Running monthly payroll in-house
Training a new payroll executive
Supervising an outsourced payroll vendor
Preparing for internal or statutory audit

How to customise this template

1Add owner initials and target date against each item
2Insert your state's professional tax and LWF steps
3Remove ESI steps if no employees are covered
4Add plant-level steps such as overtime register sign-off

HR tips

Run a variance report against last month before approval
Use maker-checker for every bank file
Track statutory due dates in a compliance calendar
Archive inputs, registers and challans together each month

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Frequently asked questions

What are the steps in payroll processing?+

Collect inputs, update master data, calculate pay, check variances and statutory deductions, approve, transfer salaries, then deposit statutory dues, issue payslips and archive records.

How do I check payroll before release?+

Compare headcount and net pay with last month, review large variances, check new joiners and exits, and verify statutory deductions before approval.

Which statutory payments follow payroll?+

Typically PF and ESI contributions, professional tax, Labour Welfare Fund where applicable, and TDS, each deposited by its due date.

All 50 salary, payroll & compensation →

[Company Logo][Company Name]
PAYROLL RECONCILIATION CHECKLIST
Company:
[Company Name]
Period:
[Month YYYY] / [Quarter]
Prepared By:
[Payroll Executive]
Reviewed By:
[Finance Head Name]
1. Payroll Register to Bank
- Total net pay in register matches total bank debit
- Employee-wise credits match register (no missing or extra names)
- Failed or returned transfers identified and re-paid
- Off-cycle payments (F&F, advances) included
- Held salaries listed and carried forward
2. Payroll Register to General Ledger
- Gross salary expense matches GL salary accounts
- PF, ESI, PT and TDS payable balances match register deductions
- Employer contribution expense posted correctly
- Accruals for unpaid salary / bonus recorded
- Cost-centre allocation matches department totals
3. Statutory Filings
Checklist · Word
Payroll Reconciliation Checklist
Download .docx
[Company Logo][Company Name]
PAYROLL CHANGE REQUEST FORM
Request No.:
[Reference Number]
Date of Request:
[Date]
Payroll Cut-off:
[DD] of every month
Section A – Employee Details
Employee Name
Employee ID
Designation
Department
Work Location
UAN
PAN (last 4 characters)
Section B – Type of Change
- Bank account
- Salary / CTC revision
- Designation / grade
- Department / cost centre
- Work location / state (professional tax impact)
- Tax regime (old / new)
- Recurring deduction add / stop
- Name / personal details
- Other (specify)
Section C – Change Details
Form · Word
Payroll Change Request Form
Download .docx

Employee Name
Employee ID
Designation
Department
Work Location
UAN
PAN (last 4 characters)

[Company Logo][Company Name]

MONTHLY PAYROLL INPUT SHEET

Company / Unit:: [Company Name] / [Unit]
Payroll Month:: [Month YYYY]
Attendance Period:: [DD/MM/YYYY] to [DD/MM/YYYY]
Input Cut-off:: [DD/MM/YYYY]
Prepared By:: [HR Name]

1. Attendance, LOP and Overtime

Emp. ID	Employee Name	Paid Days	LOP Days	OT Hours	Night Shift Days	Remarks
[Employee ID]	[Employee Name]	[Number]	[Number]	[Number]	[Number]	[Remarks]
[Employee ID]	[Employee Name]	[Number]	[Number]	[Number]	[Number]	[Remarks]
[Employee ID]	[Employee Name]	[Number]	[Number]	[Number]	[Number]	[Remarks]

2. New Joiners

Emp. ID	Employee Name	Date of Joining	Annual CTC (₹)	UAN / New	Bank Details Received
[Employee ID]	[Employee Name]	[DD/MM/YYYY]	[Amount]	[UAN]	Yes / No
[Employee ID]	[Employee Name]	[DD/MM/YYYY]	[Amount]	[UAN]	Yes / No

3. Exits

Template · Word

Payroll Input Sheet

Download .docx

[Company Logo][Company Name]

PAYROLL APPROVAL SHEET

Company:: [Company Name]
Payroll Month:: [Month YYYY]
Proposed Pay Date:: [DD/MM/YYYY]
Prepared By:: [HR Name]

A. Department-wise Summary (₹)

Department	Headcount	Gross Pay	Employee Deductions	Net Pay	Employer PF/ESI	Total Cost
[Department]	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]
[Department]	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]
[Department]	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]
[Department]	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]
Total	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]

B. Month-on-Month Comparison

Item	Previous Month	Current Month	Variance	Explanation
Headcount	[Number]	[Number]	[Number]	[Joiners / exits]
Gross Pay (₹)	[Amount]	[Amount]	[Amount]	[Explanation]
One-time Payments (₹)	[Amount]	[Amount]	[Amount]	[Arrears / incentives]
Net Pay (₹)	[Amount]	[Amount]	[Amount]	[Explanation]

C. Statutory Payables (₹)

Template · Word

Payroll Approval Sheet

Download .docx

[Company Logo][Company Name]

PAYROLL EXCEPTION REPORT

Company:: [Company Name]
Payroll Month:: [Month YYYY]
Report Date:: [Date]
Prepared By:: [HR Name]

1. Exception Rules Applied

Net pay change of more than [Percentage]% versus last month
Negative or zero net pay
Missing or invalid PAN, UAN or bank details
Same bank account linked to more than one employee
Overtime hours above [Number] in the month
Gross pay above [Amount] or one-time payment above [Amount]
Salary paid to an employee whose last working day has passed

2. Exceptions Identified

Sr.	Emp. ID	Employee Name	Exception	Severity	Root Cause	Action Taken	Owner	Status
1	[Employee ID]	[Employee Name]	[Exception]	[High / Medium / Low]	[Root Cause]	[Action]	[Owner]	[Open / Closed]
2	[Employee ID]	[Employee Name]	[Exception]	[High / Medium / Low]	[Root Cause]	[Action]	[Owner]	[Open / Closed]
3	[Employee ID]	[Employee Name]	[Exception]	[High / Medium / Low]	[Root Cause]	[Action]	[Owner]	[Open / Closed]
4	[Employee ID]	[Employee Name]	[Exception]	[High / Medium / Low]	[Root Cause]	[Action]	[Owner]	[Open / Closed]

3. Summary

Report · Word

Payroll Exception Report

Download .docx

[Company Logo][Company Name]

SALARY STRUCTURE – GRADE-WISE

Company:: [Company Name]
Effective From:: [Date]
Version:: [Version Number]
Prepared By:: [HR Name]

1. Component Rules

Basic Salary: [Percentage]% of CTC
HRA: [Percentage]% of Basic (metro / non-metro as per policy)
Special Allowance: balancing figure after all fixed components
Employer PF: 12% of Basic + DA, subject to wage ceiling rules as per policy
Employer ESI: 3.25% of gross for employees earning up to ₹21,000/month
Gratuity provision: as per company policy, payable after 5 years' continuous service

2. Monthly Structure by Grade (₹)

Component	Grade [G1]	Grade [G2]	Grade [G3]	Grade [G4]
Basic Salary	[Amount]	[Amount]	[Amount]	[Amount]
House Rent Allowance (HRA)	[Amount]	[Amount]	[Amount]	[Amount]
Conveyance / Transport Allowance	[Amount]	[Amount]	[Amount]	[Amount]
Special Allowance	[Amount]	[Amount]	[Amount]	[Amount]
Gross Salary (A)	[Amount]	[Amount]	[Amount]	[Amount]
Employer PF	[Amount]	[Amount]	[Amount]	[Amount]
Employer ESI (if applicable)	[Amount]	[Amount]	N/A	N/A
Gratuity Provision	[Amount]	[Amount]	[Amount]	[Amount]
Employer Contributions (B)	[Amount]	[Amount]	[Amount]	[Amount]
Monthly CTC (A + B)	[Amount]	[Amount]	[Amount]	[Amount]
Annual CTC	[Amount]	[Amount]	[Amount]	[Amount]

3. Estimated Deductions and In-hand (₹ per month)

Template · Word

Salary Structure Format

Download .docx

[Company Logo][Company Name]

ANNEXURE – CTC BREAKUP

Employee / Candidate Name:: [Employee Name]
Designation:: [Designation]
Department:: [Department]
Work Location:: [Work Location]
Annual CTC:: [CTC]
Effective Date:: [Date of Joining]

A. Fixed Earnings

Component	Monthly (₹)	Annual (₹)
Basic Salary	[Basic Salary]	[Amount]
House Rent Allowance	[HRA]	[Amount]
Leave Travel Allowance	[Amount]	[Amount]
Special Allowance	[Amount]	[Amount]
Total Gross Salary (A)	[Amount]	[Amount]

B. Employer Contributions

Component	Monthly (₹)	Annual (₹)
Employer Provident Fund (12% of Basic)	[Amount]	[Amount]
Employer ESI (3.25%, if applicable)	[Amount]	[Amount]
Gratuity Provision	[Amount]	[Amount]
Total Employer Contributions (B)	[Amount]	[Amount]

C. Variable Pay (Target)

Template · Word

CTC Breakup Format

Download .docx

[Company Logo][Company Name]

ANNUAL COST TO COMPANY STATEMENT

Ref. No.:: [Reference Number]
Date:: [Date]
Financial Year:: [FY YYYY-YY]
Employee Name:: [Employee Name]
Employee ID:: [Employee ID]
Designation / Department:: [Designation] / [Department]
Date of Joining:: [Date of Joining]
UAN:: [UAN]

Dear [Employee Name],
This statement summarises the total amount [Company Name] invested in your employment during the financial year [FY YYYY-YY]. It includes cash salary as well as contributions and benefits that do not appear in your monthly in-hand pay.

Part A – Salary Paid

Component	Approved Annual (₹)	Actual Paid (₹)
Basic Salary	[Amount]	[Amount]
House Rent Allowance	[Amount]	[Amount]
Special Allowance	[Amount]	[Amount]
Other Allowances	[Amount]	[Amount]
Bonus / Incentives Paid	[Amount]	[Amount]
Arrears Paid	[Amount]	[Amount]
Total Salary Paid (A)	[Amount]	[Amount]

Part B – Employer Statutory Contributions

Component	Approved Annual (₹)	Actual (₹)
Employer PF (EPF + EPS)	[Amount]	[Amount]
Employer ESI (if covered)	[Amount]	[Amount]
Gratuity Provision	[Amount]	[Amount]
Labour Welfare Fund (employer share, if applicable)	[Amount]	[Amount]
Total Contributions (B)	[Amount]	[Amount]

Report · Word

Cost to Company Statement

Download .docx

Payroll Processing Checklist

Preview of the checklist

Phase 1 – Pre-Payroll Inputs (Owner: HR Operations)

Phase 2 – Calculation and Review (Owner: Payroll)

Phase 3 – Approval and Payment (Owner: Finance)

Phase 4 – Post-Payroll Compliance and Closure

What this template includes

When to use it

How to customise this template

HR tips

Hire top talent from BetterJobs

Frequently asked questions

Related HR templates