Reading your payroll register like a CFO
The payroll register is the most detailed record of labor cost you have. Five checks catch most problems.
- 01
Gross to net
Confirm gross pay minus taxes and deductions equals net pay for every employee and in total.
- 02
Employer taxes
Employer Social Security, Medicare, FUTA, and SUTA are real costs. Watch SUTA rate changes each January.
- 03
Unusual variances
Compare to the prior period by department. Large swings usually mean overtime, bonuses, or setup errors.
- 04
Deductions and liabilities
Benefit, 401(k), and garnishment deductions must match what is remitted to carriers, providers, and agencies.
- 05
Burdened labor cost
Add employer taxes, benefits, and workers’ comp to wages to see true cost by job, location, or department.
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor.