Template
Payroll Journal Entry Template
Global payroll
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Easily record, reconcile, and post payroll journal entries with our free template.
If you manage payroll manually, you know how time-consuming it can be to balance debits and credits, track deductions, and prepare accurate general ledger entries. This free Payroll Journal Entry Template helps you simplify payroll accounting with:
- Pre-built formulas that calculate totals automatically
- A structured format you can align with your accounting system
- Full customization to match your chart of accounts and workforce needs
Key features of the free payroll journal entry template
This template includes the most important elements of a payroll entry, with space for both employee and employer details:
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Journal entry and payment dates: Record when payroll is posted and when employees are paid.
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Employee ID and department: Track payroll across multiple entities, teams, or locations.
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Earnings breakdown: Regular pay, overtime, and bonuses.
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Automatic totals: Formulas calculate total earnings, deductions, and employer contributions.
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Tax withholding columns: Federal, state, Social Security, Medicare, and other deductions (customizable to your local requirements).
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Debit and credit accounts: Map payroll activity directly to your chart of accounts.
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Audit trail: Payment method, transaction ID, and notes for adjustments.
How to use the payroll journal entry template
Follow these simple steps to get started:
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Customize your accounts: Update debit and credit columns to match your general ledger setup.
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Input payroll data: Enter employee details, earnings, and tax/deduction values from your payroll provider.
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Validate totals: Confirm debits equal credits for each payroll run.
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Post to your system: Export or reference the data when creating payroll journal entries in your accounting software.
This ensures your payroll debits and credits are balanced and ready for reconciliation. Read our guide on how to record a payroll journal entry to learn more.
Payroll journal entry example
Here is a sample payroll journal entry:
| Item | Input |
|---|---|
| Journal Entry Date | 01/15/2025 |
| Payment Date | 01/15/2025 |
| Employee ID | 1001 |
| Employee Name | Jane Smith |
| Entity | US Inc |
| Department | Marketing |
| Regular Pay | 2,000.00 |
| Overtime Pay | 200 |
| Bonus Pay | 500 |
| Total Earnings | 2,700.00 |
| Fed Tax | 400 |
| State Tax | 100 |
| SS Tax | 167.4 |
| Medicare Tax | 39.15 |
| Other Deductions | 50 |
| Total Deductions | 756.55 |
| ER SS | 167.4 |
| ER Medicare | 39.15 |
| FUTA | 21.6 |
| SUTA | 81 |
| Total ER Taxes/Contrib | 309.15 |
| Net Pay | 1,943.45 |
| Currency | USD |
| Debit Account | Wages Expense |
| Credit Account | Cash / Payroll Payable |
| Payment Method | Direct Deposit |
| Check #/Txn ID | TXN-12345 |
| Notes | January payroll |
Automate payroll journal entries with Deel
Managing payroll manually works in the short term, but automation saves time, reduces errors, and ensures compliance. With Deel Payroll, you can:
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Automatically generate GL journal entries with every pay run
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Customize your chart of accounts and map payroll items in a few clicks
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Stay compliant in 130+ countries with local tax and labor law expertise
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Access real-time gross-to-net calculations that update instantly
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2,000+ in-house experts for HR, payroll, and legal compliance
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Receive proactive compliance alerts to keep you ahead of regulatory changes
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Use advanced reporting tools for payroll insights across your global workforce
According to the 2025 Forrester TEI Study, Deel Payroll delivers 67% ROI for clients. Book a free 30-minute demo to learn more about how you can automate payroll admin today.
FAQs
What is a payroll journal?
A payroll journal entry is the formal accounting record that documents all payroll-related expenses and obligations within a company’s general ledger (GL). By directly tying payroll activity to financial reporting, it helps businesses:
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Streamline month-end and year-end closing processes
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Accurately account for payroll taxes, reducing the risk of compliance issues
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Monitor labor costs and employer liabilities to improve budgeting and forecasting
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Detect errors early, minimizing payroll discrepancies
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Maintain a clear audit trail that supports payroll audits and compliance reviews
To create a complete payroll journal entry, two categories of information are required: employee compensation and deductions, and employer-paid contributions and liabilities.
What is the payroll journal template file type? (.DOCX, Excel, Google Sheets, etc.)
This payroll tax journal template will be delivered as a Google Sheet. You can easily convert the template to your desired format by going to File > Download > Select your desired format, such as an Excel spreadsheet.
For a payroll journal template in the .DOCX file type (Microsoft Word document), download the template as an Excel spreadsheet, and then copy the data into a Word document.
Is payroll a credit or debit?
Payroll accounting involves both debits and credits, depending on the transaction.
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Debits: Payroll expenses such as wages, salaries, employer taxes, and benefits are debited because they represent costs to the business.
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Credits: Liabilities such as payroll payable, tax withholdings, and cash (once wages are paid out) are credited because they reduce assets or create obligations.
Example:
- Debit: Wages Expense $50,000
- Credit: Cash/Bank $45,000
- Credit: Payroll Taxes Payable $5,000
What is the general ledger of payroll?
The general ledger (GL) of payroll is the central accounting record where all payroll-related transactions are posted. It provides a detailed breakdown of:
- Payroll expenses (wages, salaries, overtime, bonuses, benefits)
- Employee withholdings (federal, state, Social Security, Medicare, retirement contributions)
- Employer contributions (payroll taxes, benefits, insurance)
- Cash or liability accounts (e.g., wages payable, payroll taxes payable)
Together, these entries ensure payroll activity is accurately reflected in the company’s financial statements. The GL allows finance teams to reconcile payroll, meet compliance obligations, and generate accurate financial reports.
Can I automate payroll journal entries?
Yes. Payroll software like Deel automates journal entry creation, maps payroll items to your GL accounts, and generates compliant reports.