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Master file validation ensures only active, authorized employees are included in payroll runs. Positive Pay prevents check fraud, calendars manage scheduling, and W-2s are year-end reports. APA stresses master file integrity as a fundamental payroll control to safeguard against fraud and errors.

Payroll bank account reconciliation ensures payroll disbursements match bank records, preventing fraud, errors, or duplicate payments. APA emphasizes reconciliation as a key audit control, providing assurance that payroll transactions are accurate, authorized, and compliant with internal controls.

Payroll Expense is debited to recognize the cost of employee wages and employer taxes. Cash and Payroll Liabilities are credited when funds are disbursed or withheld. Retained Earnings is not directly used in payroll entries. APA emphasizes that accurate journal entries ensure compliance with GAAP, provide transparency in financial reporting, and support audit readiness.

A payroll register is an internal report that provides a detailed summary of employee payroll for a specific pay period. It includes gross pay, deductions (such as taxes, benefits, and garnishments), and net pay for all employees. Unlike Form W-2, which is provided annually to employees, or IRS submissions such as Form 941, the payroll register is an employer’s tool for tracking payroll activity and reconciling payroll accounts. It helps payroll administrators ensure accuracy before disbursing funds and provides an audit trail for compliance and reporting. APA highlights payroll registers as essential management tools that improve accuracy, reduce errors, and ensure transparency in payroll operations. The payroll register also supports financial reconciliation by linking payroll activity to general ledger accounts.

Severance pay is classified as supplemental wages under IRS rules. Other examples include bonuses, commissions, and retroactive pay. Regular salary, overtime, and vacation pay are considered regular wages. APA stresses that payroll professionals must apply the correct IRS withholding methods (aggregate or 22% flat rate) for supplemental wages to ensure compliance.