What is a payroll sheet?
Published
A payroll sheet is a monthly table showing employee earnings, deductions, and net salary payable. It supports internal review, salary transfers, payroll journal entries, and wage protection requirements.
The examples on this page use a fictional business (Al Waha Office Supplies). Figures are illustrative only and are not real business data or sector benchmarks.
Short answer
A payroll sheet is the monthly record showing how each employee's net salary was calculated. Knowing the bank transfer amount is not enough. You need the basic salary, allowances, deductions, advances, and social insurance that produced it.
Main fields
| Field | Meaning |
|---|---|
| Basic salary | Contracted base wage |
| Allowances | Housing, transport, other allowances |
| Deductions | Social insurance, advances, absence, lawful penalties |
| Net salary | Amount transferred to employee |
| Bank account or IBAN | Transfer details |
Worked example
An employee has SAR 8,000 basic salary, SAR 2,000 housing allowance, SAR 500 transport allowance, SAR 900 social insurance deduction, and SAR 300 advance deduction.
Gross earnings = 8,000 + 2,000 + 500 = SAR 10,500Total deductions = 900 + 300 = SAR 1,200Net salary = 10,500 - 1,200 = SAR 9,300
Simplified payroll entry
| Account | Debit | Credit |
|---|---|---|
| Salaries and wages expense | 10,500 | |
| Social insurance payable | 900 | |
| Employee advances | 300 | |
| Bank | 9,300 |
Checks before approving payroll
| Check | Purpose |
|---|---|
| Compare with prior month | Find unexplained changes |
| Match IBANs | Prevent wrong transfers |
| Review joiners and leavers | Avoid paying ineligible employees |
| Match net pay to bank file | Prevent transfer differences |
Example 2: employee leaving mid-month
An employee with SAR 9,000 salary leaves mid-month and is entitled to 15 days. If the month has 30 days, basic entitlement = 9,000 × 15 ÷ 30 = SAR 4,500, then allowances and deductions follow company policy and applicable rules.
Useful payroll columns
| Column | Why add it |
|---|---|
| Employee number | Prevents confusion between similar names |
| Cost center | Allocates salaries to branches or projects |
| Work days | Explains partial salaries |
| Deduction notes | Makes deductions explainable |
Accounting effect
The payroll sheet is not only an HR document. It is the source for payroll entries, bank transfer files, and reviews of accrued expenses or WPS compliance.
Frequently asked questions
Is a payroll sheet the same as a bank statement?
No. The payroll sheet calculates entitlement. The bank statement proves payment.
Should payroll sheets be kept?
Yes, because they support payroll entries, transfers, and compliance.
Is a payroll sheet enough for WPS?
No. WPS usually requires platform submission or a file that follows the required format.