Payroll control account
A payroll control account summarises payroll amounts and their settlement so the employer can reconcile earnings, deductions, employer contributions and payments. Systems may use it as a clearing account with separate liability accounts for each recipient. It should reconcile to payroll reports, bank payments and amounts still owed. The ledger structure can vary while the total expense and obligations remain the same.
Worked example
Debit gross staff expense $10,000 and credit payroll control $10,000. Debit payroll control $10,000 and credit net wages payable $8,000 and deductions payable $2,000. Record employer contributions separately.
Common mistake
A control account does not make net pay equal to staff expense. Investigate unexplained residual balances rather than forcing them to zero.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
Related terms
Also called: Wages control account