What it is
Accrued compensation has three parts: paid time off, wages earned but not yet paid and bonuses. Each rests on a policy and a calculation.
The workbook accrues PTO by employee with caps and payout policy, wages by unpaid workdays and bonuses by target, achievement and share earned, adds employer cost, and compares the total with the ledger.
When to use it
- Year-end close of accrued liabilities.
- Auditing accrued compensation.
- Changing PTO policy.
What’s inside
- PTO tab by employee
- Wages tab by group
- Bonus tab by plan
- Summary tab with ledger tie-out
Standard cited
This template follows AU-C 330. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 330 explained.
Questions
Which PTO is accrued?
The workbook accrues hours up to the carryover cap, except PTO classed Not vested or Use or lose with no carryover, which is excluded at a year end. Policy and state law decide when PTO is vested or payable; confirm with counsel.
Is the employer cost rate pre-filled?
No. Enter it from your payroll tax and benefit rates.
Related templates
- Audit Program: Payroll
- Payroll Audit Checklist
- Payroll Gross-to-Net Recalculation Workpaper
- Search for Unrecorded Liabilities Workpaper
Last updated 11/06/2026. All free templates.