What it is
A payroll recalculation test follows an employee from gross pay to net pay and checks the arithmetic and the configuration behind it.
The workbook recomputes Social Security (with the wage base limit), Medicare and net pay from your inputs, flags differences above a tolerance and ties the register to the general ledger. Rates and the wage base are inputs you take from current IRS guidance.
When to use it
- Testing a sample of employees in a payroll audit.
- Checking payroll system configuration changes.
- Supporting the wages and payroll tax accruals.
What’s inside
- Sample tab with register amounts and recomputed amounts
- Summary tab with exception rate and tie-outs
- Wage base checks
- Legend tab
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
Are rates pre-filled?
No. They change by year, so you enter them from the current IRS publication.
Does it test income tax withholding?
No. Federal and state withholding come from the register and need separate testing against tables and withholding forms.
Related templates
- Audit Program: Payroll
- Payroll Testing Workpaper
- Payroll Tax Reconciliation (Form 941 to GL)
- Accrued Compensation and PTO Accrual Workpaper
Last updated 11/06/2026. All free templates.