What it is
A staffing firm pays workers weekly and bills customers later, so at any period end it owes wages for days worked and has earned revenue it has not yet invoiced. Both are cutoff problems. This workbook calculates the accrual for unpaid days by pay group and the unbilled revenue by customer, with a trace to billing after period end.
No rates are prefilled. You enter the period end date, the employer tax rate and the workers compensation rate per $100 of payroll, and the workbook applies them. The Tie-out tab agrees each calculated amount to the ledger.
When to use it
- At each period end, when the pay calendar does not end on the last day of the period.
- During the audit of revenue and payroll for any staffing, PEO or contract labor business.
- When customers dispute time and the unbilled balance is aging.
What’s inside
- Parameters tab: period end, employer tax rate, workers compensation rate and test threshold
- Accrued payroll tab: unpaid days by pay group with wage, tax and workers compensation accruals
- Unbilled tab: hours, rate, unbilled revenue and trace to subsequent billing
- Tie-out tab for accrued wages, taxes, workers compensation and unbilled receivables
Standard cited
This template follows ASC 606. 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.
Questions
Should revenue be reported gross or net?
It depends on whether the firm is principal or agent for the workers. Firms acting as principal report gross bill rates and firms acting as agent report net. Document the conclusion before using gross bill rates here.
How do I test the unbilled amount?
Trace it to invoices issued after period end for the same time and compare the amounts. A difference above your threshold points to a rate, a rounding rule, a disputed time entry or a billing delay.
What rate should be used for workers compensation?
The rate per $100 of payroll for the class codes in use, from the insurance policy or premium audit. Use a blended rate or run one row per class code.
Related templates
- Payroll Testing Workpaper
- Cutoff Testing Workpaper (Sales, Purchases, Inventory)
- Audit Program: Staffing Firm
- Payroll Tax Reconciliation (Form 941 to GL)
Last updated 11/05/2026. All free templates.