Payroll audit and exception checklist workbook

What the payroll audit and exception checklist workbook does

A payroll check is only useful if it is done and recorded. This workbook lists the checks an internal reviewer or owner should make each month, from headcount and bank details to statutory remittances, with a result, the evidence and the person responsible for each, and calculates the pass rate so you can see whether payroll controls are improving.

Who it is for

Owners, finance managers and internal auditors who review payroll, and payroll officers who want a documented routine.

How to use the workbook

1. List each check and choose its area.
2. Mark each as pass, fail or not applicable.
3. Record where the evidence is kept and who will fix any failure.
4. Read the pass rate and repeat the checks next month.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Check areas from headcount to remittances
• Pass, fail or not applicable results
• Evidence and owner for each check
• Pass rate at the top
• Summary of results with a chart

The workbook has these sheets: Instructions, Checks, By result. The main table has the columns Area; Check; Result; Evidence; Owner; Fix by; Counted. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Have someone who does not prepare payroll do the checks.
• Never mark a pass without evidence.
• Fix a failed check before the next pay run.
• Keep each month's completed checklist.

Why keep this record

Staff records go wrong in small, repeated ways: a figure typed twice, a deadline forgotten, a promise that nobody wrote down. A tidy workbook that everyone uses the same way removes most of those problems. It also gives you something to show an employee, an auditor or a labour officer when a question comes up months later, and it makes the next payroll quicker because the facts are already in one place.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Payroll records are personal data and tax records at once, so keep the file somewhere only the people who need it can open, and keep each month's copy for at least five years. Statutory rates such as NSSF limits and the Housing Levy change, so check the Rates sheet against the official source before you rely on a figure.

Read how to run payroll for a small business for the wider picture. See more payroll templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Guide: How to run payroll for a small business in Kenya
• Guide: How PAYE is calculated in Kenya, step by step
• Guide: NSSF contributions explained: tiers, limits and what you pay
• Another template: Annual PAYE and payroll summary
• Another template: Annual leave balance calculator
• Another template: Annual leave planner and register

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