Payroll journal entry workbook

What the payroll journal entry workbook does

Payroll must reach the accounts correctly. Type the month's totals for gross pay, PAYE, NSSF, SHIF, the Housing Levy and any other deductions, and the workbook builds the journal: expenses debited, liabilities credited, net pay credited, with a check that the debits equal the credits and the account names ready to copy into your books.

Who it is for

Accountants, bookkeepers and finance managers who post payroll to the ledger each month and want a consistent, checked journal instead of building one from scratch.

How to use the workbook

1. Type the month and the payroll totals from your payroll report.
2. Check that net pay equals the amount you will pay staff.
3. Adjust the account names to match your chart of accounts.
4. Copy the debit and credit amounts to your accounting system once the check says Balanced.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Journal built from eight payroll totals
• Employer NSSF and Housing Levy costs included
• Debit and credit totals with a balance check
• Editable account names
• Net pay worked out from the deductions

The workbook has these sheets: Instructions, Journal. The main table has the columns Account; Debit; Credit. 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

• Take the totals from the payroll report that you approved.
• Post the journal in the month the salaries relate to.
• Match the account names to your own chart of accounts.
• Keep the journal with the payroll file as your audit trail.

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 planner and register
• Another template: Benefits and allowances register

Need something different? Request a custom template, browse all guides or see every Excel template.