Month End Payroll Accrual

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The Month End Payroll Accrual sheet is used to make one of the most important
NOT make. Depending on how often you process payroll, this may or may not b
You do NOT need to make this correction if you:

- Process payroll semi-monthly (24 pay periods per year, 2 per month, one on th
month accounting. Some restaurants, mostly the corporate chains, use 4 week a
very accurate P&L's, it is a very advanced strategy and can be very confusing and

You DO need to make this correction if you:

-Process payroll weekly or bi-weekly (52 or 26 pay periods per year, usually endi
Thursday of the following week). Believe it or not, through for accounting reaso
employees, so a HUGE percentage of restaurant use bi-weekly accounting.

Here is the problem, your payroll is never accurate. 2 months of the year have 3
that have 2 pay periods, are paying employees for 28 days of work, on 30 or 31 d
of labor for the same 30 or 31 days of sales. So for 10 months of the year your la
these months (on paper), but for 2 months of the year your labor is OVERSTATED
camper.

So how can we fix this? 2 simple general journal entries. One on the last day of
dollars to the month, and puts next months labor dollars into an accrued wages
Then on the first day of the month, you reverse the transaction and move the m
they get included on the proper P&L.

It looks and might even sound confusing, but if you break it down and do it once
Instructions:
camper.

So how can we fix this? 2 simple general journal entries. One on the last day of
dollars to the month, and puts next months labor dollars into an accrued wages
Then on the first day of the month, you reverse the transaction and move the m
they get included on the proper P&L.

It looks and might even sound confusing, but if you break it down and do it once
Instructions:

Please note: that the bottom of this workbook are 3 tabs, one is the ma
sheet.

>>If any sheet in this workbook is locked, please use code TRB to unloc
If your Payroll accounts DO NOT match the one given here, you can unlock the sh

Step 1
1) Date of Accrual - The Month and Year the accrual is taking place
2) Final Payroll Date - The date that will be on the payroll checks (date they will be
3) Payroll Period Ending Date - Date payroll period ended
4) Number of day in Payroll Period - If you are processing payroll bi-weekly, this wi
5) Number of days to accrue - Enter the number of days of the pay period that fall
In the example I used we are adjusting payroll for July of 2013. The Payroll check d
ending on Sunday, August 4th. both of 2013. There are 14 days in the semi-month
Wednesday July 31st fall in July.

Step 2
1) Enter your payroll data (from your payroll summary sheet) into the white boxes
Step 3
1) Make the generated general journal entries into your accounting program, with

Step 4
1) Make the generated general journal entries into your accounting program, with

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COPYRIGHT - please note that the information contained in this "entire" workshee
NOT be duplicated, sold or distributed without the express written consent of Aut
the extent of the law!
COPYRIGHT - please note that the information contained in this "entire" workshee
NOT be duplicated, sold or distributed without the express written consent of Aut
the extent of the law!
TRAINING!
of the most important adjustments to your accounting that most restaurant owners do
this may or may not be a correction you need to make.

per month, one on the 15th. and one on the last day of the month). Assuming you use
te chains, use 4 week accounting. While I love the ability to compare numbers and get
be very confusing and expensive to set up for accounting and bookkeeping.

per year, usually ending every other Sunday, with checks being issues on Wed. or
h for accounting reasons this make no sense at all, it is far easier for owners and
ekly accounting.

nths of the year have 3 pay periods, while 10 months of the year have 2. The months
of work, on 30 or 31 days of sales. While the other two months are paying on 42 days
nths of the year your labor is UNDERSTATED by 7%-10%, AWESOME... Owners love
ur labor is OVERSTATED by 35% - 41%, those are the months you are not a happer

One on the last day of the month, that applies the appropriate percentage of labor
nto an accrued wages account (short term liability), so it does not show up on the P&L.
ction and move the money from accrued wages, to the appropriate payroll accounts, so

it down and do it once or twice, it makes perfect sense!

One on the last day of the month, that applies the appropriate percentage of labor
nto an accrued wages account (short term liability), so it does not show up on the P&L.
ction and move the money from accrued wages, to the appropriate payroll accounts, so

it down and do it once or twice, it makes perfect sense!

3 tabs, one is the master sheet, one is an example sheet and this instructions

e code TRB to unlock it. <<

you can unlock the sheet and make the adjustments yourself.

g place
hecks (date they will be issued to employees)

ayroll bi-weekly, this will be 14, if you process payroll weekly this will be 7.
the pay period that fall into the month you are adjusting.
13. The Payroll check dates will be Wednesday, August 7th with the payroll period
days in the semi-month pay period, but only 10 of those days Monday July 22nd -

t) into the white boxes.

counting program, with the last day of the month as the date!

counting program, with the first day of the month as the date!

this "entire" worksheet is the property of Authentic Restaurant Concepts, INC. and can
written consent of Authentic Restaurant Concepts, INC. Violators will be persecuted to
this "entire" worksheet is the property of Authentic Restaurant Concepts, INC. and can
written consent of Authentic Restaurant Concepts, INC. Violators will be persecuted to
urant owners do

suming you use

umbers and get
ping.

on Wed. or
ners and

. The months
ying on 42 days
wners love
a happer

ge of labor
w up on the P&L.
roll accounts, so
 ge of labor
w up on the P&L.
roll accounts, so

instructions

7.

oll period
y 22nd -

s, INC. and can

persecuted to
s, INC. and can
persecuted to
Month End Payroll Accrual
All Rights Reserverd by Authentic Restaurant Concepts, INC.
www.TheRestaurantBoss.com

Date of Accrual
Payroll Date
Payroll Period Ending on
Number of days in entire Payroll Period
Number of days falling into current period
Percentage falling into current period 0

Chefs
Line Cooks
Prep Cooks
Dishwashers
Servers
Bussers
Host
Bartenders
Sub Total
Employer FICA Tax
Federal Unemployment Tax
State Unemployment Tax
Sub Total
TOTAL

General Journal Entries for Payroll (End of Period)

Accrual Date: Last day of month

Chefs
Line Cooks
Prep Cooks
 Dishwashers
Servers
Bussers
Host
Bartenders
Employer FICA Tax
Federal Unemployment Tax
State Unemployment Tax
Accrued Wages
Accrued Payroll Taxes
TOTAL

General Journal Entries for REVERSING Payroll (Beginning of next Period)

REVERSAL Date: First day of next month

Chefs
Line Cooks
Prep Cooks
Dishwashers
Servers
Bussers
Host
Bartenders
Employer FICA Tax
Federal Unemployment Tax
State Unemployment Tax
Accrued Wages
Accrued Payroll Taxes
TOTAL
 Payroll Period Ending on:
Payroll to Accrue

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00 $0.00
$0.00
$0.00
$0.00
$0.00 $0.00
$0.00 $0.00

DEBIT CREDIT

$0.00
$0.00
$0.00
 $0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00 $0.00

ning of next Period)

DEBIT CREDIT

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00 $0.00
Month End Payroll Accrual
All Rights Reserverd by Authentic Restaurant Concepts, INC.
www.TheRestaurantBoss.com

STEP 1
Date of Accrual July-13
Payroll Date August 7, 2013
Payroll Period Ending on Sunday, August 4, 2013
Number of days in entire Payroll Period 14
Number of days falling into current period 10
Percentage falling into current period 71.43%

STEP 2
Chefs
Line Cooks
Prep Cooks
Dishwashers
Servers
Bussers
Host
Bartenders
Sub Total
Employer FICA Tax
Federal Unemployment Tax
State Unemployment Tax
Sub Total
TOTAL

STEP 3
General Journal Entries for Payroll (End of Period)

Accrual Date: Last day of month Wednesday, July 31, 2013

Chefs
Line Cooks
 Prep Cooks
Dishwashers
Servers
Bussers
Host
Bartenders
Employer FICA Tax
Federal Unemployment Tax
State Unemployment Tax
Accrued Wages
Accrued Payroll Taxes
TOTAL

STEP 4
General Journal Entries for REVERSING Payroll (Beginning of next Period)

REVERSAL Date: First day of next month Thursday, August 1, 2013

Chefs
Line Cooks
Prep Cooks
Dishwashers
Servers
Bussers
Host
Bartenders
Employer FICA Tax
Federal Unemployment Tax
State Unemployment Tax
Accrued Wages
Accrued Payroll Taxes
TOTAL
 Payroll Period Ending on:
Payroll to Accrue
Sunday, August 4, 2013
$4,400.00 $3,142.86
$3,600.00 $2,571.43
$1,800.00 $1,285.71
$1,650.00 $1,178.57
$1,200.00 $857.14
$875.00 $625.00
$1,200.00 $857.14
$980.00 $700.00
$15,705.00 $11,217.86
$1,660.00 $1,185.71
$185.00 $132.14
$390.00 $278.57
$2,235.00 $1,596.43
$17,940.00 $12,814.29

Wednesday, July 31, 2013

DEBIT CREDIT

$3,142.86
$2,571.43
 $1,285.71
$1,178.57
$857.14
$625.00
$857.14
$700.00
$1,185.71
$132.14
$278.57
$11,217.86
$1,596.43
$12,814.29 $12,814.29

ning of next Period)

Thursday, August 1, 2013

DEBIT CREDIT

$3,142.86
$2,571.43
$1,285.71
$1,178.57
$857.14
$625.00
$857.14
$700.00
$1,185.71
$132.14
$278.57
$11,217.86
$1,596.43
$12,814.29 $12,814.29