Future Business Leaders of America (FBLA) Accounting Practice Test

Where is the individual payroll record for each employee documented?

1. Payroll Register

2. Employee's Earnings Record

3. Tax Records

4. Deduction Sheet

The correct answer is: Employee's Earnings Record

The individual payroll record for each employee is documented in the Employee's Earnings Record. This record provides detailed information about an employee's salary or wages, hours worked, deductions, and any additional earnings during a specific pay period. It serves as a comprehensive reference that tracks the earnings and deductions for each employee over time, allowing for accurate payroll processing and ensuring compliance with tax obligations and reporting. The Employee's Earnings Record is crucial in maintaining organized payroll data, as it eliminates confusion that could arise from using broader documents. It ensures that each employee's records are well-maintained and accessible for auditing, verification, and reporting purposes. This level of detail is essential for both the employer and the employee to understand their financial responsibilities and entitlements related to their employment.