In payroll accounting, what are payroll source documents and which examples are typically included in this category?

Introduction / Context:
Payroll source documents are the starting point for every accurate payroll calculation. Interviewers often ask this question to see whether a candidate understands which original records support payroll entries in the system. Without proper source documents, payroll figures will not be reliable, and the organisation could face disputes with employees and compliance issues with regulators.

Given Data / Assumptions:

• The focus is on payroll accounting inside an organisation.
• We are dealing with primary or original records, not summary reports produced after processing.
• Payroll must be supported by written or electronic authorisations that show hours worked, approved absences, pay rates, and changes to employee details.
• Examples include time records, attendance, and HR authorisation forms.

Concept / Approach:
Source documents are any original records that provide evidence and authority for a transaction. In payroll, they are the documents that justify why an employee is paid a certain amount in a given period. Typical payroll source documents include time sheets for hourly staff, attendance records from biometric or swipe systems, overtime authorisation forms, leave applications, new hire forms, salary revision letters, and forms for changes in bank details or deductions. These documents provide the data that payroll staff key into the system. They are different from reports like payroll registers or general ledger statements, which are outputs of the payroll process, not inputs.

Step-by-Step Solution:
Step 1: Recall the definition of a source document as an original record that initiates or supports a transaction.Step 2: Apply this to payroll. Ask which documents provide raw data for hours, days, and pay rates before payroll is run.Step 3: Identify examples: signed time sheets, attendance logs, overtime approval notes, and HR forms for hiring, promotion, or salary revision.Step 4: Compare these examples with the answer choices and find the option that clearly mentions such original records and authorisations.Step 5: Select option A, because it correctly describes payroll source documents as original records that authorise payroll calculations.

Verification / Alternative check:
In a real audit, auditors do not rely only on payroll reports. They trace a few employees from the payroll register back to their time sheets, attendance records, and HR authorisation letters to verify that payments are justified. This proves that documents like time sheets and HR change forms are treated as source documents. Reports such as the monthly payroll register or the trial balance are important, but they are not the original source of the information; rather, they summarise what has already been authorised through earlier documents.

Why Other Options Are Wrong:
Option B mentions the monthly payroll register, which is a summary generated after the payroll process and is therefore an output, not a source document. Option C refers to external audit reports; these are independent evaluations, not documents that authorise payroll entries. Option D refers to the general ledger trial balance, which aggregates all accounts and again is a summary level financial report, not a payroll source document.

Common Pitfalls:
Candidates sometimes confuse input documents with output reports and assume anything printed from the system is a source document. Another common mistake is to overlook HR forms that change employee status or pay, even though these have a direct impact on payroll. To avoid confusion, always ask whether a document comes before the payroll calculation and provides the authority or data, or whether it comes after as a summary. Only the first type qualifies as a payroll source document.

Final Answer:
Payroll source documents are original records such as time sheets, attendance records, leave applications, and new hire or change forms that authorise payroll calculations.