Payroll and Your Income Statement

To determine your firm’s gross payroll amount, review your Income Statement.

Add all of the amounts in the Labor and Job Cost Variance accounts on the Income Statement, as shown in the following table:

Account Amount
Direct Labor - Principal 3,000.00
Direct Labor - Employees 3,536.00
Indirect Labor - Principles 706.00
Indirect Labor- Employees 1,390.00
Job Cost Variance 132.00

Total Payroll

8,500.00

You can perform this calculation for either the current period or for the year to date.