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.