Human Resources Outsourced research
Payroll Preparation and the Four-Eyes Review
Why payroll preparation benefits from a separate preparer and reviewer, with an evidence trail for changes.
Published 2026-08-08 · 10 sources
Research question
How can a small HR team reduce preventable payroll preparation errors? Separate data preparation from approval and make changes traceable.
Methodology
This report uses payroll recordkeeping guidance and internal-control principles to define a minimum review pattern. It does not provide tax or payroll advice.
Key statistic
The U.S. Department of Labor requires employers to keep specified payroll records for covered employees. The practical implication is to design the workflow so records are created as work happens.
Review pattern
The preparer reconciles starters, leavers, time, leave, approved changes, and exceptions. A separate reviewer checks totals and high-risk changes before submission. Both people sign the review log.
Implementation takeaway
Use a controlled change queue, never a last-minute informal message. Escalate missing approvals, unexplained variance, duplicate entries, and requests to bypass the normal cutoff.
Sources
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