---
title: "Payroll Liability"
slug: "payroll-liability"
description: "The Accrued Payroll Account tracks daily labor accruals from DSS. Accruals reverse when a payroll JE posts, netting the GL account to zero."
updated: 2026-08-06T14:13:07Z
published: 2026-08-06T14:13:07Z
canonical: "docs.restaurant365.com/payroll-liability"
stale: true
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Payroll Liability

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-9DIOAL7C.png)

The Accrued Payroll Account drop-down on the Labor Estimates tab of the [Location record](/doc/docs/legal-entities-location-record) specifies the GL account used to record payroll liability in Restaurant365. This account is credited daily as labor costs are imported from the POS and posted through the Daily Sales Summary. Each daily entry represents an estimated labor accrual, building the payroll liability over the course of the pay period.

These daily accruals are reversed when the payroll journal entry is posted. On the date of the payroll journal entry, the system trues up the estimated labor by debiting the Accrued Payroll Account and replacing the estimates with actual payroll amounts. This process clears the accrual balance, so the GL account should return to zero if all accruals and payroll entries are properly aligned.

Payroll liability activity—including daily accruals and the corresponding reversal entries—can be reviewed in the GL Account Detail report.

---

### FAQ

#### Why did my accrual reversal post twice at period end?

This usually means the payroll journal entry for the period was approved more than once, a manual journal entry duplicated the reversal, or the entry was unapproved and re-approved after the automatic reversal had already fired. Review the [GL Account Detail report](https://docs.restaurant365.com/docs/en/gl-account-detail) for the Accrued Payroll Account to confirm whether more than one reversing entry hit the account for the period, then reverse or void the duplicate using the standard journal entry correction process.

#### Where do I find help with payroll journal entry approval errors or period-end mismatches?

See the [Payroll Journal Entry Overview FAQ](https://docs.restaurant365.com/docs/en/payroll-journal-entry-overview#faq) for approval errors and period-end total mismatches that aren’t tied to the accrual and reversal mechanic covered on this page.

Financial account used to record specific transactions in the general ledger.

POS (Point of Sale)

A system used by businesses to process sales transactions and manage customer payments. Connected to R365 through a [POS integration](/doc/docs/pos-integration-overview).

An accrual is an amount recorded when it’s earned or incurred rather than when it’s paid or received.

A defined date range on the payroll calendar during which employee hours and earnings are accumulated. When a pay period ends, R365 automatically creates a pay run for that period.

A journal entry created automatically when a pay run is approved, recording wages, taxes, deductions, and employer contributions to the general ledger. It must be reviewed and approved separately from the pay run itself.

The value recorded for an account, metric, or activity that reflects what actually occurred, not what was scheduled, estimated, ordered, planned, or forecasted.