Payroll Accounting


A payroll is a type of a series of accounting system transactions dealing with the process of paying workers for services provided, later processing of the different demands for deducting of money from the worker for payment of payroll assesses, premiums, worker profits, garnishments and other discounts.

It is a fact of business if a company has workers; the company has to account for fringe and payroll profits.

The payroll accounting is a large function of most business concern and contains very confidential data such as personal worker data and rates of pay. Many companies have dedicated accountants to deal the payroll accounting system method.

Payroll Accounting

The payroll accounting we will introduce payroll, outskirt profits and the payroll related accountings that a typical company will report on it is balance sheet and earnings report.


Payroll Accounting Entries

The payroll accounting includes the calculation of gross wages (times of day worked times hourly rate of pay) and other compensation such as wages, worker charges and incentives. The payroll accounting as well involves payroll withholding tax such as Medicare taxes and Social Security, state and federal income withholding tax and voluntary withholding tax. The voluntary withholdings include union health insurance premiums, dues, United Way contributions, and contributions to retirement plans and savings.


    


Payroll Functions

The very significant function of payroll accountants is to method the payroll taxations for the state and federal tasks. All employees W-4 is re-examined and participated into the payroll system consequently. Many payroll systems automatically calculate the percentages of the taxes.

The payroll deals with paying your workers (letting in seeing that the government gets the incomes they want you to withhold by the employees and the payroll taxations they want you to pay off).

The payroll and profits include items are as follows:

  • Wages
  • Salaries
  • Incentives & charges to workers
  • Extra time salary
  • Taxes and costs of payroll
  • Sociable protection
  • Medicare
  • Union income tax (revenue enhancement)
  • Nation income tax (revenue enhancement)
  • State unemployment tax (revenue enhancement)
  • Union unemployment tax (revenue enhancement)
  • Employee compensation insurance policy
  • Vacations
  • Holidays
  • Insurance policy (wellness, dental, imagination, life, handicap)
  • Pension account
  • Profits dealing projects

Payroll taxes deducted from workers pay and the payroll taxes that are an extra cost of the employer are accounted as current liabilities until they're remitted to the state and federal governments and other companies.






Next Chapters

Single Entry Accounting
Debit
Depreciation Dividends in Accounting
Double Entry Accounting
Cash Book
Discount Assets
Ledger in Accounting
Final Accounts
Liability Debenture
Journal Entry
National Income
Trial Balance Payroll Accounting
Drawings in Accounting
Petty Cash Book
International Trade Admission of a Partner
Annuities
Book Keeping
Bill of Exchange  


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