So what exactly is payroll accounting?
Payroll Accounting is the task of calculating and recording the complete financial process typical companies report on their income statement and balance sheet.
This straight forward accounting process can get complicated very quickly if you don’t have the proper tools and software in place. I think we can all agree that processing payroll for employees in a timely and accurate manner is essential to running a business. So with Payroll accounting, you can
- Calculate payroll salaries and wages, bonuses & commissions
- Determine the correct individual deductions & withholding taxes
- File tax reports & payments for the various federal and state taxation agencies
- Administer employer –paid fringe benefits such as 401Ks and insurance