What Is Payroll Accounting?
Payroll accounting is the process of calculating the payment of employees of an organization taking into consideration various factors such as their employment status, benefits, withheld taxes, number of work hours.
Documents Required For Applying:
1. Number of work hours of the employee
2. Pay rate based on his/her grade
3. Deductions to be processed before handing out paychecks
What Is The Process Of Registration?
1. Calculate the number of hours an employee has worked over a week or a fortnight or a month and multiply it with his/her pay rate to obtain gross pay.
2. To the gross pay, add the overtime pay and deduct taxes, insurances, and benefits. You will have the net pay.
Keep a payroll record.
3. Payroll accounting becomes increasingly time-consuming and error-prone when done manually. Besides, hiring an accounting team for calculating payroll is much costlier than outsourcing or using payroll software.
Avoidance of payroll taxes can have severe consequences on your business. You may be subjected to steep fines and strict legal actions.
FREQUENTLY ASKED QUESTIONS
You may face heavy fines and imprisonment starting at 3-6 months depending on the amount due.
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