Scribd
Upload
1K views2 pages

Payroll

Payroll is defined as administrating employee salaries through calculating salaries and tax deductions, managing retirement benefits, and disbursing salaries. It involves payroll accounting of calculating earnings and taxes as well as payroll administration of maintaining employee records and referring to employment laws. Payroll accounting and administration work together, with accounting handling calculations and tax filings while administration manages employee data and ensures legal compliance.

Uploaded by

vinoth_17588
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
1K views2 pages

Payroll

Payroll is defined as administrating employee salaries through calculating salaries and tax deductions, managing retirement benefits, and disbursing salaries. It involves payroll accounting of calculating earnings and taxes as well as payroll administration of maintaining employee records and referring to employment laws. Payroll accounting and administration work together, with accounting handling calculations and tax filings while administration manages employee data and ensures legal compliance.

Uploaded by

vinoth_17588
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

Payroll is defined as a method of administrating employees salaries in the organizations.

The process consists of calculation of salaries and tax deductions of the employees, administrating the retirement benefits and disbursements of salaries to employees. It can also be called as an accounts activity which undertakes the salary administration of employees in the organization. Administrating the employees salaries is not an easy task, the HR and accounts department work together to calculate and disburse the salary to the employees. Thus, payroll management can be further subdivided into two sub processes, i.e. Payroll accounting and payroll administration. Payroll Accounting Payroll accounting involves calculations of employees salaries and tax deductions. It also undertakes the activities such as preparation of tax returns, maintaining the payroll records, etc. Payroll Administration Payroll Administration involves managerial activities such as maintaining employees records, referring employment laws. Here, the HR comes into picture which maintains the daily record if employees attendance.

Database of employees is maintained. Employees details such as name, employee ID, basic salary, daily attendance, etc are recorded. Gross Salary is calculated after adding the allowances and incentives to the basic salary of the employee. Net salary is calculated by deducting the tax and other calculated deductions (loan installments, etc).

You might also like