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.
(prHWY.com) May 24, 2012 - Alameda, CA -- 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.
Payroll Outsourcing
An organization may employ several employees on full time, part time or contractual basis. The payroll will be different for miscellaneous employees. Here administrating payroll becomes complicated. The circumstances have given rise to payroll outsourcing.
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