subject: What is Payroll [print this page] What is Payroll What is Payroll
Payroll is the sum of all financial records of salaries for an employee, wages, bonuses as well as deductions. Although similarly in accounting payroll refers to the total amount paid to employees for work completed or services they have provided during a certain length period of time. Normally payroll is broken down in length as times of the month know as pay periods. Also from the accounting prospective payroll is crucial playing a legal part in federal and state taxes. The net income of companies, corporations and partnerships are subject to laws and regulations (e.g. in the United States predominately payroll is subject to federal and state regulations).
Payroll Ethics In the business to business viewpoint, payroll is a critical department as employees are responsive to payroll errors and irregularities. Failure to comply by the department can lead into legal issues and actions by both parties the employee and the business itself. A strong employee value requires payroll to be paid timely and accurately. The main effects of the payroll department is to ensure that all employees, contractors and vendors are compensated accurately and in a timely manner with the correct withholdings and deductions imposed by the government and to ensure that withholdings and deductions are submitted and remitted in the allotted time frame period of reporting and taxation according to the laws and regulations of the United States government.
Payroll Wage Report System
Most employees, vendors and contractors are paid in terms of hours worked or number of items produced. Companies mainly use verifiable reports, measure documents and tools such as time cards or time sheets to determine the total amount of payroll due at the submitted pay period.
Payroll "Term" Interpretations
The term payroll is known to have several different meanings and interpretations. The term payroll can be recognized as every one or anyone of a company, corporation or partnership who receives a regular wage or compensation for the number of hours worked, services rendered, or work completed. Payroll is also considered to be any distribution of paychecks ( physical, electronic, or by normal mail to employees, shareholders, contractors and vendors each pay day or pay period. The Webster dictionary explains payroll as "The financial records for employee wages, salaries, withholdings, deductions, bonuses, pay for time worked and not worked including holidays, vacations, sick time as well as others on compensations on payroll employee paychecks.
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