Payroll Accounting is the function of calculating and distributing wages, salaries, and withholdings to employees and certain agencies. The accounting for payroll involves all aspects of paying compensation and benefits to employees. The outcome of this process is precise records regarding the expenses associated with all types of compensation, as well as timely payments to employees. Payroll accounting is how a business records employee compensation and keeps track of amounts that are withheld from employees’ pay-checks for taxes and benefit plans.
- Processing Monthly Salaries and re-imbursements – Processing your payroll based on the latest legislative updates.
- Computation of gross pay (hourly, monthly, etc)
- Computation of the total amount of deductions (Taxes, etc)
- Computation of total amount due to employees i.e. the gross pay minus the amount of deductions.
- Authorize the amount of payments due to employees.
- Distribution of payroll after it has been authorized.
- Issuance of reports to upper management concerning labour-cost data.
- Payroll Compliance – ensuring accurate processing of PF, ESI, Professional tax, Labour welfare laws.
- TDS filing
- Issuance of Form 16 (TDS Certificate)
Often times many companies outsource their payroll accounting to specialized firms. These firms can perform the same function for a much lower cost than if the company generated them in-house.
We at UnfoldingTax.com provide assistance in managing payroll to different entities.
Unfoldingtax.com is an online platform for helping Entrepreneurs and Business Owners solving tax and other business-related matters with ease.