The term “payroll” mean the sum of all financial records like employee salary, wages, bonuses, and deductions. It encompasses every employee of a company who receives a regular wage or other compensation.
In a company, there are employees who are paid a fix salary and there are employees also who are paid for hours worked or the number of items produced. All of these different payment methods are calculated by a payroll specialist or payroll software then the appropriate paychecks are issued.
In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons:
Accounting Point of View:
payroll is crucial because payroll and taxes considerably affect the net income of most companies and they are subject to laws and regulations (e.g. Income Tax Act, 1961 India).
Business Ethic Point of View:
Payroll is a critical department as employees are responsive to payroll errors and irregularities: good employee morale requires payroll to be paid timely and accurately.
The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings (Tax deducted at source) and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings (Tax deducted at Source), and deductions from a paycheck.
What is Payroll Software?
Payroll Software is a computer application that allows you to manage your employee payroll services in a most accurate and easy way. Today, there are lots of Payroll Softwares in the internet like Efficacy Attendance & payroll software.