What is Payroll Accounting?
Table of contents:
- What is payroll accounting?
- It’s important components
We work day in and day out in the hopes of getting paid at the end of the month. Through all this hustle that we go through every day, we don’t realise that there is another department that is working 24/7 just for the sake of the company that you work for. This department rarely gets the credit that it deserves and still keeps its work in check. The accounts department is like the safety wheel that we get when we buy a car. Without which we can get stranded if one of the tyres gets flat on the way. This department works in silence and produces results that help in keeping the company afloat. Without this department, there would be nobody to look after the budgets, expenditures, taxes and salaries of the entire office. This is how crucial this department is for the well-being of the company.
Today, we will discuss a very important aspect of accounting that is responsible for all employees’ happiness which is Payroll accounting. So, let us start with the topic without wasting any more time.
What is Payroll accounting?
As discussed above, several branches in the accounts department handle different sectors of accounting within an organisation. The Payroll accounting team handles all transactions that are related to the employees. It includes salary disbursements, tax deductions, health insurance deductions and much more. Let us dig deep into its components;
1. Calculating Gross Pay: Gross Pay is the salary that the employee earns without deducting the tax values and other benefit values from it. It is important to know that none of the amounts from this pay is deducted without proper intimation to the employees.
2. Deductions: These can be in the form of taxes, health benefits or retirement benefits.
3. Net Pay Calculation: It is the part of compensation the employee gets after all the necessary deductions from his/her gross salary. This is the part of the salary that the employee takes home.
4. Tax Withholding: All employers in India are supposed to deduct taxes from their employees’ salaries and forward that amount to the government in the form of TDS.
5. Record Keeping: Every company has to keep detailed reports of every employee which should include their salaries and all the other important information.
6. Compliance: The payroll accounting team is responsible for complying with all the government regulations related to employee wager laws, overtime laws etc.
7. Generating Payroll Reports: The department has to generate Payroll reports for all employees and present them to the higher-ups every month.
8. Benefits Administration: The department has to monitor all the benefits from the employees’ salaries which may include retirement funds, health benefits, dental benefits and others.
These are some components of the Payroll accounting team that they have to perform regularly.
In conclusion, we think that the accounts team is diverse and deserves to be respected a lot more than it is right now. If you think you can be a perfect account manager, then CBitss has the best Accounting courses in Chandigarh for you.
Q. Is this course available online?
No, none of our courses are available online right now.
Q. Can I get a job after this course?
Yes, our certifications are recognised all over India which will give you an edge over your peers.
Q. Is this course available as an evening batch?
Yes, we have multiple times for our course, choose what you prefer.
Q. Can I join this course after school?
Yes, as it is a general certification course it doesn’t require any degrees.
Q. Which month is best for joining the course?
You can join this course in whichever month you desire as our classes go on year-round.