All About Payroll Accounting
Have you ever been employed by a company or a corporation? If so, then you must be very familiar with a payroll or a piece of paper stating the salary or wages, the bonuses and the deductions for each employee. In reference to accounting, the payroll just simply means the quantity compensated to workers, staff, or employees for the services that they have delivered during a certain span of time.
But are payrolls and payroll accounting all that important in a human-operated company?
These two things are very important and essential because this has an effect on the net income of the entire company. There are set rules and regulations to follow or abide to depending on which country or state the company is located. Most companies allocate or create a specific department specialized in accounting and create software specifically designed to the making of employee payrolls. If there are disputes, employees can file a report about it and they can check their pay slips to validate if their salary is correct or accurate.
How frequent should employees receive their payrolls?
In every company, there is also a different strategy or approach when it comes to remuneration. Companies generate their payrolls on consistent intervals to make sure that their employees, staff or personnel are well compensated with regular income that can suffice to their needs. The regularity and frequency of payouts depends on the company and sometimes it depends on the job grade provided to the employees by the company. Some offer a weekly payroll but most of the companies nowadays provide the usual 15th and 30th payroll. Others pay their employees once a month and it is usually dated at the end of the month.
Using computer-based software programs to make payroll easier
A machine is something that reduces human effort thus manually creating the pay slips of employees requires a lot of human effort and company time that even the most competent of employees or accountants will be tired of doing every time the payroll comes. Therefore, companies or corporations decided to keep up with the Joneses and use computer-based software that can create each specific payroll for the different types or classifications of employees. Human accountants can still manage this, but this will be more organized and more precise because the people behind the software do not need to calculate every pay slip for taxes, bonuses, or deductions.
How do these programs work?
Employees used to use the typical punch in - punch out system. This is typically accomplished by using a piece of paper that they place inside a clock type machine that punches the time they come to work and the time they leave work. Nowadays, companies rely on the computers to do the “log ins and log outs” of the employees. There will be a plotted schedule when the employee should come to work against which the attendance of the employee is checked. However, what if the employee was present, but was unable to use the computer generate log in? Will that mean that even if the employee went to work he or she will still be considered absent? The answer to this question is no, every employee has a superior or a colleague that can attest that he or she was present during that day. An employee can file a dispute based on other proofs of attendance.
Accounting used to be rather time consuming and tedious, but with the help of technology accounting is now fast, reliable and easy to do and understand. Truly, payroll accounting has caught up with the needs and the demands of globalization where efficiency is mandatory.
