Payroll accounting

Definition of payroll accounting

The wage and salary accounting is the department in a company that records, calculates and records the wages to be paid and instructs them to be paid out. In addition, it has legally regulated documentation, deduction and transfer obligations. It is also called payroll.

The wages and salaries accounting determines the amount of the wages of the employees in the form of gross or net wages. The wage and salary costs or the social benefits are calculated and the data is forwarded to the operational accounting department.

Receipts from the payroll accounting

  • Payrolls, which contain the amount of the wages per employee
  • Employment contracts from which the amount of the remuneration can be found
  • Piecework sheet from which the hours worked by the employees are taken
  • Time cards showing the hours of attendance of the employees.

The working hours are valued with the corresponding wage rates and surcharges are added in order to obtain the gross wage. The net wage is calculated after deducting wages or salaries. Church tax, social security contributions and any additional deductions.

Payroll account

There is one for every worker Payroll account respectively. The IT department creates wage or salary slips or wage lists, which are forwarded to the financial accounting department, which initiates the payment of the funds.

The organizational classification of payroll accounting can be handled differently. It can be a department of the HR department or it can be assigned to corporate accounting.

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