If you are not a KATA entrepreneur or a single-person company, but have employees working in a registered position at your company, this information is for you.
If you meet the above criteria, then payroll accounting is certainly an already well-known term in your dictionary.
When an employee receives his/her salary at the end of a month based on work hours, he/she probably does not even know that the numbers behind his/her salary are the result of a quite serious work. This is a very important, thorough calculation, which is the basis for ensuring that the figures are true when the wages are paid.
Actually, payroll accounting is a guarantee that the current legislation is considered when the work carried out is paid. An experienced payroll accountant is necessary by all means to have precise payroll payment that is in accordance with the law.
In many employees the question arises – and this was the case also decades ago – that why is it necessary to calculate the same wage every month.
PAYROLL ACCOUNTING IS A COMPLEX PROCESS
Even among employers there are some – fortunately fewer and fewer – who think that payroll accounting consists only of deducting the amount of wages from income and then paying them to the employee.
If that were all, then the whole process could be automated. However, this cannot be solved in this way. The question often arises, what happens if a worker is absent from work, either due to illness or due to other reasons? Well, that already makes automation impossible.
The other misconception is that a payroll accountant has to work only during the pay period. Well, that is also a misconception. This is so, because in a bookkeeping office, a payroll accountant may occasionally work for multiple employers, and it is not obvious that payroll takes place on the same day.
In addition, there may be extra payments within a month, rewards, cash benefits, cafeteria, other fringe benefits, health fund transfers, just to name the most common ones.
WHAT DOES A PAYROLL JOB CONSIST OF?
As it has been described so far, this is not an easy task.
In fact, it has certainly much more to deal with than described above. Briefly, what are the tasks of payroll accounting?
- Calculation of taxes and contributions on wages per day
- Registration of mandatory and optional wage supplements
- Calculation of sick pay, declaration of sick days
- If needed, then accounting the discounts after children
- Considering salary increases
- Accounting overtime
- Registration of business trips
- Recording vacations
Let us say that this was only a short summary of the tasks of a payroll accountant.
We can say that payroll accounting requires thorough, professional knowledge, preparedness and continuous expanding of know-how, the following of legal changes.
Precision is important, because if the numbers do not add up, then lots of employees will be dissatisfied. It should also be taken into account that we are also liable to the tax authorities for mistakes.