Glossary
Payroll Accounting
Meaning & Definition
Payroll Accounting involves the act of accounting for salary-related transactions of employees. This involves the documentation, computation, and management of salaries, allowances, bonus payments, deductions, employer contributions, taxes, and payroll liabilities.
Important Features of Payroll Accounting
- Supports the proper accounting of salary expenditure for employees.
- Helps in proper documentation of the payroll and accounts.
- Enables the proper calculation and payment of statutory deductions.
- Supports proper accounting and payroll reconciliations.
- Prevents payroll errors and supports cost management.
Compliance Guide
There is no statutory compliance that directly relates to Payroll Accounting. However, it should be noted that there are various statutory compliances which an employer needs to abide by when calculating and documenting the remuneration of employees according to the Income Tax Act 1961, the Code of Wages 2019, EPF law, and ESI law.
