Definition: payroll is a company's financial record of their employees' salaries, wages, bonuses, net pay, and deductions.
In an organization, payroll is the sum of all of the financial records of employee salaries, wages, bonuses and deductions.
In
accounting, the term payroll indicates the amount paid out to employees for the work they have done for the company over a certain period of time.
A critical aspect of financial accounting
Payroll is very important to a company’s financial accounting for several reasons.
In a company’s accounting, payroll is critical because payrolls (and payroll taxes) significantly affect the net income of most organizations. They are also often subject to numerous laws and regulations.
Payroll and employees
Payroll is also, of course, very important to its recipients: the employees. Employees can be very wary of payroll errors and irregularities, so a company must disburse payroll in a timely and accurate manner.
It is important that all employees are paid accurately and timely with the correct withholdings and deductions, and for a company to ensure that any withholdings and deductions are submitted in a appropriate manner. This includes salary payments, tax withholdings, and paycheck deductions.
Payroll and E-conomic
The
E-conomic Online Accounting System has an open API that allows your accounting system to be integrated with other business solutions, such as payroll software programmes.
Learn
more about creating Apps with E-conomic's open API.