Payroll accounting is the documenting of a company’s employees’ compensation, which includes gross earnings, salaries, bonuses, commissions, and so on.
Payroll is an employee-facing function, hence some believe it should be handled by HR. Changes in compensation, inputting termination and start dates, and entering or altering benefit information all fall under the purview of human resources.
Payroll journal entries are used to record the remuneration paid to employees. These entries are subsequently included into an entity’s financial accounts via the general ledger.
What is the difference between income and payroll tax?
The main distinction is that payroll taxes are paid by both the employer and the employee, whereas income taxes are exclusively paid by the employer. The taxes also serve various purposes: federal payroll taxes finance specified programmes, whereas income taxes can be used for any purpose determined by the municipal, state, or federal governments.
