| What You Should Know about Accounting Payroll | | | | Computerized accounting payroll allows for the |
| The most important fact about accounting payroll | | | | printing of hard copy journals as well as payroll |
| is that it involves financial statements and not filing | | | | ledgers and calculates employee taxes to be |
| tax returns. Accounting payroll requires a detailed | | | | withheld automatically with a few simple settings. |
| description of fringe benefits and payroll for | | | | Paying attention to detail is crucially important, as |
| employees which is necessary in the management | | | | errors can cause problems for the accounting of |
| of employee time. Employer paid benefits, payroll | | | | your business. Keep individual files for your |
| taxes and costs as well as wages, salaries, | | | | employees with their time and payroll information |
| bonuses and commissions are only a few of the | | | | in them to make pulling information later an easy |
| items included on a business's balance sheet and | | | | task. Be sure to keep a list of your employees |
| income statement. If you only have a couple of | | | | and employee numbers handy if you choose to |
| employees, using a general ledger will be sufficient | | | | list employees by their number in your accounting |
| to record payroll information, but if you have | | | | payroll. |
| more than just 1 or 2 employees or expect to | | | | Employee time sheets are also called payroll |
| have many more in the future, automating your | | | | source documents, and are required for audit use |
| payroll system can make accounting payroll simple | | | | when accounting payroll. These documents should |
| and efficient. | | | | be put into a payroll document source folder for |
| When keeping track of payroll using journals, | | | | easy access when requested. The Labor |
| there are two journals that are used in this | | | | Department is one organization that requests |
| system. A Payroll Journal records payroll that is | | | | these payroll source documents on an audit basis. |
| due to be paid to employees. When it is time to | | | | It is important to keep documents well organized, |
| disburse payments, a Payroll Disbursement Journal | | | | whether they are in paper form or computer |
| records amounts when payroll is finally paid to | | | | form. Use software for your accounting payroll |
| employees. Journals must be kept with detailed | | | | that will allow you to customize your fields to |
| information on hours worked, amounts to be paid, | | | | accommodate your particular needs, as well as |
| dates and to which employees. Automating this | | | | software that will make it easy for you to |
| process makes data entry very simple, and any | | | | transfer your information to other accounting |
| errors can be caught early rather than searching | | | | programs. |
| paper journals to catch mistakes. | | | | |