Payroll Accounting

Does everyone need payroll?

The answer is clearly no. Some businesses do not. We are thinking of companies with a PAYE system or one-man businesses. In their case it is not necessary. However, for businesses with more than one employee and who want to comply with all the legal requirements, payroll is an essential task.
And, of course, the concept of payroll is not unknown to such businesses. They know that it is a guarantee that wages and other benefits are accounted for in accordance with the law. And of course, once accounted for, wages are paid. And they are also aware that an experienced, professional payroll administrator is essential.
So, to summarise the answer to the question, it is true that a significant proportion of businesses need a payroll service.
It's a different question whether the right agency has been appointed to provide it.

Because of misconceptions about payroll, many people see it as an unnecessary expense.

For those unfamiliar with the realities of payroll and its legal obligations, there are plenty of people who can do it all with the wave of a hand. Come on! It's not that complicated! You have a gross salary, you net it according to the percentages given and that's it! It's a simple mathematical formula. What's so complicated?
Believe me, we would be very happy if payroll was just that. But it's much more than that. It is not a simple mathematical calculation that we use as a template.
And that brings us to the next misconception. If it's just simple math, then automate it and have a nice day!
We can help! This cannot be automated!
For one thing, it's a very complicated, multi-factor calculation, the basics of which change from time to time as the law changes. On the other hand, unforeseeable events such as unpaid leave, sickness, assignments, etc. have to be taken into account. These are unpredictable things that cannot be built into a template.
The next such misconception is that the payroll administrator only has a job during the pay period. Well, the fact is that payroll can be run in a different calendar period from company to company. This would not be a problem, but there could be interim payments, bonuses, cash benefits, cafeteria or other fringe benefits, health insurance payments.
In conclusion, payroll is necessary, it cannot be automated, it requires constant monitoring of changes in the law. Leave it to the professionals! 

Here is a summary of what a payroll administrator does

Payroll is not a simple task. But what is payroll in practice?

• Calculating the taxes and contributions due on wages on a daily basis.
• Register the mandatory and permissible salary supplements.
• Calculate the amount of sick pay, report sick days.
• In case of entitlement to a child allowance, account for the allowances for children.
• Monitoring changes in wages.
• Settlement of overtime.
• Keep accounting records.
• Record time off.