Payroll accounting is a part of accounting that deals with calculating the amount of money payable to employees after adding their bonuses and fringe benefits. All companies are by law required to give their payroll accounts on their financial statements. There are many types of payments made to employees that include overtime, commissions, social security, Medicare, etc. All these financial transactions are required by law to be present in the financial statements of the company. It is not easy to prepare payrolls for the owner of a corporation. Thus, the company needs a professional payroll accountant to ensure a smooth financial management.

A payroll accountant can save not just time but also money for a business owner

A professional payroll accountant can not only fulfill legal formalities while preparing payrolls for a company, but he or she can also save much time and money for the owner of the business. There are many business owners who think it is a waste of money to purchase such services. However, in reality, payroll accountant is the professional who can turn your business into a successful corporation by allowing you to keep track of the earnings and expenditure. As your company expands, it is only natural for you to pay less and less attention to bookkeeping. But not knowing the receipts and expenses on a daily basis can cost you severely as you cannot calculate your real profit or loss.

Having a payroll accountant working for a company makes sure that the owner knows the exact amount of money that is spent on a daily basis on the salary and wages of the employees. This allows him to calculate his profit margins and he is also able to take informed financial decisions to make his business more successful.

One of the biggest advantages of hiring a professional payroll accountant is that you can save money for your company by entering accurate information about the money spent on your employees. Company laws are continuously changing, and these experts are well abreast with these changes to enter accurate information so that your business adheres to these rules and regulations.

Computation of salary of monthly and daily workers

A payroll accountant collects information about the number of hours put in by employees on a day-to-day and weekly basis. Salaries of employees working on a monthly basis are differently computed than employees working on an hourly basis. These professionals arrive at the total amount of money paid to individual employees after adding their bonuses, overtime, and commissions paid on sales. Some businesses also pay money to independent contractors. These contractors are shown on the payrolls of the company so as to avoid burden of payroll taxes. All these decisions are taken by the payroll accountant to save money for the business.

All employees of a business have to submit their individual income taxes, but the employer has to file not just his financial statements but also payroll taxes. It is the duty of payroll accountants to assess the income tax owed by different employees. This amount of money is withheld by the company and submitted to the IRS.

When you outsource your payroll accounting to an accounting firm that specializes in it, you remain free from worries of penalties that are levied on account of delays or incorrect information about salaries and wages.

GLG Accounting specializes in payroll accounting. It has been helping hundreds of small and medium businesses by preparing their payrolls accurately and timely. Contact us today for any further inquiries and assistance.

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