Accounting Systems for Payroll and Payroll Taxes

Accounting Systems for Payroll and Payroll Taxes

1. Introduction to Accounting Systems for Payroll and Payroll Taxes
   This section provides an overview of accounting systems for payroll and payroll taxes, including their importance in ensuring the timely and accurate payment of employee wages and salaries. It explains the role that these systems play in safeguarding against unauthorized payments and misappropriation of funds, and discusses the legal requirements for maintaining accurate payroll records and preparing reports for submission to government agencies. 
2. The Importance of Payroll Accounting
   This section discusses the importance of payroll accounting, particularly in regards to the fact that payroll expenses often represent a company's largest expense. It explains the need for accurate payroll records to be kept for both federal and state government purposes, and the importance of timely and accurate payroll payments in maintaining good employee morale.
3. Definitions of Payroll Related Terms
   This section defines and explains various terms related to payroll, such as salary, wages, pay period, pay day, and employee. It also clarifies the difference between an employee and a self-employed person.
4. Payroll Records and Reports
   This section discusses the different records and reports associated with payroll accounting, including the employee earnings record, payroll sheet or register, and journal entries. It also outlines the laws and regulations that require employers to maintain accurate payroll records and prepare reports for submission to government units.
5. Payroll Taxes
   This section covers the concept of payroll taxes, including the types of taxes that are typically withheld from employee paychecks and the responsibilities of employers in remitting these taxes. It also discusses the various laws and regulations that govern payroll taxes and the consequences of failing to comply with these laws.