Most Important Aspects of Payroll Accounting

Most Important Aspects of Payroll Accounting

Mar 24, 2015 | 12:00 pm

In payroll accounting, the worker is responsible for issuing paychecks to staff on a specified date, or making a wire transfer via the company’s corporate account with a local bank. Next, the payroll accountant has to issue each staff a salary slip, which contains the details of the salary earned. This is perhaps the most vital aspect of a payroll accountant’s job description.

Payroll accountants make a good living as they carry out a variety of responsibilities. This profession offers a solid job security – this job is not likely to be cut since payroll accountants can help companies lower their expenses.

These days, a lot of payroll accountants are also employed on a part time basis especially by small and mid-sized companies. These accountants have the choice of being freelancers or working in a company full time. Some payroll accounts choose to work part time, so they have enough time to further their studies and improve their employability. Payroll accountants can quickly advance in position and manage the organization they work at. Earning coveted positions is easy with additional education.

Important Aspects of Payroll Accounting

A payroll accountant has to generate a company’s payroll on a monthly, fortnightly, or weekly basis – depending on the company’s salary payment policy. These accountants will have to make every single entry and maintain all the records needed. They will also be responsible for closing all accounts at the end of every month and calendar year. Next, they will also forward the information to the company’s accounting department for final accounts.

Here are other important aspects of payroll accounting:

•Payroll accountants are responsible for generating the salaries of company’s staff members.

•The accountants will also have to ensure that the paychecks are transferred to each staff’s account or handed to them.

•Payroll accountants will also have to make entries for every transaction and also keep the books that have been kept in their care.

•These accountants will also need to attend to other accounting tasks that have been assigned to them regarding the organization.

•The accountants will need to carefully and effectively calculate the salaries of every single staff as deductions could be made regarding leave of absences or additions like raises, promotions, and other incentives. Therefore, the payroll accountant will need to be very careful when making the calculations.

•These accountants will also need to be extra careful when they make tax deductions, or else the reputation of the company will be negatively affected.

•They also have to make sure that every single industry standards in accounting laws are well followed.

Education Required for the Payroll Accountant Profession

Earning a bachelor’s degree in accounting is truly the first step needed in order to break into the payroll-accounting field. Next, you will need a couple of years experience working as an accountant in the field. Taking accounting programs interconnected with payroll are valuable in landing jobs in payroll accounting.

Payroll accountants can earn up to $52,000 per year, according to some sources such as Indeed.com, and perhaps more if one reaches a title of manager or supervisor. This is a lucrative career worth looking into.