Question

1. list and describe two payroll laws/ regulations.

2. describe a payroll accounting system.

Answer 1

1.Payroll laws or regulations are:-

A. Employers are required that they deduct tax from monthly salary paid to employees as per calculation and paid net amount to employees.

B. Employer also required to deduct social security and Medicare contributions from Employee's pay and also contributing the same amount from his side to the Employee's benefit fund.

2. Payroll accounting system is a system that is related with compensation's records of any Company or Organisation's Employees. It accounts following details of Employees:-

A. Their joining date, Gross salary paid to them, Paid leaves allowed to them throughout the year, Any perquisites allowed to them like conveyance allowance, House Rent Allowances etc.

B.Their personal data like Date of Birth, PAN no., Father's Name, Permanent House address etc.

C Details of Income tax saving of Employees.

D.Details of overtime, Bonus paid to employees during the month.