Every accountant must know, “What is payroll?”. When the company pays any wages (wages, bonuses, advances) to employees, the payroll is issued. You can make payments and cash receipts and expense orders, but they are valid only for one working day, which is a large enterprise with a large number of employees is merely inconvenient.
In accounting, printed (or filled electronically and then printed) form is the prescribed form. The document contains a table of four to six columns and rows based on the number of workers who will receive cash, as well as the total line. A sample of filling in the payroll, if desired, can be viewed on the internet.
The notion of payroll taxes
Also, you should know: “What is payroll tax?”. All payroll taxes can be divided into two parts:
- The payroll taxes paid by the employee. This is a 13% personal income tax. It is withheld from the accrued salary and reduces the income received;
- The payroll taxes paid by the employer in favor of the employee. These are additional expenses of the organization, and they make more than 30%.
These payroll taxes include insurance contributions to extra-budgetary funds – the Pension Fund, the social insurance fund, and the health insurance fund. Now, you know how to calculate payroll taxes.
How to do payroll
There are some tips on how to do payroll. The accountant responsible for filling in the payroll with all payroll taxes shall indicate on the title page the name of the enterprise and structural subdivision or the surname, name, and patronymic of the individual entrepreneur. The accountant also specifies the code on the General classifier of the enterprises and the organizations in the column “the corresponding account.” For help, one can use a payroll calculator.
The date of the payroll (not later than the day of cash disbursement and document signing) and the serial number (starting from the beginning of the calendar year) are also indicated.
The settlement period in the payment statement is specified “from__to” – you would put the dates for which payment is made. For example, the first and fifteenth of the month, if it is payroll for issuing an advance even if the payments themselves are made from the twentieth.
Before the cashier can begin to issue funds on the payroll, the head of the enterprise must certify it. Such a signature will serve as a basis for the cashier to start work.
What can you do if there is an error in the payroll?
Sometimes, there are situations when, for some reason, it is no longer possible to renew the payroll. In this case, inaccurate information should be carefully crossed out, write the correct data on top, and all the same, employees who signed the initial version of the payroll should certify the correction with the signatures. Here, you need to specify the date of correction. If everything is done following these recommendations, the document will not lose its legal force.
How to close a payroll
This stage is the final one. After the validity of the payroll has expired (five days), the cashier must issue its closure. Moreover, this must be done even if the salary was not issued to all employees. To close the payroll, you need:
- Write the word “deposited” in front of the names of those employees who have not received the money due to them under this payroll;
- Calculate the issued funds and those that have been deposited. Enter this information on the last sheet of the payroll;
- Certify the statement with the signature;
- Issue a cash order. It is necessary to write the number of funds issued, then enter the order number in the payroll.
After this procedure is carried out, the statement needs to be transferred again to the accounts department.