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Payroll
In a company, payroll is the sum of all financial records of salaries, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. From an accounting point of view, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations (e.g. in the U.S. payroll is subject to federal and state regulations).
Why outsource?
• Reduce the costs involved in having payroll trained employees in-house as well as the costs of systems and software needed to process a payroll.
• Business payrolls are complicated in that taxes must be filed consistently and accurately to applicable regulatory agencies. Example: Restaurant payrolls which typically include tip calculations, deductions, garnishments and other variables, can be difficult to manage especially for new or small business owners.
• Ever increasing complexity of payroll legislation. Annual changes in tax codes as well as statutory payments and deductions having to go through the payroll often mean there is a lot to keep abreast of in order to maintain compliance with the current legislation.
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