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Accounting & Reporting

Payroll

Also called: payroll processing, wage bill, payroll accounting

Payroll is the process of paying employees and remitting the taxes withheld from them. Accounting-wise it's rarely just wages: employer payroll taxes, benefits, pension contributions and accrued holiday all attach to it, so the true cost of an employee typically runs 25–40% above salary. Payroll tax remittance is also one of the few obligations whose non-payment can create personal liability for directors.

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