Compensation for all employees which includes their salaries, wages, bonuses and deductions, is known as payroll. It means working out how much of your pay should go to each deduction such as tax, health care and so on. Being in charge of payroll means you must keep accurate employee files, find out pay according to the hours or salary, remove taxes and benefits and deliver the remaining net money. Employers have to report and hand over taxes to the right government bodies. Managing payroll well helps a company comply with all labor laws, earns employees’ belief in the company and improves financial functioning.
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