Definition of term of payroll system

Acquisition Cost The cost of the asset including the cost to ready the asset for its intended use. Acquisition cost for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Acquisition costs for software includes those development costs capitalized in accordance with generally accepted accounting principles GAAP.

Definition of term of payroll system

Payroll taxes[ edit ] Government agencies at various levels require employers to withhold income taxes from employees' wages. In the United States, " payroll taxes " are separate from income taxes, although they are levied on employers in proportion to salary; the programs they fund include Social Securityand Medicare.

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May Learn how and when to remove this template message Before considering the payroll taxes, it is necessary to talk about the basic formula for the Net Pay. From gross pay the salary paid to the employee one or more deductions are subtracted, to arrive at Net Pay.

Thus the employee's gross pay pay rate times number of hours worked, including any overtime minus payroll tax deductions, minus voluntary payroll deductions, is equal to Net Pay. Payroll tax deductions play a critical role and because they are provided by law they are known as Statutory payroll tax deductions.

The employer must withhold payroll taxes from an employee's check and hand them over to several tax agencies by law. Payroll taxes include the following: The employer also pays 6. If you are self-employed, you pay the combined employee and employer amount of The employer also pays 1. If you are self-employed, you pay the combined employee and employer amount of 2.

References include the following publications: This publication explains employer's tax responsibilities. It explains the requirements for withholding, depositing, reporting, paying, and correcting employment taxes.

It explains the forms any employer must give to its employees, those employees must give to the employer, and those employers must send to the IRS and SSA Social Security Administration.

This guide also has tax tables needed to figure the taxes to withhold from each employee; Publication 15 — A, Employer's Supplemental Tax Guide. It contains specialized and detailed employment tax information supplementing the basic information provided in Publication 15 Circular E ; Publication B.

Employer's Tax Guide to Fringe Benefits. This publication contains information about the employment tax treatment of various types of noncash compensation.

In the earlier part we have considered payroll taxes related to employee's side. Now it's the moment to talk about the Employer Payroll Taxes Employers are responsible for paying their portion of payroll taxes.

These payroll taxes are an expense over and above the expense of an employee's gross pay. The employer-portion of payroll taxes include the following: Social Security taxes 6. Very often you can hear people using FICA in their terminology.

As we explained earlier both parties pay half of these taxes. Employees pay half, and employers pay the other half. Social Security and Medicare taxes are paid both by the employees and the employers. In summary together both halves of the FICA taxes add up to Any employer is responsible for paying the employer's share of payroll taxes, for depositing tax withheld from the employees' paychecks, preparing various reconciliation reports, accounting for the payroll expense through their financial reporting, and filing payroll tax returns.

As you see this suite of employer payroll tax responsibilities is far above issuing paychecks to employees. The regularity of the intervals varies from company to company, and sometimes between job grades within a given company. Help - Glossary: S

Common payroll frequencies include: Outsourcing[ edit ] Businesses may decide to outsource their payroll functions to an outsourcing service like a Payroll service bureau or a fully managed payroll service. These can normally 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.

Where this may reduce the cost for some companies many will foot a bigger bill to outsource their payroll if they have a special designed payroll program or payouts for their employees.


For 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. Payroll bureaus also produce reports for the businesses' account department and payslips for the employees and can also make the payments to the employees if required.

As of 6 Aprilumbrella companies are no longer able to offset travel and subsistence expenses and if they do, they will be deemed liable to reimburse to HMRC any tax relief obtained.ACE Stands For: Advanced Engine Components Ltd | A Checking Experience | Accountability Creativeness And Efficiency | Accumulated Cash Equivalence | Adjusted Current Earnings | Air Canada Enterprises | Alice Calhoun Enterprises | Alternative Certification Educators | American Casualty Excess | American Coal Enterprizes | American Computer Estimating | Austin Chess Enterprises | Australian.

1 Situation current as of May INTRODUCTION 1 Evidence-Based Governance in the Electronic Age is a three-year project delivered in partnership between the World Bank and the International Records Management Trust.

It involves coordinating a global network of institutions and organisations to. Page 1 of 4 Revised 1/26/ How to Read Your Payroll Advice and Yearly W-2 Earnings Statement UNDERSTANDING YOUR PAY ADVICE A cross section of a Payroll Advice (paystub) below shows dollar amounts received by an employee.

Definition of term of payroll system

On the previous post, you have probably learnt how chart of accounts is constructed with its digitization numbering system. This post describes terms and definitions used on the chart of accounts, thus (hopefully) helps you understand the chart even better.

These payroll definitions will help you learn the basic terminology that your CPA, Payroll Manager, SurePayroll, or other industry professionals may use.

We hope these payroll definitions answer many of the questions that you may have. Payroll. Definition of Terms. Employee Wages the services or tasks being performed are of short duration and will not result in the foreign visitor entering a long-term working relationship with the University; a written contract or agreement exists that identifies the services that are to be performed.

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