Payroll Accounting  Manufacturers, Traders, Suppliers

The correct accounting of the monthly wages is guaranteed by the payroll accounting. Larger companies have their own payroll accounting with appropriately trained employees. Small companies often turn to a tax consultant, who does not only the bookkeeping but also the payroll accounting. For payroll accounting it is always a challenge to pay the correct wages. Wage tax, social security and various levies and voluntary contributions, e.g. for a trade union, are deducted from the gross wage. Only the amount reduced by these deductions, i.e. the net wage is transferred to the employee. However, the employer itself must also make employer contributions from the salary to social insurance. Wages are calculated using a special payroll program. There are numerous suppliers on the market for this purpose. Nevertheless, it is unavoidable that the payroll clerk is also able to account for wages on paper. Random checks of the accounts only guarantee that the accounts are correct. After all, errors can always occur in the computer with a program. The reason for this is often that the payroll clerk forgets to make any changes to the HR master data. For example, the payroll program cannot know when the employee worked a smaller number of hours, or similar. Payroll accounting requires very precise work and ongoing information about various changes in the social security and wage tax area. If new percentages are not taken into account for months, the company may be faced with large additional payments. Properly maintained personnel files with all current changes are the basis for correct payroll accounting.