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Every big, medium-sized and small organizations have a certain number of employees, who are to be paid in lieu of their services. The companies have to follow the payroll system for processing the payments to employees in an accurate and timely manner. The person-in-charge for preparing the paychecks must have the list of the total number of employees and the salary structure of each of them. This helps in ensuring that each employee receives his paychecks, accordingly. Payroll, is a wider term, which is referred to as the total amount of money, that is spent by a company, for paying the wages of all employees.
Since, it becomes tiresome to maintain the financial records of the salaries, which includes the bonus amounts and deductions, the accounts department wants to get assistance, in carrying out the entire process of maintaining the records, related to the employees salaries. This need has led to the growing popularity of the payroll services.
Introduction to payroll services:
The aim of payroll services is to provide a relief to the small and large organizations, from the time consuming and hectic payroll and accounting process. Payroll services are mostly provided by the certified public accountants, who employ the highly skilled and experienced accountants, for providing the best services to several organizations. They are responsible for carrying out the calculations of the salaries, deductions, bonuses and the other incentives, and keeping the record of the net amount paid to each employee. This helps in ascertaining that how much the company is spending on it's employees. The concept of HRA (Human Resource Accounting) has also provided a boost to the growing popularity of the payroll services.