The method used to determine employee pay is relevant. This calls for keeping track of employees' working hours, figuring out pay, deducting taxes, filing federal unemployment taxes, and doing other duties.
Payroll accounting can be very difficult to understand because there are so many taxes that need to be taken out of employee paychecks. The owner of a business is in charge of making sure that the correct amount of taxes are withheld from each employee's paycheck and filed to the relevant government agencies. Another activity small business owners must conduct to guarantee they are abiding by all tax laws and regulations is payroll accounting. The consequences of breaching the rules could include significant fines, interest, and other problems.
