BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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payroll
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net pay
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total earnings
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payroll taxes
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Detailed explanation-1: -The total amount earned by all employees for a pay period is called gross pay.
Detailed explanation-2: -Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.
Detailed explanation-3: -Payroll register – a business form used to record payroll information. B. A payroll register summarizes the payroll for one pay period and shows total earnings, payroll withholdings, and net pay of all employees.
Detailed explanation-4: -Formula for calculating payroll Gross Salary = Basic salary + HRA + DA + Allowances + One-time payment/incentive (Reimbursements, Arrears, Bonus, etc.)
Detailed explanation-5: -In simple terms, payroll can be defined as the process of paying a company’s employees. It includes collecting the list of employees to be paid, tracking the hours worked, calculating the employee’s pay, distributing the salary on time, and recording the payroll expense.