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Payroll Accounting is Important from the Employer as well as The Employee’s Point of View

It is very much evident that the payroll accounting is one of the most important types of accounting in the world today. With the average salary of an employee increasing exponentially and the tremendous benefits that the companies are offering to their employees, both the present as well as past, the job of the payroll accountant has become one of the most important from the employer’s as well as the employee’s point of view. The advancements in technology has also added its own bit in making the payroll accounting a viable option for the students of accountancy.

Before getting into the payroll accounting it is necessary that the payroll accountant verifies the nature as well as the tenor of payroll accountancy. The payroll accountant has to take care of the payrolls of the company. Right from the salaries as well as the wages to the fringe benefits like the paid vacation, insurance coverage as well as the ownership of some of the stocks of the company. In many organizations there are several pension plans that are offered to their previous employees based on the duration and the importance of their responsibilities. It is very vital that the company payroll accountant is competent enough to carry out all such duties since the most efficient and comprehensive manner.

Some of the pension plans that the payroll accountants have to be aware of are:

  1. Group annuity plans
  2. Profit sharing plans
  3. Trust fund plans
  4. Thrift plans
Although these plans are meant for the ex-employees of the organization yet in many cases there are no adjustments made on the basis of the changes in the current living standards. The payroll accounting has to be done in a manner that it is convincing to both the employees as well as the employers. The higher is the satisfaction of the employee the better would be his performance.