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Investigating the Nature of Payroll Accounting in Public Sectors Accounting Department

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Description

– Investigating the Nature of Payroll Accounting in Public Sectors Accounting Department –

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Abstract

The study examines payroll accounting in public sector, adopting a secondary source of data and a regression method of analysis; the findings of the study showed that payroll accounting in public sector is essential for organizational performance.

Findings also  showed that  and efficient payrolling can increase the performance rate of workers hence, enhancing the performance of public sectors in Nigeria.

It was further noted from the finding that computerized system of payrolling can improve  and facilitate payroll preparation and accuracy in payrolling records.

It is on this note that the study recommended that every public sector should ensure effective   system of Payrolling of all the staff in other to ensure effective salary payment to staff and Computerized system of Payrolling should be adopted in every public sectors  to help facilitate efficient Payrolling.

Introduction

1.1 Background of the Study

A payroll is a company’s list of its employees, but the term is commonly used to refer to: the total amount of money that a company pays to its employees, a company’s records of its employees’ salaries and wages, bonuses, and withheld taxes.

Payroll in the sense of “money paid to employees” plays a major role in a company for several reasons. From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and because they are subject to laws and regulations (e.g. in the US payroll is subject to federal, state, and local regulations).

From a human resources viewpoint, the payroll is critical because employees are sensitive to payroll errors and irregularities: Good employee morale requires payroll to be paid timely and accurately.

The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and that the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from pay checks.

Companies typically generate their payrolls at regular intervals, for the benefit of regular income to their employees. The regularity of the intervals varies from company to company, and sometimes between job grades within a given company.

Common payroll frequencies include: daily, weekly, bi-weekly/fortnightly (once every two weeks), semi-monthly (twice per month), and monthly(Payne & Charlie,2014) Less common payroll frequencies include: 4-weekly (13 times per year), bi-monthly (once every two months), quarterly (once every 13 weeks), semi-annually (twice per year), and annually (yearly)

Businesses may decide to outsource their payroll functions to an outsourcing service like a Payroll service bureau or a fully managed payroll service. These can normally reduce the costs involved in having payroll trained employees in-house as well as the costs of systems and software needed to process a payroll

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