Payroll accounting

As the industrial revolution expanded so did competition for employees. Employers began to offer benefits to employees and these benefit programs became more convoluted with incentives, matching programs and time based vesting. Payroll accounting is very important for all organization because they have to pay wages/salaries to their workers /employees. At the same time they have to make certain payments in the form of taxes to government authorities. Some of these associated costs were shouldered by the employer and others were a deduction from the employee’s regular wages/salaries all in the battle to acquire and retain employees. This paper will to introduce the reader to the meaning and history payroll accounting and factors associated with the various elements of the payroll.