What is payroll
Explain what do you meant by the payroll?
Expert
Payroll deals with the paying your employees (involving seeing that government gets the monies they need you to withhold from the employees and payroll taxes they want you to pay).
In case, you have irregular employees or even one or two full- or part-time, you may obtain by recording the payroll transactions within the General Journal. The classic transaction is <date> <cash / amt– labor-expense / amt+... withholding / amt–... accrued-tax / amt–... tax-expense / amt+...> <comments>, where <comments> involve who you paid and hours they have worked. Labor-expense, accrued-taxes, withholding, and the tax-expense involve several accounts as we will get into below.
In case, you have more than a couple of the employees it certainly pays to set up the Payroll system.A Payroll system includes a Payroll Journal where the payroll is accrued, that is, held in an "owed" state (such as an open vendor invoice) till paid, and a Payroll Disbursements Journal where the actual payments to the employees are recorded.
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