Pay Roll

• Payroll register


  A summary of salary calculations for each employee
• Payslip


  • Given to each employee with the calculations of their cash/cheque pay and deductions
• Calculations of Pay


  1. Fixed rate - based on an agreed amount for a set period of time

  2. Overtime - based on the number of hours worked beyond normal hours

  3. Piece rate - based on the work done in terms of products made or process completed

  4. Commission-based - based on individual contribution to the business' performance
• The different ways highlighted are used to calculate gross pay, which is the entire amount the employee has worked for
• Deductions


  • Statutory - the amount the employer is legally required to take from the employee's gross pay, payable to the state eg. PAYE, NIS, HS, social security
  • Voluntary - only occur when the employee indicates (in writing) to the employer, e.g. Loan payments, union dues, etc.
• Accounting software used for payroll


  • Quickbooks
  • Peachtree Accounting