GLOSSARY

What is a payroll accounting system?

Updated: November 9, 2024

Payroll accounting system definition

A payroll accounting system is any software, or online service that facilitates the tracking, calculation, accounting and remuneration of a company’s business expenses related to paying employees.

 

More about payroll accounting systems

Payroll system services vary, but many have advantages that can make a difference in your business. For example, they’re generally easy to set up, and will account for employee benefits, withholding taxes and deductions, with minimum input by the employer.

 

In addition, businesses should look for payroll software that can handle everything payroll-related, including: hiring and onboarding importing hours and wages, running reports and calculating withholdings and deductions. May can deposit wages directly into employee bank accounts, and ensure compliance with federal, state, and local employment laws before they file and pay your company’s payroll taxes for you. This type of service is also known as full-service payroll.

Using payroll accounting system in a sentence

“We never would’ve dreamed of opening remote call centers in New York and California without a full-service payroll accounting system.”

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