Best Accountants in Freehold, NJ

What Is Payroll? New Advice for Small Business Owners Payroll is among the more frustrating aspects of running a business. In this article, we detail what payroll is, and ways to make it work for you. Most importantly, we discuss why it’s worth choosing an experienced payroll company to provide accurate payroll services. What is Payroll? Payroll is the process of paying employees, paying taxes, and keeping records of having done both. Payroll functions as a type of accounting system, but one designed specifically for distributing money to employees for their work. These systems help businesses comply with the various federal, state, and local laws in regards to paying employees and taxes. In simpler terms, payroll is a process of making sure that employees and the various government bodies all get the money legally due as a result of people working and getting paid. The government doesn’t care if employers do this themselves or hire a payroll company to do the job. Most business owners prefer their payroll systems to automate payments wherever possible, but it’s not uncommon for businesses to manually report their workers’ hours at the end of each pay period. Are Accounting and Payroll the Same Thing? While it is a type of accounting, payroll and payroll processing are systems with different features than regular accounting systems and software.