Payroll Account

Payroll account involves a company's recording of its employees' compensation including: gross wages, salaries, bonuses, commissions, and so on that have been earned by its employees, withholding of payroll taxes such as federal income taxes, Social Security taxes, Medicare taxes, state income taxes (if applicable).

• Withholding for the employees' portion of health insurance premiums, employees' contributions to savings plans, garnishments of salaries and wages, employees' contributions to United Way, etc.
• employer's portion/expense for Social Security taxes, Medicare taxes, state and federal unemployment taxes
• employer's portion/expense of fringe benefits such as health and dental insurance, paid holidays, vacations and sick days, pension and savings plan contributions, worker compensation insurance, etc.

If employees are paid weekly or biweekly and the company has calendar month/year accounting periods, the company will have to accrue for the wages and benefits earned by the employees (but not yet paid or recorded in the general ledger accounts) as of the date of the financial statements.

 

The service of distribution of salary to companies employees:

1- Sign a salary contract after an interview with branch manager.

2- Open an account for the company (according to the conditions mentioned in opening an account for companies).

3- Open an account for the employees in accordance to their working place for all the bank branch (according to the conditions mentioned in opening a current account for individuals).

4- Submit an approved payroll schedule to  company's accountant.

5-Submitting an approved schedule for two parties, the schedule should be legally and officially confirmed by those two parties.