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Payroll is the process of paid employees their wages or salaries. It includes tracking hours worked, calculating wages or salaries, subtracting taxes and other deductions, and distributing payments to employees. Payroll is a complex process that is subject to a variety of laws and regulations.

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Here Are The Main Steps Involved In Payroll Processing:

Data collection: The first step is to collect all the necessary data, such as employee hours worked, wages or salaries, and deductions. This data can be collected through timesheets, payroll registers, or other forms.

Calculation: Once the data has been collected, it needs to be calculated to determine the amount of wages or salaries that each employee is owed. This calculation includes taking into account overtime pay, bonuses, and other forms of compensation.

Deductions: The next step is to deduct taxes and other deductions from the employee’s wages or salaries. These deductions can include federal and state income taxes, Social Security taxes, Medicare taxes, and health insurance premiums.

Distribution: The final step is to distribute payments to employees. This can be done through straight deposit, check, or cash.

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