Payroll
In one sentenceA monthly sheet that lists, for each employee, the basic salary, allowances, deductions and net amount paid. The payroll entry and the bank transfer are built on it.
Simply put
At the end of each month you prepare the payroll: a line for each employee with the basic salary and allowances, then deductions such as advances, the employee's GOSI share and absence, and the result is the net salary.
The payroll total is the basis of the payroll entry in the books, and it is also the transfer file you send to the bank to pay the salaries.
Worked example
A restaurant has 4 employees. Their total salaries and allowances for the month are 30,000 SAR, and they have deductions (advances and their GOSI share) of 2,000 SAR.
Total salaries and allowances30,000
Deductions2,000
Dr Salaries expense30,000
Cr Bank + Cr Deductions payable and advances28,000 + 2,000
Net salaries transferred to employees28,000 SAR
Formula: Net salary = basic + allowances − deductions
Don't confuse it with
Wage protection systemPayroll is an internal sheet the business prepares, while the Wage Protection System is an oversight program that checks the payroll was actually paid on time.
in FullScreen ERP
Payroll in the system brings together the basic salary, allowances and deductions, and posts the payroll entry to the accounts automatically. HR and payroll