Palgaarvestust

Palgaarvestust (payroll accounting) is the process of calculating and administering employees’ remuneration within an organization. It involves collecting time and attendance data, determining gross wages, applying statutory and contractual deductions, and distributing net pay to employees while coordinating with tax authorities and social security funds. The term covers both the day-to-day calculations and the maintenance of payroll records for compliance and reporting.

Key components include timekeeping, attendance, overtime, leaves and benefits; gross wage calculation; deductions such as income tax and social security contributions; pension and unemployment fund payments as required by law or policy; health insurance withholdings where applicable; net pay; and the generation of payslips and payroll reports.

Typical workflow: collect data from timesheets and absence records; compute gross pay; apply deductions and withholdings; add bonuses or allowances; calculate employer contributions; issue payslips and remit net salaries and withholdings to authorities; record transactions in the payroll and accounting ledgers; and perform year-end reconciliations and reporting.

Compliance and records: palgaarvestust follows employment, tax and social security legislation. Firms must retain payroll documents, submit required reports to authorities, and protect personal data. Inaccurate payroll processing can lead to penalties and erode employee trust.

Tools and roles: A payroll accountant or HR specialist typically runs palgaarvestust, often using payroll software integrated with HR systems. Smaller organizations may use spreadsheets; larger ones use ERP or cloud-based solutions to automate calculations, tax filing and reporting.