Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government. (true or false)

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Business

Emery Maldonado

19 November, 21:02

Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government. (true or false)

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Answers (1)

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Molly · Answer 1

True

Explanation:

The total amount earned by all employees for pay period i. e, weekly, twice a month or monthly etc is called payroll which is always a documented to inform employee and company budgetary matters too. The payroll is reduced by the federal and state taxes applicable and other deduction such as health insurance and employee advances/loans etc to determine the amount paid to the employees. The business also uses these record to inform employees about their earning and inform the government by submitting payroll reports.

Tax based on the payroll is called the payroll tax. A business is required to withhold the tax from the salary as per the law, therefore accurate and detailed payroll record should be maintained. Government may impose penalty to the business if found any disparity or error in the earning and tax deduction. Payroll taxes withheld represents a liability for the employer until the payment is made to the government.