What types of costs are included in payroll expenses? When are payroll expenses incurred?

What types of costs are included in payroll expenses?

When are payroll expenses incurred?

Solutions

Expert Solution

Payroll expenses refer to all the expenses associated with the employees of a company. It simply includes all types of compensation that the organization pays to its employees either directly or indirectly for availing their services. Any expense that a company incurs on its employees should be termed as a Payroll expense.

Main types of expenses included in Payroll expense are:-

1. Salaries and Wages.

2. Bonuses.

3. Commission.

4. Travelling allowance.

5. Employees stock option plan.

6. Employees heath insurance and medical benefits.

7. Employees provident fund.

8. Training programmes expenses.

9. Payroll taxes.

Payroll expenses are incurred as soon as the company avail services.of its employees or soon after the employees fulfill thier task. Irrelevant of whether the payment is done or not by company, these expenses are incurred once the services are provided by employees. However, as far as the payment of payroll expense is concerned, it depends upon the policy of company, terms and conditions of employement, rules of the law and prevailing conditions of the company and economy. A company may pay on a daily basis, montly, quaterly, semianually or anually which all depends on various factors mentioned above.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Payroll. Canada. Expenses are costs incurred by an organization in the process of earning revenue during...

Payroll. Canada. Expenses are costs incurred by an organization in the process of earning revenue during a given time period. Expense accounts have a direct impact on the profitability of an organization. List three expense accounts related to payroll. Describe when you would expect the account to be cleared to zero. Explain the methods you could use to reconcile these accounts.

What costs are incurred to create intangibles? What are the/is the classification(s) of intangibles? Types of...

What costs are incurred to create intangibles? What are the/is the classification(s) of intangibles? Types of research and development expenses? can someone please clarify these bullet points for me? It doesn't have to be real in debth just a little confused on these topics

what is the reason for following restricted expenses: 1) any costs borne or losses incurred during...

what is the reason for following restricted expenses: 1) any costs borne or losses incurred during that tax year where the costs were recovered , or the losses were compensated under a contract, insurance policy, court judgment or other. 2)Any amounts considered by the SGT not to be reasonable by reference to the value of the services rendered or other considerations relating to such services. 3) loss from the disposal of securities listed in Muscat Securities Market.

Expenses are costs incurred by an organization in the process of earning revenue during a given...

Expenses are costs incurred by an organization in the process of earning revenue during a given time period. Expense accounts have a direct impact on the profitability of an organization. List three expense accounts related to payroll. Describe when you would expect the account to be cleared to zero. Explain the methods you could use to reconcile these accounts.

Expenses are costs incurred by an organization in the process of earning revenue during a given...

3. Explain the difference between locked in costs and costs incurred. Which of these types of...

3. Explain the difference between locked in costs and costs incurred. Which of these types of costs does a traditional accounting system emphasize? At which stage of the value chain are most costs locked-in? At which stage of the value chain are most costs incurred? What implication does this have for good cost management?

What types of costs are included in overhead? What are predetermined rates? How are those accounted...

What types of costs are included in overhead? What are predetermined rates? How are those accounted for? Give examples to support your comments.

"R&D costs are expensed as incurred. These expenses indude the costs of our proprietary R&D efforts,...

"R&D costs are expensed as incurred. These expenses indude the costs of our proprietary R&D efforts, as well as costs incurred in connection with certain licensing arrangements. Before a compound receives regulatory approval, we record upfront and milestone payments made by us to third parties under licensing arrangements as expense. Upfront payments are recorded when incurred, and milestone payments are recorded when the specific milestone has been achieved. Once a compound receives regulatory approval, we record any milestone payments in...

What costs are included in the initial cost of property, plant, and equipment when they are...

What costs are included in the initial cost of property, plant, and equipment when they are purchased? What is the rationale for including costs in addition to the purchase price of the asset? please answer in your own words, do not use the outside resources

explain the circumstances when losses incurred by individuals are deductible. What types of losses are deductible...

explain the circumstances when losses incurred by individuals are deductible. What types of losses are deductible by individuals? Are there any special circumstances or limitations that apply to deducting these losses? Give some specific examples.

Subjects