Payroll

Payroll accounting involves a company's recording of its employees' compensation including gross wages, salaries, bonuses, commissions, and so on that have been earned by its employees, withholding of payroll taxes such as federal income taxes, Social Security taxes, Medicare taxes, state income taxes (if applicable).

When processing payroll, don't assume that it's only the hourly paid employees who receive overtime pay—state and federal laws require overtime payments to lower—paid salaried employees. It is also possible that some generous employers will give overtime pay to employees who are not required by law to receive it.