What is payroll accounting and why is it important?

Payroll accounting is the process by which the salaries of a company's employees are recorded, calculated and managed. This process includes the calculation of gross wages, deductions such as social security contributions, any withholding tax or professional contributions and bonuses, as well as the payment of net wages. Payroll accounting is of great importance to ensure that employees are paid correctly and on time and to fulfil legal obligations.