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Each employee the system must also provide adequate

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each employee.The system must also provide adequate safeguards against unauthorized payments toThe system must also provide adequate safeguards against unauthorized payments toemployees and other misappropriations of funds.employees and other misappropriations of funds.Various federal, state, and local laws requires employers to keep accurate payroll records andVarious federal, state, and local laws requires employers to keep accurate payroll records andto prepare reports and submit to the appropriate governmental units. The law also requireto prepare reports and submit to the appropriate governmental units. The law also requireemployers t remit the amounts withheld from its employees and for taxes imposed on itself.employers t remit the amounts withheld from its employees and for taxes imposed on itself.These records must be kept for specified periods of time and be available for inspection byThese records must be kept for specified periods of time and be available for inspection bythose responsible for enforcement of the laws. Besides, payroll data may be useful inthose responsible for enforcement of the laws. Besides, payroll data may be useful innegotiations with labor unions, in settling employee grievances, and in determining rights tonegotiations with labor unions, in settling employee grievances, and in determining rights tovacations, sick leaves, and retirement pensions.vacations, sick leaves, and retirement pensions.56
Here, in this chapter, you are going to learn intensely and worked through the major conceptsHere, in this chapter, you are going to learn intensely and worked through the major conceptsthat are common to most payroll systems such as the employee s earnings record, payrollthat are common to most payroll systems such as the employee s earnings record, payrollsheet (or register), and journal entries related to payroll. Each of these concepts is illustratedsheet (or register), and journal entries related to payroll. Each of these concepts is illustratedand discussed by taking into account the current tax law of the country. As much as possibleand discussed by taking into account the current tax law of the country. As much as possiblethe chapter attempts to give you adequate knowledge about payroll systems in Ethiopia,the chapter attempts to give you adequate knowledge about payroll systems in Ethiopia,however, if you come across any confusion or difficulties you can consult the authorities inhowever, if you come across any confusion or difficulties you can consult the authorities inthe Ministry of Finance or Inland Revenue Administration in your locality, or refer the variousthe Ministry of Finance or Inland Revenue Administration in your locality, or refer the variousproclamations especially; Proclamation No. 286 / 2002, the council of ministers regulationproclamations especially; Proclamation No. 286 / 2002, the council of ministers regulationNo. 78 / 2002. And Article 33 or proclamation No. 64 / 1975No. 78 / 2002. And Article 33 or proclamation No. 64 / 19753. 2 IMPORTANCE OF PAYROLL ACCOUNTINGAccounting for payroll is particularly important because:Accounting for payroll is particularly important because:1-1-Payroll often represents the largest expense that a company incurs.

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Term
Summer
Professor
Balaramakrishna

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