This article provides a practical guide to understanding payroll accounting. It covers topics such as hiring employees, calculating gross pay, payroll taxes, employee deductions and benefits, laws affecting payroll, recording payroll activities, and reporting employee earnings. The researchers outline the payroll accounting process in a clear and concise manner, including how to journalize payroll transactions and complete necessary tax forms like the Form 940-EZ and Form 941. The article also addresses special payroll accounting situations and the importance of timely payroll tax deposits to comply with regulations.