An entity's payroll system calculates two expenses, gross pay and employer's national insurance, and a series of liabilities for settlement at a later date.

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A payroll system typically calculates gross pay for employees and the employer's share of national insurance (or similar taxes depending on the country) as expenses. Additionally, it records liabilities such as taxes withheld, employee benefits, and other deductions that are to be paid out at future dates.

An Entity's Payroll System Calculates Two Expenses, Gross Pay and Employer's