Payroll

Explanation: Payroll refers to the process by which employers pay an employee for the work they have completed. It involves calculating wages, withholding taxes and other deductions, and issuing payment.

Example: Every month, your graphic design firm calculates and distributes wages to employees, deducts appropriate taxes, and records these transactions.

Potential Issues: Errors in payroll can lead to employee dissatisfaction, legal issues due to incorrect tax calculations, and financial discrepancies in accounting records.