Final answer:
The statement is True; the payroll department is indeed tasked with updating employee records and issuing paychecks. They handle various responsibilities including wage calculation, withholding payroll taxes such as Social Security and Medicare, and ensuring tax compliance.
Step-by-step explanation:
The statement that the payroll department is responsible for both updating the employee records and writing paychecks is True. In the realm of business administration, payroll departments have a critical role in managing a company's employee financial records. This includes tasks such as calculating wages, handling the withholding and payment of payroll taxes, and reporting to government agencies.
Employers are legally obligated to withhold the correct amount of taxes from employee's wages. Payroll taxes are composed of Social Security and Medicare taxes, which are typically split between the employer and the employee, with 6.2% and 1.45% deducted from the employee's paycheck, respectively. It is crucial for the payroll department to accurately update employee records to ensure tax compliance and proper distribution of paychecks.