In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for working for a period of time. Payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct allowances and deductions, and to ensure the allowances and deductions are paid in a timely manner. This includes salary payments, tax withholdings, and deductions. Manual payroll
Manual payroll means that you, or another employee within your company, calculates the payroll each pay period entirely on paper. This process was very popular when there were no computerized means for payroll. You will need to calculate taxes, insurance and any other applicable deductions and allowances in addition to each employee's actual earnings. The advantage of using a manual system is that it is very inexpensive, with virtually no start-up costs. The disadvantage is that whatever you save on start-up costs will probably be eaten up by the amount of time it takes to process payroll. In addition, it's very easy to make mistakes when processing payroll manually, and the penalty for mistakes, especially mistakes in taxing, can be very costly. Computerized payroll
The computerized payroll software systems save time and money, they're very easy to use and they're also very practical. There are several different types of payroll software systems, with various features, functions or advantages. And of course, the price will also vary according to the type of software. All programs, however, include essential features for storing employee information, files and track records, and will enable authorized users to enter, view or change information anytime. Basic features include paycheck processing,...
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