Payroll System

“An automatic payroll process helps you comply with legal and tax requirements and simplifies the process of paying your employees. Many employers outsource the payroll function to an outside vendor or use payroll system software instead of relying on manual processes,” according to Marilyn Lindblad.

“Payroll systems calculate wages and deductions based on entered data, enable report printing for verification purposes, store payroll data, and enable W-2 printing and direct deposit. Because the system is automated, it simplifies payroll processing and reduces errors,” according to Grace Ferguson. So what can employers do to increase engagement and adapt to this new era?

Discover what these advantages are, according to Grace Ferguson:


  1. Time-keeping Transportation

    The automated time-keeping system allows the employer to import time clock data into payroll software.

  2. Payment Calculation

    Payroll software, such as QuickBooks, PenSoft, Z-Pay, Ultipro and Sage Peachtree, calculates gross-to-net earnings based on the payroll representative's data.

  3. Deduction Calculation

    Payroll automation can calculate the withholding tax for each employee based on the withholding conditions data input.

  4. Record-Keeping

    Payroll automation software can generate and store payroll and employment tax data.

  5. Error Reduction

    Payroll automation makes payroll processing simpler and reduces errors, which are more likely with the manual system.

  6. Time-Saving

    A manual payroll system requires that the payroll be processed by hand and is, therefore, a considerably slower procedure than an automated system.

  7. Payroll Data Updates

    Business owners must follow federal, state and local laws when hiring employees, offering compensation and withholding payroll taxes, deductions or garnishments. Payroll automation can help maintain this updated data.

Depending on the size of your company and the type of business you run, it may vary what kind of payroll software is best suited for you. It can be focused on HR Management, time-keeping, etc. Whatever payroll software provider you choose will bring a lot of benefits that manual payroll can not give.


Do you use automated payroll systems? If you do, which software do you use? Tell us in the comments section below.



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