What is an automated payroll system?
In simple terms an automated payroll system effectively allows employers to distribute payroll processing through a computerised system. Payroll systems are used by employers the world over, streamlining their payroll procedures by ensuring that their employers are paid promptly and correctly.
Time Keeping Transportation
Employees are paid in accordance with the hours that they’ve worked each week. The employer is responsible for implementing a time-keeping system to calculate the number of hours worked, therefore paying employees accordingly. Many employers use a time clock to track the hours worked for each employee. Manual payroll systems require payroll to be completed by hand, this increases the likelihood of human error. Automated payroll systems negate this issue.
An automated time keeping system allows the employer to import time clock data directly into the payroll software. The Using a swipe card or badge, or in more innovative businesses, a hand or fingerprint system you can effectively calculate the working schedule of employees. Once the data is transported into the payroll software the data is calculated into hours worked. This simple procedure just requires a payroll member of staff to interpret the imported data.
Automated payroll systems cover effectively calculate PAYE, loans and savings plans, hourly work or fixed salary wages for, potentially, an unlimited number of employees. Gross to net earnings are precisely calculated.
The automated payment system performs all manner of payments. From hourly rates to overtime, double time, salaries to commissions and even bonuses and reimbursements, the automated payment system facilitates all manner of payments. The system automatically generates pay checks and stubs and facilitates the required direct deposit.
Salary and wage deductions are integral to payment processing. The employer is responsible for calculating these necessary deductions. From taxation to pension, and any number of reductions, such deductions are integral to the payment process. Automated payroll systems have tax codes encoded into the software. These systems calculate any withholding of monies precisely, and without error.
National revenue services require employers to keep tax records for a period of time, as do governmental bodies. By using an automated payment system these records can be easily stored and accessed if necessary.
As you can plainly see the benefits of implementing an automated payroll system are numerous. Not only does an automated payroll system streamline the payroll process it ensures that all employees are paid promptly and correctly, allowing employers to feel confident their employees are happy with their salaries.