Payroll software is technology that aims to streamline and automate the process of paying a company's employees.
Functions of payroll software include automatically calculating withholdings or deductions, processing direct deposits, voiding payments and generating tax forms and other reports. Some systems also feature check printing capabilities.
Experts say organizations that use payroll software reduce cycle times and manual errors. Some companies choose to outsource the payroll process to a third-party provider that runs payroll software on its own systems.
Payroll automation refers to the use of computers to produce paychecks and manage benefit payments for a company or community. Often, payroll automation is integrated into the company’s enterprise resource planning system that provides an overall view of the company’s or community’s finances; in addition to payroll, it can manage customer relationships, production, personnel resources, invoicing and accounting.
Payroll management consists of several stages and procedures that require expertise in financial administration, such as employment contract management. Payroll management performs the following tasks:
Calculating and paying wages, settlement of tax withholdings
Delivery of wage calculations and certificates to the employees
Compiling statistics for different authorities, and for the purposes of improving activities
Drawing up employment contracts
Providing regulatory reports to the tax agencies and insurance companies