Ways to Do Payroll

Processing the company payroll may not be the sexiest use of computer technology, but it is one of the most essential.

If all employees work in one location and are paid a straight salary

a couple of times a month, payroll processing is relatively straightforward. Any payroll processing system available for your tax jurisdiction, whether packaged software or an outsourced service, will be able to handle it. Your biggest decision may be choosing the logo you want printed on the checks.

However, if you have a widely dispersed workforce, employ hourly workers who are paid an overtime premium and shift differentials, or are subject to a union contract, you need to carefully evaluate your proposed payroll processing solution to ensure it can accommodate your more demanding requirements.

Payroll was one of the earliest business applications to be automated because it requires a lot of calculations and an accurate database to record the results. Calculating the gross pay isn’t too difficult, in most cases. It’s all those taxes and other deductions that can have an accountant twisting his abacus beads in a knot.