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Payroll system is one of the fundamental needs of a company.
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In accounting, payroll department refers to the amount paid to employees for services they provided during a certain geological period of time.
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Why is payroll processing important for small businesses?
Irrespective of the size of the organisation, payroll plays a huge role in maintaining the morale of employees to the financial stability of the company. Typically processing of a payroll is time consuming and complex task. More so for smaller companies who do not have a dedicated person to manage their payroll.
Why do employers need a reliable payroll system?
To be able to produce the required outputs and employees are paid on time, employers should have a reliable payroll system (IPPM.Data Output.2003). One of the main data output for employees is pay advice slip.
What are the objectives of the payroll department?
Assisting with timely and accurate payments to employees are key objectives of the payroll department. In addition, the company ensures that the employees pay are applied under the Local Authority terms and conditions and also all statutory and required payroll legislations are applied.
How is pay information printed in a payroll system?
As the company is working with the Local Authority, the payroll system operate a standard type payslip in narrative style. That is pay information is printed either in full text or an acceptable abbreviation. This type of payslip is adapted in large workforce with very different pay structures.
Last Update: Oct 2021
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