Building a Sturdy Payroll Calculation System

Payroll Accounting is the process by which employees’ compensation is recorded and disbursed by taking into account federal, state, and local tax laws and other with-holdings.

The job of payroll is partly finance and partly HR. It relies heavily on the contractual agreements with the employees, but also on the existing regulations applicable to your organization.

Payroll accounting starts with obtaining inputs from various sources. Before receiving these inputs, you should define clearly the system of sources from which you’ll gain such data.

If the process of payroll computing is not automated to a certain degree, errors are an obvious consequence.

Payroll providers should ensure that there is no conflict of interest when it comes to sensitive issues like computing the final compensation due.