Chapter 1

CHAPTER I

Introduction

Every worker remembers his first payday whether it costs high or low.  Salary is one of the things that motivate an employee to do well in his job. It is the nature of work; fair and timely compensation for a job well done.

Payroll, at its most basic, is the process by which an employer pays an employee for work performed. If you own your own business, but don't have any employees, then you don't have to worry about payroll. But as soon as you hire your first worker, you have a responsibility to pay that employee on time and the correct amount.

If employers fail in their payroll duties, their workers will be less motivated to fulfill their end of the bargain. They'll be less productive and suffer from low morale. And if you make a mistake on an employee's pay check enough times, he'll probably quit.

From the worker's perspective, payroll seems like a simple task. But there's more to it than just signing a check and delivering it to your desk. An employer must make sure that the proper taxes are withheld from each pay check and that those funds are paid to the right government agency at the right time. Complicated tax forms must be filled out and filed on an annually, quarterly, sometimes even weekly basis. Missed deadlines and improper tax filings can result in steep fines and even jail time.

An automated payroll system enables the employer to process its payroll through a computerized system. A manual payroll system requires that the payroll be processed by hand and is therefore a considerably slower procedure than an automated system.

Payroll system provides a set of procedures which handle the company’s payment of employees’ salary. It requires careful planning because it deals with the people involved in the business. Payroll software systems are programmed to perform manual human resources tasks, freeing up time for you to run or grow your business. They can be used to archive employee slips and monthly reports, giving a concrete...