Payroll automation: Difference between revisions
Content deleted Content added
Undid revision 986017305 by Lavichaudhry (talk): link spam masquerading as a reference |
m Reverted edits by Harshitsingh07 (talk): addition of unnecessary/inappropriate external links (HG) (3.4.12) |
||
| (27 intermediate revisions by 19 users not shown) | |||
| Line 1: | Line 1: | ||
{{short description|Use of computers to produce paychecks and manage benefit payments for a company or community}} |
|||
| ⚫ | |||
{{use mdy dates|date=August 2021}} |
|||
{{use American English|date=August 2021}} |
|||
| ⚫ | |||
{{Refimprove|date=August 2021}} |
|||
'''Payroll automation'''<ref name=PayrollAutomation.NYT59>{{cite news |newspaper=[[The New York Times]] |
|||
|url=http://www.nytimes.com/1959/01/10/archives/automation-aids-city-on-payroll-130000-employes-receive-checks.html |
|||
|title=Automation Aids City on Payroll: 130,000 Employes Receive Checks Prepared by Huge New I. B. M. System |
|||
| ⚫ | |author=Charles G. Bennett |date=January 10, 1959}}</ref> 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 (economics)|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 consists of several stages and procedures that require expertise in financial administration, such as employment contract management. |
||
Payroll management performs the following tasks: |
Payroll management performs the following tasks: |
||
* Timekeeping: knowing hours worked, and when (to know when [[overtime]] pay applies)<ref>{{cite news |newspaper=[[The New York Times]] |
|||
|url=https://www.nytimes.com/2007/01/23/nyregion/23scanning.html |
|||
|title=New Scanners for Tracking City Workers |
|||
|quote=to automate timekeeping |
|||
|date=January 23, 2007}}</ref> |
|||
* Calculating and paying wages, settlement of tax withholdings |
* Calculating and paying wages, settlement of tax withholdings |
||
* Delivery of wage calculations and certificates to the employees |
* Delivery of wage calculations and certificates to the employees |
||
| Line 17: | Line 28: | ||
== Methods == |
== Methods == |
||
Payroll functions can be automated using |
Payroll functions can be automated using software to facilitate the collection, organization and storage of all information required for payroll calculations and regulatory agency reportage requirements. If the payroll software is not purchased as part of a comprehensive business management system, it can usually be combined with the company's existing solutions for accounting, sales ledger, working hour management and recruiting. Information that has been captured in one part of the system can be used by other modules. Hours registered in the work management system, for example, are automatically transferred to the wage calculation system. |
||
== Benefits == |
== Benefits == |
||
| Line 26: | Line 37: | ||
| title = What are the Benefits of Automating a Payroll System? |
| title = What are the Benefits of Automating a Payroll System? |
||
| url = http://smallbusiness.chron.com/benefits-automating-payroll-system-2126.html |
| url = http://smallbusiness.chron.com/benefits-automating-payroll-system-2126.html |
||
|accessdate = |
|accessdate = September 4, 2013 }} |
||
</ref> |
|||
The American Payroll Association (APA) estimates that automation reduces costs related to payroll management by up to 80%, which is partially explained by the reduced mistakes in wage payments and invoicing.<ref name="inc"> |
|||
{{cite web |
|||
| title = How to Automate Payroll |
|||
| url = http://www.inc.com/guides/2010/12/how-to-automate-payroll.html |
|||
| date = 2010-12-28 |
|||
| accessdate = 9.4.2013 }} |
|||
</ref> |
</ref> |
||
| Line 48: | Line 51: | ||
* [[Robotic process automation|Robotic Process Automation (RPA)]] |
* [[Robotic process automation|Robotic Process Automation (RPA)]] |
||
* Onboarding Automation |
* Onboarding Automation |
||
* [https://fabhr.in/payroll/ Payroll Software] |
|||
== Sources and references == |
== Sources and references == |
||
Latest revision as of 14:39, 31 July 2024
 | This article needs additional citations for verification. (August 2021) |
Payroll automation[1] 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 activities
[edit]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:
- Timekeeping: knowing hours worked, and when (to know when overtime pay applies)[2]
- 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
- Calculating annual holidays
- Managing deductions for employee benefits
The travel costs and travel invoices from the employees are usually processed together with payroll.
Methods
[edit]Payroll functions can be automated using software to facilitate the collection, organization and storage of all information required for payroll calculations and regulatory agency reportage requirements. If the payroll software is not purchased as part of a comprehensive business management system, it can usually be combined with the company's existing solutions for accounting, sales ledger, working hour management and recruiting. Information that has been captured in one part of the system can be used by other modules. Hours registered in the work management system, for example, are automatically transferred to the wage calculation system.
Benefits
[edit]Effective payroll automation collects all relevant information in one place in electronic format, reducing mistakes by eliminating the need to synchronize and manage otherwise duplicate data sets.[3]
Well planned, modern payroll software provides the following benefits:
- It considers collective labor agreements and employer-specific procedures and exceptions.
- It provides a breakdown of the allowances and other bases for wages in the report, with dedicated rows for each day, week and month.
- It automatically follows the legislated accounting and calculation rules in the calculation of annual holidays.
- It manages the drawing up, posting, archiving and reporting of travel invoices.
- When combined with work shift management software, it can utilize data concerning working hours, overtime, allowances, holidays and absences.
Related concepts
[edit]- Robotic Process Automation (RPA)
- Onboarding Automation
Sources and references
[edit]- ^ Charles G. Bennett (January 10, 1959). "Automation Aids City on Payroll: 130,000 Employes Receive Checks Prepared by Huge New I. B. M. System". The New York Times.
- ^ "New Scanners for Tracking City Workers". The New York Times. January 23, 2007.
to automate timekeeping
- ^
Grace, Natalie, Demand Media. "What are the Benefits of Automating a Payroll System?". Retrieved September 4, 2013.
{{cite web}}: CS1 maint: multiple names: authors list (link)