Payroll processing involves calculating paychecks, adding employees onto the company’s payroll, ensuring compliance with state and federal tax laws, and maintaining payroll records. Payroll software simplifies these tasks and empowers HR professionals to handle activities from one place. It also typically integrates with other business systems.
First, payroll software requires businesses to input employee information and attendance or hours worked. The system then takes this data to compute, deduct withholdings, support direct deposits, and enable the entire payroll process. Modern payroll software can also be linked to bank accounts for automatic salary disbursement. Payroll solutions also generate pay slips to show pay information and create relevant payroll reports.