Payroll System Essay

1460 Words Jan 27th, 2015 6 Pages

Did you ever wonder why in every company there is a need to have a system? Do you imagine an organization without any planning program? Since then, in every company a system is one of the ingredients of their success and capacity to give services. Payroll System is one of the fundamental needs of a company. Payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. From an accounting point of view, payroll is crucial because payroll and payroll taxes considerably affect the net
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Businesses may decide to outsource their payroll functions to an outsourcing service like a Payroll service bureau or a fully managed payroll service. These can normally reduce the costs involved in having payroll trained employees in-house as well as the costs of systems and software needed to process a payroll. In many countries, business payrolls are complicated in that taxes must be filed consistently and accurately to applicable regulatory agencies. Like in Restaurant payrolls which typically include tip calculations, deductions, garnishments and other variables can be difficult to manage especially for new or small business owners that don’t have enough experience in business industry. In the UK, payroll bureaus will deal with all HM Revenue & Customs inquiries and deal with employee's queries. Payroll bureaus also produce reports for the businesses' account department and pay slips for the employees and can also make the payments to the employees if required. Another reason many businesses outsource is because of the ever increasing complexity of payroll legislation. Annual changes in tax codes, Pay as you earn (PAYE) and National Insurance bands as well as statutory payments and deductions having to go through the payroll often mean there is a lot to keep abreast of in order maintaining compliance with the current legislation. In our payroll system, we will implement all the basic features

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