In: Accounting
What are the advantages of a computerised payroll system over a manual system? Discuss in 150–180 words (Please type up your answer)
Computerized payroll system is performed by computer to process payroll using payroll software while entire manual process is performed in handed form. |
Computer system provides advantage of accuracy and speed work with cost optimize. |
Computerized payroll system is cost effectiveness compared to manual payroll system. |
Under manual system, company require to print out pay check on type writer while computerized system aid in direct deposited to employee. Which help to quickly payment to employee. |
Under manual system, it is hard to store data of employee when company has large number of employee. While computerized system of payroll easily save large number of data in server or hard disk. |
Computerized system easily tracks of data relating to personal leave or vacation leave taken or paid. |
Under manual system, manual reconciliation requires for payroll tax and other reporting purpose while under computerized system, there is no need to reconciliation of data. |
Reliability of data under computerized payroll system is more compare to manual system of payroll. |
Computerized system can produce many report such weekly, biweekly, monthly and quarterly on basis of input data available in payroll software. |
Computerized system also calculates employee statutory deductions federal income tax withholding and state income tax withholding. |