Question

The key objectives for any payroll system are to produce payroll accurately, on time and in compliance with all legislation. List and describe three items that the organization can use to analyze their specific requirements prior to selecting a payroll solution.

Answer 1

The key objectives for any payroll system are to produce payroll accurately, on time and in compliance with all legislation.

Three items that the organization can use to analyze their specific requirements prior to selecting a payroll solution are:

a. Employee Strength & Cost : A small organisation, say 20-30 employees may not require a complex payroll software. They can manage the Payroll without incuring costs for Payroll Solution. It is only for large organisations with large employee strength that Payroll Solutions may prove to be beneficial.

b. Features: Whether the payroll system offers features such as payment options, payment timing,tax calculations and deductions, supplementary wages, working time, attendence etc. Whether the Company providing Payroll Solution provides regular updates or not is another important to know before purchasing the same. Whether the system is Online System or Desktop Software is also important factor.

c. Security: Security is an important factor while selecting a payroll system. Adequate controls shall be part of the system to keep data safe have high-security encryption.