Question

In your own words, what is the purpose of a payroll system.

Answer 1

Solution:

Payroll defines as the total amount of wages paid to the employees of the company. For proper payroll processing, we need to maintain the accurate records of employees such as work time, overtime, attendance, and bonus. Payroll processing is essential for financial management and legislation compliance. It helps to ensure that we are paying to our employees correctly.

Purpose of a payroll system:

1) It directly impacts on the confidence level of employees. Incomplete & late payroll might displease your employees, resulting in low business output.

2) Payroll helps to accurately calculate the total compensation of the employee such as bonus, salary, etc.

3) An accurate payroll processing will help to meet the tax obligation on time and legislative laws. It will establish the organisation's reputation as a constant employer.

4) Payroll processing is essential to measure the financial health of the organization. We can think about the future according to the company’s financial health.

5) It helps the emoloyees to review the wages and attendance according to his or her actual worm.

6) A good payroll system ensures work satisfaction, It will helps in developing better employee - employer relationships.