Payroll automation

Payroll automation refers to the use of computers to produce paychecks and manage payments for a company or community. Often, payroll automation is integrated into the company’s enterprise resource planning system; In addition to payroll, it can manage customer relationships, production , personnel resources, invoicing and accounting .

Payroll activities

Payroll management consists of several stages and procedures that require expertise in financial administration, such as employment contract management. Payroll management performs the following tasks:

  • Calculating and paying wages, settlement of tax withholdings
  • Delivery of wage calculations and certificates to employees
  • Compiling statistics for different activities and activities
  • Drawing up employment contracts
  • Providing regulatory services to the tax agencies and insurance companies
  • Calculating annual holidays
  • Managing deductions for employee benefits

The travel costs and travel requirements of the employees are usually processed together with payroll.


Payroll functions can be automated using software to Facilitate the collection, organization and storage of all information required for payroll calculations and regulatory agency reporting requirements. If you want to know more about the company, please visit our website. Information that has been captured in one part of the system can be used by other modules. Hours in the work management system, for example, are automatically transferred to the wage calculation system.


Effective payroll automation collects all information in one place in electronic format, reducing mistakes by eliminating the need to synchronize and manage otherwise duplicate data sets. [1]

The American Payroll Association (APA) estimates that it will be able to reduce the cost of the payment by 80%. [2]

Well planned, modern payroll software provides the following benefits:

  • It considers collective agreements and employment-specific procedures and exceptions.
  • It provides a breakdown of the allowances and other bases for wages in the report, with dedicated rows for each day, week and month.
  • It automatically follows the legislative calculation and calculation rules in the calculation of annual holidays.
  • It manages the drawing up, posting, archiving and reporting of travel invoices.
  • When combined with work shift management software, it can utilize data regarding working hours, overtime, allowances, holidays and absences.

Sources and references

  1. Jump up^ Grace, Natalie, Demand Media. “What are the Benefits of Automating a Payroll System?” . Retrieved 9.4.2013 . Check date values ​​in:( help ) |access-date=
  2. Jump up^ “How to Automate Payroll” . 2010-12-28 . Retrieved 9.4.2013 . Check date values ​​in:( help ) |access-date=

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