“Payroll System Objectives”

🔹Payroll

• Main Activities of Payroll:
• Managing salaries
• Creating pay slips
• Calculating salaries
• Deducting amounts for employees

🔹Objectives of a Payroll System:

• To prepare a detailed salary record of all the employees in an organization.
• Generate Pay Slips through the calculation of salary.
• Ensure the proper use of manpower.

🔹What is HR and Payroll Software?

Human Resource department performs various activities such as payroll processing, maintaining salary details of every employee in the organization, keeping track of deductions, time and attendance, loans, allowances, and bonuses.

🔹Objectives of Payroll Accounting:

Maintaining the employees’ hours and payments, calculating commissions and bonuses, prepare tax payments for each paycheck, and print payroll reports for the master budget and expense budget.

🔹5 Main Tasks of an effective Payroll System:

These tasks include keeping track of hours, calculating wages, tracking attendance, withholding taxes and deductions, printing and delivering checks, completing direct deposits, paying premiums to insurance carriers, and/or paying employment taxes to the government.

🔹Some Payroll Software:

*Xero

*QuickBooks Payroll

*Gusto

*Paycor

*Payment Rails

*Toast Payroll

🔹Is Payroll a Finance or HR Function?

Payroll is an employee-facing function, which is why some feel that it belongs with HR. Changes to pay, entering termination dates and start dates, and entering or changing benefits information falls under the human resource umbrella.

🔹5 Types of Pay Periods:

weekly —— Every week

bi-weekly ——- Every other week

semi-monthly ——- Twice monthly

monthly basis ——- Once a month

🔹How to Calculate Payroll:

Calculating Payroll for Employees: Everything Employers Need to…

Step 1: Determine Total Time Worked for the Period.

Step 2: Calculate Gross Pay (Before Deductions & Taxes)

Step 3: Determine Your Payroll Deductions.

Step 4: Find the Sum of Payroll Taxes.

Step 5: Subtract Deductions & Taxes From Gross Pay.

🔹How to Calculate Monthly Salary in Excel:

You can use simple formulas in Microsoft Excel.
For example:

✅ If your annual salary is in cell A1, then your monthly salary is:

excelCopyEdit=A1/12

✅ If you have total hours in A1 and hourly pay in B1:

excelCopyEdit=A1*B1