Summarize the wage and deduction information for each employee on a payroll register, which can then be used to compile a journal entry for inclusion in the general ledger, prepare tax reports, and for general research purposes this document is always prepared automatically by payroll suppliers or by in-house computerized systems 10.
The next three sections describe how the payroll process flows for specific types of systems—outsourced payroll, in-house computerized payroll, and in-house manual payroll in this section, we cover the general beginning-to-end processing of payroll, step-by-step, irrespective of the specific payroll system, in order to show the general process flow. A computerized payroll system automatically calculates and prints paychecks based on a variety of rates, deductions and taxes -- work that used to take a small army of bookkeepers to do by hand companies can choose to have an in-house system or have an outside company do it for them.
In-house computerized an in-house computerized payroll system uses software to process the payroll you may invest in payroll software designed specifically for your small businesses and hire a payroll staff of one or more individuals.
If you are processing payroll in-house with a computerized payroll module, activate the change tracking log and make sure that access to it is only available through a password-protected interface this log will track all changes made to the payroll system, which is very useful for tracking down erroneous or fraudulent entries. Ch_01_4260 - in-house computerized payroll introduction qxd 4/22/04 9:27 am page 1 1 creating a payroll system introduction this chapter provides an overview of how the payroll process typically functions, using a payroll supplier, an in-house payroll process assisted by computer systems, or an in-house system that is entirely processed by hand these descriptions also include flowcharts of each process and coverage of the exact controls that are most useful for each situation.
In-house software payroll an in-house software payroll program can simplify the payroll process for some managers after the user initially enters information, payroll software saves employee and payroll settings to expedite the periodic processing.
An in-house computerized payroll system exists when the employer uses payroll software small businesses generally use accounting software with a payroll feature attached, such as quickbooks large corporations use a more expensive and customized payroll system, such as ultipro, which has an hr feature attached.
Consequently, no matter how much control a company may feel it has by using an in-house computerized system, the payroll staff will have a number of additional tasks to perform a computer payroll system, no doubt, would rise the potent of payroll-related fraud. The disadvantages of payroll systems by madison garcia related articles an in-house software payroll program can simplify the payroll process for some managers after the user initially enters information, payroll software saves employee and payroll settings to expedite the periodic processing computerized payroll options are better.