Search 80,735 tutors

Payroll is more than just printing checks!

It is important to have someone that is trained and certified in the day to day procedures, management, direction, and processing of payroll. A common misconception is payroll consist of only printing checks.

Maybe, you are asking yourself what is evolved in payroll?   

Find A System Monitor

First, you have to find a system to monitor and track the time of your employees.  You have to decide if that system will be electronic or manual.  You know still enter your time into a printed timesheet.  A more accurate choice would be electronic processing. Electronic processing involves the use of a time clock or a kiosk machine, and your employees can log in and out to track time.

Gather All Time Cards And/Or Electronic Entries

Second, gather all time cards or electronic entries and forward to manager, ect to verify the hours reported by the employee is correct. You will have to make corrections and changes if the hours taken are not correct. 

You Need To Make All Calculations

Third, you will need a make all the calculations for pay, minimum wage, additional payments.  Here is where you would need to apply the Federal and State labor laws.  This means you will need to be abreast of the most recent laws.

Make All Deductions and Tax Calculations

Fourth, you will have to make all deductions and tax calculations.  You will have to submit the payments once the payroll is complete.  (You will also have to process the deductions and taxes according to Federal and State laws.)

If You Get This Far...Good!  But There Is More

This is just the tail end of the process...I didn't mention setting up the employees in the system  and maintaining employee information for personal and payroll, garnishment, deductions, insurance.  Also learning the software and contacting various agencies.


Hi Michelle, the article that you have posted is really good.

In many companies overpayment takes place as they calculate the payroll of an employee manually and never thought of using a payroll software or a HRMS Solution.

There are many HRMS Solutions in which one among them is HAPA (Human resources And People Appreciation), it does all the end-end activities like calculation of payroll, attendance, leaves, stores details of the employees along with the scanned copies of the employee etc. and is very cost effective specially for SMEs. It generates even the pay slips to our mails and we can take a print of it if necessary.

I think automating the HR process is a good idea. Companies have this misconception that its a cost to the business. But in reality it leads to a greater ROI and makes the major chunk of the business hassle free and error free.


Michelle C.

Professional Accountant/Business/Quickbooks Pro Advisor