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Why A Computerized Payroll System Is Just Better

One of the major tasks for any business is keeping track of employee work hours and compensating all
workers accurately. In the old days, timekeeping had to be done manually with physical punch cards
and timesheets. Now, many of these manual operations are computerized. The manual methods still
exist, but there are numerous advantages to using a computerized payroll system.
A computerized payroll system performs the same functions that manual methods of payroll do. It
stores employee data, such as names, addresses, social security numbers, pay rates and withholding
allowances of each person. It calculates payroll taxes and deductions and keeps all data up-to-date
after each pay period. Many payroll systems perform accounting functions, such as preparing general
ledger entries and documents used for tax purposes, such as W-2 statements and quarterly financial
While each computerized payroll software is setup differently, most have a standard user interface
with menu items, windows and buttons designed to make the process efficient for whomever uses it.
For example, the software may have standard "File" and "Edit" drop-down menus that contain
functions like "print" and "save." It may also have menu buttons you can click to access different
sections of the payroll system. For example, one section may be devoted to employee accounts, one
for payroll data and another for reports or graphs. Within each section, you'll often find tabs, folders
and spreadsheet-like grid cells so you can navigate the system and view data in an organized fashion.
Computerized payroll software automates many functions, which saves both time and resources. For
example, it automatically calculates figures, such as employees' earnings, based on inputs. Though
some data must be collected and input manually, such as new hire information, the computerized
system keeps it organized so you can access and update it electronically as needed. Some payroll
software can be integrated with other record-keeping functions, such as time clocks. For example, the
time and date that's recorded when an employee swipes his electronic card can be imported into some
payroll software programs. Computerized payroll systems also decrease error rates as most of the
processing is performed by the computer instead of humans.
The cost of a computerized payroll depends on your organization and the type of software you need.
For many organizations, the payroll software may be integrated with other business applications that
also handle management and accounting functions. Smaller businesses can invest in off-the-shelf, lowend software designed only for a few functions, such as payroll, invoicing and financial reporting. Midmarket software typically serves organizations that must comply with national accounting standards.
High-end payroll software may be part of a larger enterprise resource planning software package that
can be tailored to the needs of the particular company.
Benefits To Employees And Bosses
There are benefits from the employees perspective as well. If an employee wishes to see their total
hours worked for the pay period, they can log into his account and retrieve this information at any
time. There is no need to contact the payroll manager for this information. This gives the employee
more control over viewing their payroll information.
Eliminate Missing Timecards
Manual timecards and timesheets can be misplaced. If a punch card is missing, there is no way to
recover that data. Also, the physical timecards or timesheets have to be submitted to the payroll
manager on time. If the payroll manager does not receive them on time, payment for that employee,
as well as the entire staff can be delayed.
Electronic Stored Data
A computerized system uses no physical timecards or timesheets. All information is stored on a secure
server, and the data is routinely backed up. There is no risk of a loss in data. The payroll manager also
does not have to rely on the receipt of all punch cards before processing payroll. That data is readily
available and retrievable, whenever required.
Fix Human Error Easily
Manual systems are vulnerable to human errors. If a payroll clerk has to take information from punch
cards and key in that information into a spreadsheet, typing errors can be made. If an employee is
overpaid or underpaid because of errors, it will take more time and money to fix these errors, and can
result in low morale.
Computerized Payroll System Accuracy

A computerized payroll system eliminates these types of manual errors. The time clocked in and out is
directly fed into the software with no manual transferring of data. Time tracking software has been
updated for todays working conditions.
When payroll functions are computerized, accuracy and efficiency can be greatly improved. A company
can save money and time in their payroll operation
Payroll vouchers are used to process unencumbered payments to employees of the university. All payroll payments
are subject to employment taxes and are reportable wages on IRS Form W-2.
Payroll vouchers are processed in *DEFINE via the OV1, OV2, OV5, OV6, and OV7 commands or may require
manual handling on a Departmental (Manual) Payroll Voucher. Manual vouchers are often necessary when a more
thorough review has been deemed appropriate, when fiscal year deadlines were missed, or to appropriately tax and
classify non-standard payments for reporting purposes.

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