CHAPTER ONE:

1.0 INTRODUCTION

1.1 Background of the Study

A payroll is a company’s list or records of its employees, which is often used to refer to the total amount of money that a company pays to its employees.

The term Payroll refers to a series of accounting transactions involved in the process of paying employees for the services rendered after taking all the statutory and non-statutory deductions into account, in conformance with the terms of employment, company policy and the law of the land i.e., payment of payroll taxes, insurance premiums, employee benefits and other deductions. An efficient payroll system facilitates an error-free, accurate and timely employee payment while ensuring that the employment is well within the valid work permit

A payroll system is software which organizes and arranges all the tasks of employee payment and the filing of employee taxes. These tasks may include keeping tracking of hours, calculating wages, withholding taxes and deductions,

Net pay, Payroll software plays several roles for the user, the employees and the company, such as: giving you supper easy ways to manage employee calendar (e.g, deduction,   and overtime), gives you latest tax updates you when by notifying you when the updates arrive, allows you to quickly and easily generate payslips for all your employees, serves as a reminder. Payroll also makes deductions from employees wages for taxes, wage garnishment, health and life insurance, spending accounts and retirement investments. Payroll works with your accounting department to ensure that wage deductions and other payroll expenses are paid and properly reported. 

In an organization, there are several departments and each department has a payroll section to manage its payroll activities. Each section has to perform necessary personnel operations like data collection and preparation, entry, updates, monitoring and reporting of data. Many of these existing practices and procedures need to be reassessed at this time of changing needs, changing demands of employees and changing technologies So an organization needs an integrated web based payroll system that would integrate personnel and pay- roll related data collection, processing in individual departments and payroll audit in a more efficient and streamlined way. With this computer based payroll system, payroll section would be able to keep a record of employees including their personnel data, pay band, allowances, deductions, savings and taxes etc.. Net pay of each employee is calculated by using the information about his allowances and deductions. All these complex calculations have been incorporated herein. Many optional allowances and deductions for the employees are added by specifying the corresponding details. The individual pay slips and deduction vouchers are printed out as a receipt. Pay bands, grade pay, allowances, deductions and tax information are updated if there is an amendment in salary structure.

A payroll is a list of the employees and the payments due to each employee for a specific pay period. A pay period is the amount of time over which an employee is paid. Most businesses use weekly, biweekly (every two weeks), semimonthly (twice a month), or monthly pay periods.

1. 1. This material content is developed to serve as a GUIDE for students to conduct academic research work
2. 2. As a source for additional understanding of the subject.
3. 3. As a source for ideas for your own research work (if properly referenced).
4. 4. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)
5. 5. Direct citing (if referenced properly)
Thank you so much for your respect to the authors copyright.