Importance of payroll system

Payroll is probably the most important application of any company and organization. Payroll system takes care of the payment to the employees of the company. Payroll processing requires the input of a large amount of data, along with numerous and sometimes complex computation. That's why payroll processing can be one of the most confusing and time-consuming tasks for employer.

Payroll and payroll-tax processing and reporting can be handled either internally by an organization's staff accountant or externally by an accounting firm or payroll service company. A much easier approach is to outsource the payroll processing function to accounting firm or payroll service company.

Outsourcing the payroll processing function shifts a number of key payroll processing tasks to a supplier, resulting in a significant drop in the payroll department's workload, its required level of expertise in operating computer software, and in the risk that payroll taxes will not be remitted to the government in a timely manner.