What is a 'Payroll'?
The inputs to a payroll system are:
- Employee code (used to lookup the employee's other details, e.g. name, bank account, etc.)
- Hours worked
- Rate of pay (e.g. $25 per hour)
Pay = Hours Worked X Rate of Pay
The outputs from a payroll system are:
- A printed payslip (given to the employee to show how his/her pay was calculated)
- A cheque, or an EFT payment directly into the employee's bank account
How is a Payroll Processed?
This means that batch-processing is ideal for payroll processing:
- Working hours data is collected into a batch
- The data can be processed in one go at the end of the week/month
- The same calculations will be performed on all the data
- No user input is required during the processing
- The processing can be done during quiet times when the computer system is not being used for other things (e.g. at night)