Employees work for a salary while businesses employ them to ensure the smooth running of their operations. Just as it is important for an employer to keep their work on point, so is it important for the employees to get paid on time and correctly. Payroll processing makes this happen.
Conventional payroll processing was prone to lots of errors. Today, payroll management software addresses most of the challenges that existed before they came. This short blog takes you through the evolution of payroll software.
Evolution of payroll processing
It is quite interesting to see how payroll processing has evolved. From the manual processing that took weeks to complete to today’s instant processing through payroll management software which automates everything with minimal human intervention.It was in the late 20th century that the first computerized payroll management came into existence. However, only a few of the world’s largest companies back then could afford it. The reason – it was too expensive and required specially trained staff.By the start of the 21st century, desktop computers became widespread and desktop-based payroll software, for instance, QuickBooks, Sage, etc. began to be the primary choices for larger businesses. However, these solutions were not feasible for smaller businesses. While these solutions made payroll processing much easier compared to how they were done manually, they still demanded experienced professionals to handle it. This led to the emergence of several payroll processing companies.At a payroll processing firm, they run payroll on behalf of other companies. They have dedicated staff to handle different tasks like tax calculation, compliance monitoring etc. and complete the pay-out via their sophisticated payroll management software.
