A payroll system involves everything that has to do with the payment of employees. This includes keeping track of hours, calculating wages and other deductions, printing and delivering checks.
A payroll system calculates the amount you owe to your employees based on factors, hourly wages or salaries. The system adjusts gross pay by calculating and subtracting taxes and other withholding amounts. On payday, the system provides your employees with paper checks or payroll deposits and a summary of the information you used to calculate their gross and net wages.