What’s the big deal about Payroll processing automation

May 8, 2019 2:00 pm

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Ever went through the pain of processing payroll manually?

If the answer to the above question is a “YES”, then this article is made for you.

What is payroll automation?

A payroll system is a system that employers use to ascertain the amount to be paid to their workers for work done. In the past, preparing payroll is always a tedious task for the company’s HR because it involves collecting information manually within the organization, the task, however, might not always be completed on time and might eventually have some errors. This gave rise to the need for a fast and efficient method of preparing a payroll.

With the advent in technology comes the automation of payroll system. It is the use of a system by an organization to prepare its paycheck and manage payment duties. The automated payroll system is also part of the organization’s human resource planning to show an overall view of the company’s finance and resources at a glance. An automated payroll helps organizations and employers to prepare its payroll through a computerized system. It is fast compared with the manual methods, it is simple to use, and it reduces error. Below are the benefits of an automated payroll system.

Saves time

One of the major advantages that the automated payroll system has over the manual system is that it gets the job done at a faster rate. Compared with the manual system that will have to collect detailed information with no slight error using a spreadsheet every time a payroll is to be prepared, the automated system calculates swiftly the salary or wages for each worker.

Data storage is guaranteed


You only need to upload or input the data once.

The data is stored safely upon input and there won’t be the need for the preparation of payroll at the end of the month or when wages are to be paid. All you need to do is a click on the button for the payroll to be generated.


Unlike manual system where data might be seen by anybody who stumbles on it or can even be lost to strangers, an automated payroll system can have a permission activation setting for different employee level in the organization. You can decide who has full access to the payroll system while employee just has access to their own payslip.


The result from research conducted by the American Payroll Association (APA) shows that the error made by the manual system is always about 1%-8% of either over or understatement of workers salary. With the automated payroll system, there is no error while calculating salaries and deduction.


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