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  • 1. Features of Payroll System Automatic Calculations A computer payroll system has the ability to automatically compute wages that an employee has worked after time data has been uploaded or input. The computing of an employee's time can include deductions for tardiness, vacations, personal hours, sick days and absences. These systems can calculate shift premiums and allow for overtime worked. Bonuses and commissions can be set to automatically disburse to the employee's paycheck on a schedule set by the payroll administrator. Security Setting up a computer payroll system can add security to the private information of a company's employees. Names, address and social security numbers are included in payroll systems. The information in the wrong hands can cause problems for the business and employees. A payroll system allows an administrator to set up different users and control access by person. This means that different users have access to different information, depending on the user-profile. A payroll system also provides an audit trail. The system records all user transactions, log-in dates and transactions performed. Reports Computer payroll systems generate a variety of reports. These reports include employee files with hiring and termination information, tax information and pay stubs for each employee, a check register and check printing. The system may provide special reports that a company accountant can use including cost accounting reports and tax liability reports. Reports can be created with a variety of criteria and most systems have ad-hoc reporting capabilities as well.