A computer payroll system automatically calculates wages and deductions for employees based on input time data. It can account for tardiness, absences, vacations, and other time-related factors in determining pay. The system also securely stores private employee information with different access levels for administrators and users, and provides an audit trail of transactions. It generates a variety of reports including pay stubs, tax information, check registers, and special accounting reports to help manage payroll costs and tax liabilities.