Payroll Accounting, Page 5

Objectives of a Payroll System

The main objectives of a payroll system are: 

• To collect and process information needed to prepare and issue payroll checks. 
• To generate payroll records for accounting and reporting purposes to all stakeholders (or those who have an interest in the organization).

Large organizations often hire a payroll clerk whose responsibilities include: 

1. Verifying that the employees are paid on time 
2. Ensuring that each employee is paid the correct amount 
3. Finishing payroll records 
4. Submitting payroll reports 
5. Preparing and paying payroll taxes