Payroll automation[1] refers to the use of computers to produce paychecks and manage benefit payments for a company or community.
Often, payroll automation is integrated into the company's enterprise resource planning system that provides an overall view of the company's or community's finances; in addition to payroll, it can manage customer relationships, production, personnel resources, invoicing and accounting.
Payroll functions can be automated using software to facilitate the collection, organization and storage of all information required for payroll calculations and regulatory agency reportage requirements.
If the payroll software is not purchased as part of a comprehensive business management system, it can usually be combined with the company's existing solutions for accounting, sales ledger, working hour management and recruiting.
Effective payroll automation collects all relevant information in one place in electronic format, reducing mistakes by eliminating the need to synchronize and manage otherwise duplicate data sets.