Content page
Page 1 title page
Page 3 introduction
Page 4 past and present payroll
Page 5 impact and conclusion
Page 6 bibliography
Introduction:
In the recent years computers and computerised software have made a great difference to accounting. Working in payroll was once a extremely time consuming job with a much higher chance of human error, however the introduction of programs such as MYOB have made payroll much quicker and lessened the chances of making a mistake.
Past and present payroll
How payroll was done in the past:
In the past payroll was all done manually in large books, these were carbon paper books as every time something was written to give to an employee the company needed to keep it to so they would write it in carbon paper books to save having to write it twice. The person/people working in pay roll either had to know each employee’s pay rate, the allowances and deductions they were entitled to and whether the employee was casual or permanent, or look these details up every time their pay was done.
The payroll specialist (1987-1991) at Bells Asbestos removal and installation explained how their pay roll was done. She said that every calculation that they did was done by hand or on a calculator, and she needed to know all the different rates of pay within the business, and for each person she paid if they were trades men, sheet metal workers, labourers or builders (as each job had a different rate of pay), the deductions each employee had taken out of their pay such as union fees, superannuation and child support, she also needed to know their allowances, some of these were living away from home, meal allowances and different allowances for different sites they were working on. She also had a tax schedule/table with the rate of PAYG tax a person must pay for what he/she earns and from that she had to manually work out the tax and take it from the pay each fortnight. The company also had a card for every employee with all their information on it if anything ever had to looked up and on the card was a record of how many days personal/holiday leave they had taken.
How payroll is done now:
Now a day’s things such as pay rates, employee information (holidays, allowances, awards and deductions) are all stored in programs on the computer, when a employee is paid the computer will automatically work out from the information stored in it how much a person is paid, how much will be taken out in deductions, how much will be added on in allowances and awards (such as overtime and public holidays) and how much tax the person pays.
The impact computers have made:
Having computerized software doing all the calculations mentioned above automatically means the payroll process is now much, much quicker than it used to be, there is also less chance of human error and less paper wastage as so much of the information is stored on the computer. One negative to having everything on the computer is that it is much easier to lose all your files and information (if the system crashes), however this can be fixed by ensuring you have a backup copy of all your files on another computer preferably off base.
Conclusion:
The introduction of computerised software such as MYOB to improve accounting practices has improved the payroll process greatly. It is now much easier to do a person’s pay as all their details such as pay rates, awards, allowances and deductions are stored on the program and no longer need to be memorised.
Bibliography
Step by step approach to processing payroll, Mirian Brown, software publications Pty. ltd. 2011
Interview with pay roll specialist, bells asbestos removal and insulation 1987-1991 (Debbie Ireland)
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