Payroll Applications
AS Level ICT
David Royall
The British School - Cairo
What you need to Learn
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Understand how ICT is used
to:
Produce payslips
What information goes on
to a payslip
Identify what Payroll
Applications can do
Identify Processing
methods used in Payroll
Identify Financial reports
required from payroll
Activity 1 – Data Storage
Use a table, as below ,to identify what data would be entered on to each FILE that is used to maintain
a businesses payroll system
Master File
Transaction File
What’s a Payroll?
It is a sum of all
financial
records in a
business of
salaries, wages,
bonuses and
deductions.
Activity 2 – Creating a Payslip
In a box (as below), draw out a payslip that might be appropriate for someone
like yourself working as a web designer for a small publishing company.
Remember, this is an OUTPUT form/report from a computer based system. (Use
the details you identified in activity 1).
What are Payslips?
It is a document that an employee receives either as a notice
that the direct deposit transaction has gone through, or as part
of their paycheck.
It details the gross income and all taxes and any other deductions
such as insurances or charitable contributions taken out of the
gross amount to arrive at the final net amount of the pay.
Activity 3 – Spreadsheet activity
Create a spreadsheet of a model payslip noting the
following
• Make sure the payslip has a heading
• Place the Transactions File data to the left of the payslip
• Place the Master File data to the left of the payslip
• Make sure the payslip is:
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Dated
Is nicely formatted
Has contact details in the event of a query
Has your name on it as part of a footer
If this has been set as a homework, then email to:
school@davidroyall.com
Paycheck
A paycheck is traditionally a paper
document issued by an employer
to pay an employee for work done.
a physical check for paying wages
and salaries has been uncommon
for the past several decades and
has been replaced by electronic
direct deposit to bank accounts.
Payroll savings program
A payroll savings program is
a method of automatically
deducting money from
one's paycheck and
depositing it into a savings
account.
That money is less likely to
be spent as those funds are
made less available, so
there’s a reduced chance
that it will be spent.
Payroll cards
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A payroll card is a card that allows an employee to access their paycheck
by using a card that looks like a bank debit card.
A payroll card can be more convenient than using a check cashier,
because it can be used at participating automatic teller machines (ATM)
to withdraw cash, or in shops to make purchases.
The payroll card account usually is held as a single account in the
employer's name. That account holds the payroll funds for all
employees using the payroll card system. Some payroll card programs
establish a separate account for each employee, but others do not.
Most payroll cards will charge a fee if used at an ATM more than once
per pay period.
Payroll professionals
In several countries to be a payroll professionals, one has to
be qualified e.g.: in the U.S.A Payroll Professionals are
Certified by the American Payroll Association.
They are designated as Fundamental Payroll Consultant
(FPC) or Certified Payroll Professional (CPP) after passing the
appropriate certification exam.
Warrants
Warrants look like checks.
Warrants are issued for payroll to
individuals and for accounts
payable.
A warrant is not payable on demand
and may not be negotiable.
Payroll hardware
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A simple computer is what
is required!
Payroll software
Comacc Payroll
IMS Payroll
Sage
Pegasus
Financial reports
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Financial reports
are formal records
of a business'
financial activities.
These statements
provide an
overview of a
business'
profitability and
financial condition
in both short and
long term.
Types of Financial reports
Balance Sheet
Profit and Loss account
Statement of retained earnings
Statement of cash flows
Purpose of financial statements
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The objective of financial statements is to provide
information about the financial strength,
performance and changes in financial position of an
enterprise that is useful to a wide range of users in
making economic decisions.
Financial statements should be understandable,
relevant, reliable and comparable.
The reported assets, liabilities and equity are
directly related to an organization's financial
position.
Reported income and expenses are directly related
to an organization's financial performance.
Questions
1. Identify both
hardware and
software for a
Payroll
Application
needed by a
business that
employs 20 staff
2. How can ebanking help with
Payroll
Applications?