Payroll is essentially how employees are paid. Its the legal paperwork involved. There's more to payroll than just handing out cash or checks, however. After gathering data on what employees have done and comparing it to their salaries, some simple payday mathematics will let the employer hand out the dough. Right? Wrong. Its still more complicated than that; especially if all these employees belong to a large company.

Read more: What is Payroll?

Whether taking into consideration tax deduction, salary calculation or leave computation, all organizations be it a smaller one or a bigger one use payroll systems. Earlier companies were not having their own payroll system so they used to contract other companies that were specialized in this field. These organizations used to take the contracts to process the payroll of each and every employee and then they used to deliver them to their clients.

Read more: Using Payroll Software