Irish Times, 2002 defines payroll system as “a system whereby workers are being paid according to their level of productivity”. Emphasis was also made on the method and manner in which salaries and wages are prepared in different organizations. Armstrong (2000) defines payroll as “a list of employees by a company and the amount of money to be paid to each of them”. This therefore led to payroll system,where employee’s remuneration can be tabulated on paper showing their total emoluments. The payment of wages and salaries on payroll therefore become the usual practice in organization or tertiary institutions in the country for remunerating their employees. It is important that standard payroll procedure be followed to ensure that satisfactory authorization takes place prior to payroll computation or payment and that adequate record are maintained and also analysed in details to assist the organization in decision making in the future.
Payroll processing refers to the tasks of managing the payment of wages by a company to its eployees. The steps involved in payroll processing typically include gathering employee time information for a selected time period, managing benefits ; deductions, and distributing employee pay for that time period. Most of the companies use either a payroll software system for payroll processing, or else a third-party payroll processing service.