Payroll software automates the process of paying salaried, hourly and contingent employees. Vendors of human resources, technology and specialized payroll companies often sell payroll software as a stand-alone system.
Payroll software is increasingly a central component of integrated, multifunctional human capital management (HCM) systems. Compared to paper-based systems, payroll software significantly speeds the payroll process while reducing errors and enabling managers to more easily customize paychecks for individual employees.
