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CHAPTER 4
Payroll Best Practices 1
After reading this chapter you will be able to
• Understand how employees can alter their own payroll
deduction data
• Know why bar-coded time clocks can automate the collec-
tion of payroll data
• Understand why fewer payroll cycles lead to less processing
work by the payroll staff
• Learn how to streamline or eliminate the use of personal,
vacation, and sick time tracking systems
hough anyone can cobble together a payroll system that operates
moderately well, there are a number of steps that can be taken to
Tgreatly increase the efficiency of this operation.The steps are called
“best practices,” and are indicative of the work practices used by the
operators of highly efficient payroll operations. Though some payroll
best practices are clearly designed for larger companies with a multitude of
employees, others can be used to improve the operations of companies
of any size.
The following sections briefly describe a number of payroll best
practices, including the pros and cons of their use, any problems with
their implementation, and a graphical representation of their cost and
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