Imagine owning a small business with three employees: Alice, Bob, and Carol. Each month, you need to pay your employees for their work hours.
First, you would collect and input each employee’s contributed time and attendance data. It might involve tracking the working hours, vacation period or sick time they have taken. Next, you would use this data to calculate the pay for each employee.
To calculate pay:
Multiply the hours worked by the employee’s with hourly rate.
Add any extra pay or bonuses (if any).
Issue the paycheck or make the payment.
That’s just an easy way to understand Payroll Management. Let’s dig into this subjectively.