The conditions that are oftentimes used as basis for varying payroll system are through hour-rates or through piece-rates. Hour-rate payroll system entails salary and compensation to employees on the basis of the number of hour served during the agreed upon payroll period. On the other hand, piece-rate payroll system provides payment for employees on the basis of the number of output he has produced during the payroll period.

There are also other factors that are involved in the processing of the payroll system. For one, there is a difference between each employee’s gross salary and net salary. The gross salary encompasses the whole value of an employee’s agreed upon salary according to the contract. The net salary is the gross salary computed with the necessary deductions such as withholding tax, social service contributions, medical insurance and loan payments if there are any. The computation for the net salary of each employee can be easily managed with use of accounting software dedicated to perform such function.