Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following serves as an input to a payroll system?

1. Payslips

2. Tax code details

3. Clock cards or timesheets

4. Pension contributions

The correct answer is: Clock cards or timesheets

The payroll system requires accurate and timely data to calculate employee compensation, and clock cards or timesheets serve as a primary input in this process. They provide essential information regarding the hours worked by employees, including regular hours, overtime, and any absences. This data is crucial for determining the total payable amount to each employee, as the payroll system uses these inputs to calculate wages based on hourly rates or salaries. While payslips, tax code details, and pension contributions are important components of the payroll process, they are outputs or derived from the information entered into the system. For instance, payslips are generated after the payroll calculations have been completed, incorporating details such as deductions for taxes and pension schemes. Similarly, tax code details and pension contributions impact the final payroll calculations but are not direct inputs required for the initial payroll processing. The clock cards or timesheets represent the raw time data that drives the calculations in the payroll system.