Information System - Paychex

An information system is any combination of information technology and people's activities using that technology to support operations (and) management. {1} There are four main parts to an Information System. They are: Input, Processing, Output, and Feedback.

      Although the textbook did use a payroll example, I will elaborate that, as well as use a specific example, since this is part of my actual job. My company outsources our payroll to a company called “Paychex”, who tout themselves as “The Trusted Payroll Provider for Small & Mid Sized Businesses”. {2}

     The “input” is the gathering and capturing of raw data. This is where I gather all the approved timesheets from different company sources, to confirm each employees hours. The processing is where I input the information into the Paychex website, being sure of wages, hours, tax deductions, as well as personal information, such as an employee’s name, address, and social security numbers. Next is the output. This is where the direct deposits are distributed, as well as “live” checks printed. Finally, is the feedback stage, where I get the reports and totals for other accounting functions, as well if any corrections that may have to take place.

     As an added point of interest, Paychex has expanded to doing more than just payroll. They also now have added Human Resources Services, Health Benefits, and Retirement Savings. They are publicly traded on NASDAQ with the trading symbol PAYX. They closed today at $30.96/share. Their 52 week low is $24.65, and their 52 week high is $33.91.{3}

{1} “Information System” - Wikipedia http://en.wikipedia.org/wiki/Information_system

{2} “Paychex” – http://www.paychex.com/msn/paychexcorepayroll.aspx?WT.sp=b826KEY&mkwid=euNSf9YTC&pcrid=651777715&WT.srch=1&mm_campaign=07ce1fe39d81670ba28d73d17ddd0f8a&keyword=paychex

{3} “PAYX” MarketWatch - http://www.marketwatch.com/investing/stock/payx/historical