Final answer:
Automation of data collection for payroll means using payroll software to manage and streamline the process of calculating wages, withholding taxes, and ensuring legal compliance.
Step-by-step explanation:
The automation of data collection for payroll means that payroll related information is stored and managed in a digital system, often referred to as payroll software. This software automates the process of calculating wages, withholding taxes and deductions, and distributing pay. Payroll automation reduces the likelihood of human errors, saves time, and ensures compliance with tax laws and employment legislation.
Typically, such systems will collect data on hours worked through digital timekeeping systems, process the data according to the rules set within the payroll system, and generate necessary records for both the employer and the employees. This makes the overall payroll process more efficient and reliable.