What is a payroll API?

What is a payroll API?

Many companies are now starting to open up their platforms with APIs to enable different software to communicate.

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What is an API?

API quite simply stands for application programming interface, and this acronym belongs alongside others such as SDK (software development kit).

Why is a payroll API useful?

A payroll API like the one that ShiftAI's Payroll & HR product has enables certain parameters to be automatically queried and this enables payroll to be calculated. This is particularly useful if your company uses time management software tracking employee hours and you want it to automatically feed that information into the payroll so that the correct wages can be calculated per employee. This saves the payroll administrator the step involved of copying over work time per employee and then managing multiple system. This is frequently where input errors can lead to mistakes being propagated and is also time consuming. The payroll API enables the two different software to communicate and hence is a much more efficient solution without the need for the time management software to build a payroll system and the payroll system having to build a time management module. This lets both companies focus on the products they build best while providing the functionality offered by the other.

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