Go to work, clock in, get paid…right? In our modern world, getting paid is so easy it feels like a given. Employees can count on receiving their paychecks in full, on time, effortlessly. For many of us, our paychecks are deposited straight into our bank accounts, where we can access our funds immediately. It’s all so easy we hardly think about it!
But payroll hasn’t always been so simple. Have you ever thought about HOW your paycheck arrives…or WHY it works the way it does? Over the years, payroll practices have evolved along with our culture and technology, eventually resulting in the streamlined payroll processes we use today. So, how did payroll begin, and how did we get here? Let’s check it out!
The Earliest Form of Payroll
Payroll, in some form, has been in use for as long as humans have been trading goods and services – which is to say, payroll has been around for a VERY long time. In fact, the earliest known payroll record dates all the way back to somewhere between 3100 and 3000BC, when a clay tablet was inscribed with records detailing the amount of beer paid to workers as their rations.
Payroll in Ancient Civilizations
We have the Ancient Greeks to thank for many of our modern conveniences, including everyday items like maps, umbrellas, and alarm clocks. Remarkably, payroll also has roots in Ancient Athens. Several thousand years after that clay tablet was inscribed with beer rations, the Ancient Greeks devised the first system that resembles the HR and payroll practices we utilize today. Under this system, Athenian treasurers and clerks kept track of financial records by chiseling the information into stone.
Of course, the Ancient Greeks later served as an inspiration to the Roman Empire, who adopted and built upon many Athenian practices. While bartering was commonplace at the time, the Romans paid their soldiers a salary, keeping track of their finances on papyrus, wax tablets, or inscriptions into stone or lead. Three times a year, Roman soldiers received their “stipendium,” which was subject to fees for items like food, equipment, and clothing, reducing their payment by 20-50%! Sound familiar? It should! This was one of the earliest examples of what we now know as a payroll tax.
Payroll in the Middle Ages
The first consistent records of tracked employee pay date back to the in the 14th and 15th centuries. In Medieval England, most agricultural workers were paid in goods (also known as an “in-kind” payment) like grains or accommodations. Peasants and farm laborers typically received minimal compensation for their work, making just enough to survive. Meanwhile, skilled craftsmen, soldiers, and knights were paid in coin, with records generally being kept on papyrus or stone tablets.
The Industrial Revolution
When the Industrial Revolution began in 1760, new technologies replaced the need for skilled artisans, and work evolved from agricultural work to factory labor. As a result, a new, professional dynamic emerged between employers and employees – and it didn’t often favor the workers. Labor laws were soon introduced to protect workers from being taken advantage of, and new taxes naturally followed. Without the technology we have today, payroll at this time was a long and laborious task. Employers had to record attendance, tally wages, and calculate payroll deductions all by hand, leading to frequent errors, inaccuracies, and delays.
Modern Payroll Practices
As technology has evolved, so too have our payroll processes. Through the 1980’s and 1990’s, computers, the internet, and advanced software transformed our payroll practices, making them more accurate and efficient than ever before. Since then, technology has continued to evolve, creating additional opportunities to streamline and improve payroll practices. Gone are the days of calculating payroll painstakingly by hand. In the 21 st century, we use portable devices like laptops and cellphones to manage our payroll needs – simply, conveniently, anytime, and anywhere.
Today, Primepoint combines powerful teamwork with cutting-edge technology to deliver superior customer service and exceptional payroll solutions. Backed by modern systems that leverage digital platforms and advanced AI engines, we’re ready and eager to step into the future of payroll.