Which step is NOT part of the payroll system?

The step that is not part of the payroll system is the transfer of funds to suppliers. In the context of payroll systems, the primary focus is on managing employee compensation. This includes processes such as recording attendance through clock cards, calculating gross pay and deductions, and producing payslips for employees.

Transferring funds to suppliers relates to accounts payable and financial management, rather than payroll. While it may be necessary to ensure that payroll taxes or other payments related to employee benefits are made, these actions do not constitute direct payroll processing or management of employee wages. Thus, it clearly distinguishes the payroll system from other accounting and financial systems, reinforcing the specific functions and responsibilities of payroll.