PEST Analysis on payroll system

Sparkly

My tutor has recommended throught formal feedback that I complete a PEST analysis on my chosen system as part of my ICAS project to help meet the criteria of 'Explain the effect on users of changes to the accounting system caused by external regulations and organisational policies and procedures.

I've looked in my text book and the PEST analysis just gives a list of things that may fit in to each category, which I am struggling to relate to a payroll system, I've also tried google but have got no further! Is it sufficient just to list things e.g under Political list 'changes in NIC rates' or are you supposed to go in to more detail? I'm a bit confused by the whole PEST thing and how I'm supposed to fit it in!

Any advice or words of wisdom gratefully received!

Rinske

http://en.wikipedia.org/wiki/PEST_analysis

Thats the wiki answer to what a pest analysis is.

I would give a small summary of what the factors are and then list a number of things that are relevant for you and the reason why, rather than just giving a list.

But it might just be a small summary, depending on the size of the report so far! You don't want to go too far over the wordcount.

sdv

Sparkly wrote: »

............ to help meet the criteria of 'Explain the effect on users of changes to the accounting system caused by external regulations and organisational policies and procedures.

Any advice or words of wisdom gratefully received!

I would have thought that changes in Budget (personal tax allowance), change in employee's tax code, Local council tax deduction orders, Child maintence deduction order from the court etc would cover part of the above criteria.
The second half would be covered by having an iternal control in place to ensure that the payroll calculatons are double checked.

I don't think you need to do the PEST for payroll. You may want to ask your tutor to confirm this with his/AAT IV.
It's best to work with the assessor then going against the grain.

hope this helps