Payroll Functions Provide an original and substantive response to the questions

Question

Payroll Functions Provide an original and substantive response to the questions posed in your Journal in a minimum of 200 words. In learning about auditing various company operations, you read about payroll as another area that is subject to fraud and errors.

Choose any of the payroll functions, such as timekeeping, entering new employees, issuing payroll checks, etc.

Create a written narrative that describes your chosen process in terms of:

transactions processed,

employees and the tasks they perform,

documents prepared,

records maintained,

and the segregation of duties.

Please help me come up with a 200 word narrative. I am stuck!

Explanation / Answer

Payroll department is the most important department for any organization. All the salaries, pay slips, bonus, pay roll checks, new employee data records, existing employee data records, time keeping, compensation etc are taken care by the payroll department.

Please note- Payroll is a sub function of the HR department. Payroll deal with compensating the employees. Where as Human resources deal with the employee relations. Instead of referring it as HR department, i am referring it as pay roll department for convenience purpose only. (Please don't take me wrong, payroll is a part of HR department only.)

Let's see what is time keeping.

Time keeping - Time keeping is the function of the payroll department. During the payroll processing, time keeping checks the data of how many days an employee attended the duty, what is his IN-time and OUT-time, are there any deductions due to the late coming, over time compensation if any.

Transactions in the timekeeping - All the entries for IN - OUT are called as the transactions, all the overtime and late entries are also called as the transactions. All the entries are maintained in a transaction book. Thus ensures that the pay checks are given as per the pay roll.

The employees working in the time keeping department keeps a record of all the transactions. If an employee goes out on an emergency work or on some official work, a pass is issued to the employee with the IN and OuT times mentioned on the pass. The pass also mentions the maximum hours the employee can use the pass. Say for example if the pass is valid only for 2 hours, the employee has to come back to the company within two hours. Any exceed in the time could have a pay cut. So, all the IN-OUT transactions are recorded in the time office. The employees in the time office gives all the transaction data to the pay roll department for processing the salaries and pay checks.

All the documents that are related to the employees are maintained by the time office. Documents means, all the information about the employee timings, employee contact numbers, the shift timings and change of shifts are maintained by the time office to keep a tab on the entry and exit of the employee.

A record of the attendance is also maintained by the time office. This record is produced to the pay roll department.

Employees at the time office segregate the duties between themselves. All the record keeping and documents preparing are taken care by one person, attendance is taken care by another, all the approvals for special passes plus the entry and the exit timings are taken care by another. If the organization is big with huge transactions, there will be many employees taking care of different functions. If the organization is small, fewer people take care.

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