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THE HUMAN RESOURCES MANAGEMENT & PAYROLL CYCLE - Coggle Diagram
THE HUMAN RESOURCES MANAGEMENT & PAYROLL CYCLE
The human resources management (HRM)/payroll cycle is a recurring set of business activities and related data processing operations associated with effectively managing the employee workforce.
The more important tasks include the following
Recruiting and hiring new employees
Compensation (payroll)
Job assignment
Discharge of employees due to voluntary or involuntary termination
Performance evaluation
Training
knowledge management systems is a software that stores and organizes expertise possessed by individual employees so that the knowledge can be shared and used by others.
Payroll Cycle Activities
Update Payroll Master Database
the HRM department is responsible for updating the payroll master database for internally initiated changes related to employment
the payroll department updates information about tax rates and other payroll deductions when it receives notification of changes from various government units and insurance companies
Prepare Payroll
Payroll transaction data is edited, and the validated transactions are then sorted by employee number.
The payroll and deduction registers are created.
Payroll register is a listing of payroll data for each employee for a payroll period.
Deduction register is a report listing the miscellaneous voluntary deductions for each employee.
the system prints employee paychecks (or facsimiles, in the case of direct deposit).
earnings statement is a report listing the amount of gross pay, deductions, and net pay for the current period and the year-to-date totals for each category
three types of data processing integrity controls that can mitigate the threat of payroll errors
Batch totals
Cross-footing the payroll register
A payroll clearing account
Disburse Payroll
After paychecks have been prepared, accounts payable reviews and approves the payroll register.
After reviewing the payroll register and disbursement voucher, the cashier then prepares and signs a check (or initiates an electronic funds transfer [EFT] transaction) transferring funds to the company’s payroll bank account.
Validate Time and Attendance Data
Time card is a document that records the employee’s arrival and departure times for each work shift.
Time sheet is a data entry screen (or paper document) used by salaried professionals to record how much time was spent performing various tasks for specific clients.
Calculate and Disburse Employer-Paid Benefits, Taxes, and Voluntary Employee Deductions
flexible benefits plans is a plan under which each employee receives some minimum coverage in medical insurance and pension contributions, plus additional benefit “credits” that can be used to acquire extra vacation time or additional health insurance.
Outsourcing Options: Payroll Service Bureaus and
Professional Employer Organizations
payroll service bureau is an organization that maintains the payroll master file for each of its clients and performs their payroll processing activities for a fee.
professional employer organization (PEO) is an organization that processes payroll and also provides human resource management services such as employee benefit design and administration.
Wider range of benefits
Freeing up of computer resources
Reduced costs