The payroll preparation function:
Description of Function: The aim is to to calculate gross wages, deductions from employees and net wages.
At the end of each week the details on the clock cards need to be calculated and collated so that the payroll can be drawn up.
This includes calculation of all hours worked, and must be split between overtime and normal hours as rates per hour for these two categories are different.
Total hours worked by an employee, multiplied by the corresponding rate per hour as per the employee’s permanent file, would equal to the amount that the employee is to be paid for the week.
It's important to remember that in this function appropriate deductions such as Employee Tax, must be extracted from authorised, up to date tables or, in the case of other deductions ,e.g. Pension Fund, must be deducted in terms of the authorisation form completed by the employee.
This information is then recorded on the payroll, also referred to as the wages journal