Please enable JavaScript.
Coggle requires JavaScript to display documents.
Payroll function - Coggle Diagram
Payroll function
Controls for the HR Function
Changes to pay rates, promotions etc, should be verified with interested parties
All changes to be documented
Appointments and dismissals should be authorised by senior management.
Amendments should be recorded
Interviews conducted with applicants
Documents should be maintained in each employee file
Controls for timekeeping
Entry and exit points to the work area should
protected by a turn style mechanism
be supervised during clocking periods
be limited to one access point
Clock procedures
clocking machine to be situated at the entrance/exit
supervision over the clocking of employees
Clock cards should
be issued by personell department
stored at clock machine
Numerically accounted for
The foreman should:
Sign clock cards as evidence of approval of hours worked by the employee
The foreman's clock card should be approved by a senior official
Keep record of personnel present and time worked
Overtime should:
be authorised according to company policy
the foremans overtime is authorised by the factory manager
Controls to be implemented
The calculations and castings should be reviewed by an independent person.
Senior personal should inspect the payroll before payments are authorised
Wage rates, deductions should be obtained from personnel records or master files
All personel should sign payroll as proof of functions performed
Hours recorded should be obtained from the clock
Payment preparation and payout functions Documents used:
Payslips
Payroll
Pay-packets
Unclaimed wages register
Authorised payroll
Controls to be implemented
The make-up of wage packets should
preferably be done by independent persons
details on wage packet
done by two or more department members
money independently reviewed
The pay-out
done by independent person
foreman to identify employees
employees should sign as proof of reciept
foreman to sig as proof of supervision
The wages cheque should be cashed at the bank
not travelling on the same route
preferable to use security company to do wage pay-outs
not at regular times
two or more persons
Unclaimed wages
retained by paymaster
regular independent checks
details entered into unclaimed wage register
unclaimed after two weeks, to be banked
The wage cheque should be signed by two signatories
current payroll compared with previous payroll
senior official to compare the payroll tot he wages cheque
documentation should be presented for authorisation
the payroll should be stamped and signed
Payroll preparation function: Documents
Updated list of employees
Payroll(Wage Journal)
Clock Cards
Week to week reconciliation
Payment and recordings documentation
Payroll
Cash payments journal
General Ledger
Return form
Human Resource function documents
Payroll amendment forms
Updated list of employee details
Employee file
Timekeeping function : Documents
Hours recorded on clock
Batch control sheet abd batch register
Blank clock cards
Controls to be implemented to reduce risk
Appointing risk compliance officers
Risk management policies