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PAYROLL FUNCTION - Coggle Diagram
PAYROLL FUNCTION
General Controls
Supervision and review by management
Segregation of Duties
Rotation of duties
personnel take leave regularly
internal audit function
Sufficient stationery control
Scruitinise records and documents
ACCOUNTS AFFECTED
SCI
Gross salaries
Wages
Commissions
Bonuses
Manufacturing Wages
Director's emoluments
Employer contributions
SFP
Employees fore remuneration accrued
Accounts Payable - Payroll deductions
Accounts Payable - Employer Contributions
Bank
Journal
Dr Salaries / Wages
Cr Bank (Payables)
HR FUNCTION
Documentation
EMployee Files
Payroll Amendment Forms
Updated list of EMployees
Controls
Interviews (Head of Department)
Dismissals/resignations authorised
Changes documented
Amendments recorded (sequentially numbered)
Maintenance of employee file
THE TIMEKEEPING FUNCTION
Documentation
Blank clock cards
hours recorded on clock
Batch control Sheet
Batch register
Controls
Clock Procedures
Location at entrance/exit
supervised
Entry and Exit Points
limited to one point
turn style method
supervised
Clock cards
sequence check
issued by HR (or like)
stored with clock machine
no employee interference
Foreman duties
record to be kept
sign clock cards
foreman's card approved by senior
Overtime procedures
authorized
PAYROLL PREPARATION FUNCTION
Documentation
Clock cards
updated list of employees
Payroll (wage journal)
week to week recon
Controls
Hours from clock card
wage rates - HR file
calculations - independent person
senior person inspects payments
PAYMENT PREP AND PAYOUT FUNCTION
Documents
authorised payroll
payroll
payslips
pay-packets
unclaimed wages register
Controls
Wage Cheque
2 signatories (one senior management)
Compared
wage cheque vs payroll
compared vs previous
Cashed
Bank : 2 or more persons
not at regular times
not same route
security company
Wage packet
2 wage department memebers
details on packet
Pay out
inpedenpendt person
identidied by foreman
payroll signed by employees
identification needed
Unclaimed wages
unclaimed wagw register
independent recon
2 weeks: banked
PAYMENTS AND RECORDING FUNCTION
Documents
Generl Ledger
Payroll (wage journal)
cash payments journals
Return Form
Controls
Risk compliance officer
Risk management policies