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Payroll function and the Human resource function - Coggle Diagram
Payroll function and the Human resource function
Five functions
The payroll preparation function
The payment preparation and pay-out function
The timekeeping function
The deductions: payments and recording function
The human resources (HR) function
Human Resources
Objective: Ensure proper maintenance of all matters in the personnel department
Responsibilities
Skilled in recruiting, counseling, negotiating, and labor law
Maintain employee records (e.g., permanent file)
Focus on hiring and dismissal of staff
Deal with all aspects of human capital
Ensure prompt implementation of pay rates and changes
Importance of accurate and complete records for valid employees:
Facilitates provision of information for valid clock cards or timesheets.
Timekeeping function
Frequency: Wage earners are paid weekly, with their remuneration dependent on the hours worked during that specific week
Recording Method: Employees typically use clock cards or time clocking devices to record entry and exit times, with daily hours totaled weekly for payroll preparation
Employees: Primarily relevant for wage earners, as opposed to salaried employees who typically receive fixed monthly payments
Integration: The data collected from timekeeping is forwarded to the payroll preparation function for further processing
Function: Timekeeping is essential for maintaining accurate records of valid hours worked by employees, ensuring they are remunerated accordingly.
Payroll Preparation
Process
At the end of each week, clock card details are calculated and collated for payroll preparation
Calculation includes total hours worked, distinguishing between overtime and normal hours with respective rates per hour
Total hours multiplied by the corresponding rate per hour from the employee’s permanent file determines the weekly pay
Deductions
Deductions such as Employee Tax are extracted from authorized, up-to-date tables
Other deductions (e.g., Pension Fund) are deducted based on the authorization form completed by the employee
Objective
Calculate gross wages, deductions, and net wages
Recording
Information regarding deductions is recorded on the payroll, also known as the wages journal
Payment preparation and pay-out and deductions: payments and recordings
Payment preparation and pay-out
Th objective of the function is to ensure that employees are paid their wages for only the hours which they have worked
Deductions: payments and recordings
The objective of this function is to ensure that these amounts owed to the relevant authorities are correct, paid over within the required period, and are supported by the relevant supporting documentation or return