Please enable JavaScript.
Coggle requires JavaScript to display documents.
Payroll and HR Function - Coggle Diagram
Payroll and HR Function
Documents used:
- Employee's file
- Payroll amendment forms
- Updated list of employee details
Controls:
- Conduct interviews with all applicants, with the relevant department head present.
- Ensure all appointments and dismissals/resignations are approved by a senior official with supporting documentation.
- Decide on changes to pay rates, promotions, and service conditions after consulting with interested parties and considering relevant laws and regulations.
- Document and obtain approval from the authorizing body for all changes, such as a wage committee.
- Record changes on sequentially pre-numbered payroll amendment forms and support with additional documentation, authorized and signed by senior management.
- Maintain all relevant documents, including application forms, personal details, appointment letters, authorization for deductions, employment contracts, and payroll amendment forms in each employee file.
Functions:
- Human resources function
- Timekeeping function
- Payroll preparation function
- Payment preparation and pay-out function
- Deductions, payments and recording function
Documents used:
- Blank clock cards
- Hours recorded on clock
- Batch control sheet and batch register
Controls
Foreman responsibilites
- Maintain a record of personnel present and time worked.
- Sign clock cards to approve hours worked.
- Have their clock card approved by a senior official
Entry and exit points
- Limited to one access point
- Protected by "turn style" mechanism
- Supervised during clocking periods
Overtime
- Authorized according to company policy by the factory manager or foreman.
- Foreman's overtime must be authorized by the factory manager.
Clock cards
- Numerically accounted for
- Issued by personnel department
- Stored at clock machine under supervision
Clock procedures
- At entrance/ exit so that personnel cannot leave without clocking
- Supervision to prevent employees from clocking in for absentees
- Payroll preparation function
Documents used:
- Clock cards
- Updated list of employees
- Payroll (wage journal)
- Week to week reconciliation
Controls:
- Payroll hours are sourced directly from clock cards or computer transaction files.
- Wage rates and deductions are retrieved from personnel records or master files.
- Calculations are reviewed by an independent party, ensuring accuracy (e.g., one wage clerk checking another's work).
- Senior personnel must inspect the payroll and week-to-week reconciliations before authorizing payments.
- All personnel must sign the payroll as evidence of their performed functions.
- Payment preparation and pay-out function
Documents used:
- Authorised payroll
- Payroll
- Payslips
- Pay-packets
- Unclaimed wages register
Controls
- Management of unclaimed wages
- Paymaster and foreman reconcile unclaimed packets with payroll.
- Unclaimed wages registered and securely locked away.
- Regular reconciliations and reviews of register for unusual occurrences.
- Unclaimed wages remaining after two weeks are banked, with deposit slip attached to register.
2.Banking of wages
- Cheques cashed by two or more persons at irregular times and routes.
- Preferable to use a security company for wage pay-outs.
4.Payment process
- Done by personnel not involved in wage compilation.
- Foreman identifies employees but doesn't handle pay-out.
- Employees sign payroll upon receipt, foreman signs afterward as proof of supervision.
- Wage Cheque Authorization
- Two signatories, one senior management, must sign wage cheques.
- Presentation of cheque with current and previous payroll and supporting documentation
- Senior employee compares payroll to the cheque and validates changes.
- Payroll and documentation are cancelled after approval.
- Two wage department members prepare packets with tight cash handling security.
- Preferably done by independent persons not involved in payroll preparation.
- Packet includes wage details and undergoes independent review.
- Deductions, payments and recording function
Documents used:
- General ledger
- Payroll (wage journal)
- Cash payments journal
- Return form
Controls:
- Appointing risk compliance officers
- Risk management policies