Question

As mentioned in the opening part of the Robatelli's Pizzeria case, there are now 53 locations throughout the greater Pittsburgh area. Each one of those restaurant locations employs a full-time store manager and varying numbers of kitchen staff, servers, and delivery staff. The kitchen staff, servers, and delivery staff vary between full-time and part-time status. There tend to be high rates of turnover, especially among the part-time staff. Robatelli's pays its employees on a weekly basis each Friday for the week ending on the previous Saturday. Employee paychecks include withholdings for federal taxes as well as state and local taxes applicable for the employee's residence. Employees may live in one of three states and over 25 municipalities that are included in the greater Pittsburgh regional area. All payroll accounting is handled by Robatelli's at its home office.

Each restaurant must also maintain various fixed assets in order to operate.Following is a general list of fixed assets for each store:

 Furniture and store fixtures, including tables, chairs, and built-in items such as shelving, counters, and booths

 Kitchen equipments, such as refrigerators, stoves, ovens, and dishwashing machines

 Computers Note that the number of each of these fixed assets maintained at each location varies, depending upon the size of the store. Also note that each member of the delivery staff uses his or her personal automobile (rather than a company-owned car) for customer deliveries.

In addition, the home office maintains the following types of fixed assets:

 Land and the office building

 Office furniture and fixtures

 Computers and other office equipment

 Telephone systems

Finally, fixed assets maintained at the commissary include the following:

 Fixtures, such as built-in cabinets and shelving

 Kitchen equipment

 Computers

 Delivery trucks

All fixed asset accounting is handled by Robatelli's at its home office.

Required:

a. Describe how you believe an efficient and effective payroll system should be organized at Robatelli's. Include details such as the answers to these questions:

(a) What types of payroll documentation should be prepared at the restaurant locations?

(b) How will the necessary information for payroll flow between restaurants and the home office?

(c) How should IT systems be used in the payroll processes?

Answer 1

(a) Proper documentation at restaurant location includes maintaining employee file for each employee. This includes maintaining their KYC records, personal bio data, pay slips, their gross entitlement/benefit etc. Capturing  and improving documentation will ensure proper compliance by Robatelli.

(b) The data entry done in restaurant locations must be synchronized with the home office if Robatelli. This will allow flow of information on timely basis to Robatelli.  These two systems must be integrated so that information can be viewed and edited at both places.

(c) IT system plays an important role in timely process of payroll for payment. Currently as when maintaining and processing of payroll at different location takes more time. Hence by deployment of IT system will reduce the payroll processing time and the workers will be get timely payment. This will enhance the more and hence better productivity can be achieved.