In: Accounting
Calculate the following net pay for each of the given set of employees.
Task 2: Control Procedures for Payroll Systems
Identify control procedures for payroll systems depending on the execution and recording of the related transactions.
Control procedures for payroll systems:
Control procedures are needed for payroll systems as it involves sensitive information of employees which is confidential in business perspective and also personal security towards employees.
Following are the control procedures required for payroll systems:
1. Audit of payroll records :
Auditing of payroll records assures paying right amounts to employees and government.
2. Approving Time card:
Hours declared by the employees and its approval on time card is required to make sure that employees are not manipulating their hours.
3. Separate bank account:
Opening a separate bank account for payroll ensures controlled outflow of money to employees and government. It also helps in avoiding other business money.
4. Payroll inspection:
Periodical and surprise inspections of payroll records ensures correct payroll records and mistakes gets noticed early before making the payment to employees.
5. Segregation of duties and responsibilities :
Segregate the duties and responsibilities of tasks in payroll which involves majorly hiring and advancing personnel, recording and maintaining accurate time sheets, preparing payroll and paying employees and payroll taxes.
6. Authorized access and security measures :
Access to payroll should be Authorized and proper security measures are implemented for such access and maintenance of payroll records.