Question

Payroll is one of the inherently risky accounts for all companies. Examine the way that you are paid at your place of employment and assess what payroll controls seem to be in place there. For example, do you get a check or direct deposit? How is your pay per period assessed? What if you want to change some of your personal information? What is the process to make changes? (250 to 300 words)

Answer 1

Payroll is the most important aspect for the company as it contains all data, personal as well as Financial data of all employees of the company. Employees are the key assets for any company.

There are various types of making payments to employees which company can choose from such as cheque or Direct transfers. Both of them have some pros and cons which are mentioned below.

Cheque

1. As cheques are handed directly to employees, employees have feeling of safety that their salary has been received by them.
2. Cheque slips can also be produced in case of employment under new company
3. With the increase in customers visiting in banks, it takes a lot of time to deposit the cheque in bank account.
4. Companies found it very expensive ad they sometimes have to issue lot of cheques
5. There is delay between depositing the cheque and crediting the amount in bank account

Direct deposits

1. The salary is credited instantly in banks with no delays in time period as its a fastest way to transfer the money.
2. No need to visit bank for depositing salary/cheques.
3. Companies find these methods very easy to use as well as user friendly saving lot of time and money.
4. However even if there is single digit error in employee’s account number or Bank code, such money may be credited to some another person instead of employees.

Generally companies asses the pay period on different basis such as

1. No of days worked-any industry
2. No of hours worked- IT Industry
3. No of units sold- Marketing Industry
4. No of units produced-production dept.

In case someone needs to change the personal biodata in company’s payroll records such as change in Telephone number or change in Bank account details or any another changes, formal application is required to be sent via email or by hand delivery to respective HR MANAGER as well as PAYROLL MANAGER.