Question

Payroll.Canada.Ontaio

You are the Payroll Administrator in a multi-jurisdictional organization that has employees across Canada. In addition to the regular financial aspects of the audit this year, the auditors for your organization are looking at the processes in place in certain areas of the Payroll Department. To speed up the process, the Payroll Manager is preparing documentation for the auditors to follow that outline various processes. Please prepare a memo for her outlining the general procedures for calculating the Workers’ Compensation assessment in all jurisdictions to be included in the documentation for the auditors.

Answer 1

To: The auditors

From: The Payroll Manager

Subject: Outline of various procedures for calculation of employee compensations.

The payroll department is responsible for preparation and payment of compensation to the employees. It is important follow the standard guidelines and procedures to correctly prepare the compensation due to the employees on regular basis. The following standard procedures are followed by the payroll department to prepare the monthly compensation dues to the employees:

1. Firstly a list of employees are prepared. The list includes both permanent and temporary employees. Every month at the beginning the list is updated to include the new recruitments and exclude the employees who have left, retired or sacked.
2. The rate applicable to each employees is determined on the basis of their positions and work hours during a month.
3. The hours worked by each employees during a period is double checked with employee attendance registers as well as information in the computer logs.     
4. The monthly gross salary and wages of the employees are determined on the basis of applicable rates as differ for temporary and permanent employees.
5. The different types of deductions as per the provisions are deducted from the gross payment to calculate the net amount payable to the employees for the month.
6. The payroll once complete is sent to the payroll manager. The payroll manager checks the final payroll and signs it if everything is correct.
7. The payments are released to the respective bank accounts of the employees on the 2^nd day of next month following the month for which the payment is made.

Dated: 02^nd September, 2018

Place: