Question

a) Some companies believe in the integration of HRM and Payroll systems. However, many firms do not agree with this integration. These companies maintain separate HRM information systems and Payroll. Required: Discuss both arguments. For this discussion, think in terms of

(1) difference in employee background, and

(2) functions performed by the HRM and payroll departments. [7 marks]

upto 200 words

b) Mr Peter is the treasurer of a small charity and you asked him to explain the business activities and data processing operations involved in the payroll cycle of the charity. During this discussion, Peter explained that the charity is not using a separate cheque account to manage their Payroll due to the extra monthly services fee. Peter further explained that the benefits of a separate cheque account are not worth the additional fee. Required: As a student of accounting information systems, how would you respond to Peter? upto 150 words

Answer 1

Answer:

a. HRM and Payroll systems differ in the information included in the employee background. An HRM system focuses more on the easy management of human resources and their respective data. The HRM system should rightfully be managed by the HR Department. On the other hand, the Payroll system focuses on the management of employee salaries and wages. This includes verifying number of hours worked, computation of wages and withholding of taxes. Some information in the Payroll system such as the rate of each employee's wage is confidential and must be accessed only by a limited number of people in the Accounting Department.

.

b. Considering that the charity in which Mr. Peter works for is a small one, it is understandable why they choose to not use a separate check account for their payroll because of its additional costs. However as a student of accounting information systems, I will explain the benefits of having a separate account such as proper segregation and management of expenses. I will also tell him of a possibility when their charity will expand in the future and how complicated it will be to keep track of everything without having separate accounts.