The Process of Payroll
The process of payroll has been crucial to the modern day job department. Even though the payroll process is widely used, it can result in errors due to its detailed process flow incorporated. This procedure is usually applied because of its repetitive basis that is consistent. The actual process varies due to different steps being followed. Use of manual, outsourced or computerized payroll process results into different payroll process. The following are the steps dictating the payroll process. Updating employee master file by payroll clerk is an important process since it informs the employee about the changes employed in the payroll process. For instance exemptions imposed, and the pay rate changes should be communicated to the employee. This information will lead to master file update of employee’s changes. Setting pay period is also made. Also, the time dedicated to work and overtime hours are discussed. The next step is entering a number of manual paychecks. These are the paychecks that have been coming into the payroll system. These paychecks are usually the changes made in the previous periods.
Manually calculating termination pay of an employee who quits working is made. This calculation consists of the amount payable to the employee who quit working, their unspent vacation time and severance pay (Bhat: Fernadez: Kumar: Goel: 2015: 45). Altering deductions such as medical insurance and charitable contributions is updated to standardize deductions. Furthermore, all the pay calculations are clarified manually. Some tax withholdings are calculated through the use of tax table. The government usually provides this tax table. After completing analysis report and no instance of errors indicated, payments are then processed. Payroll Reports are then delivered to management to show completion of payment.
Backup data related to payment are kept. In outsourcing the process of payment, this procedure is completed by the supplier. In a manual system, payroll register is entered (Nathoo: 2015: 78). After all these processes, locking down payroll period is made in payroll module. This is the period payroll comes to an end so as to minimize unauthorized changes. Furthermore, this process is essentially moved forward to the next payroll period. Payroll taxes are deposited and verified by the state for transfer. To answer questions from employees after paying taxes, timecards are stored in a more accessible location.
If the time cards are complete one or two weeks without questions, transferring it to long-term storage is necessary. In case of problems being discovered by employees, a company should find out transaction errors and bring in new changes to control the damage. This may include the employing new control methods (Englebrecht: Henry: Iyer: 2015: 68)
Bhat, J. M., Fernandez, J., Kumar, M., & Goel, S. (2015). Business process outsourcing: learning from cases of a global offshore outsourcing provider. In Handbook on Business Process Management 2 (pp. 443-470). Springer Berlin Heidelberg.
Cohill, K., Dudley, D., Gregg, J., Millette, E., Zinnecker, A., & Havelka, D. (2015). USMCo Payroll System. Information Systems Education Journal, 13(2), …