Chapter 15: Hr And Payroll Cycle

Front 1

human resource management/payroll cycle

Back 1

a recurring set of business activities and related data processing operations associated with effectively managing the employee workforce

Front 2

6 tasks in hr/payroll cycle

Back 2

1. Recruiting and hiring new employees
2. training
3. job assignment
4. Compensating
5. Performance Evaluation
6. Discharge of employee

Front 3

Who manages HR?

Back 3

director of human resources

Front 4

WHo manages payroll?

Back 4

Controller

Front 5

knowledge management systems

Back 5

not only serve as a directory for identifying the areas of expertise possessed by individual employees, but also capture and store that knowledge so that is can be shared and used by others

Front 6

7 steps in the payroll cycle

Back 6

1. Update the payroll master file of any changes that have been made (new employees, terminations, changes in discretionary withholdings, etc.)
2. Update tax rates and deductions when information received from government
3. Validate time and attendance data for each employee
4. Preparing Payroll
5. Disbursing Payroll
6. Calculate Employer Paid Benefits and Taxes
7. Disburse Payroll Taxes and other Miscellaneous deductions

Front 7

step one: update payroll master database

Back 7

reflects various types of internally initiated changes: new hires, termination, changes in pay rates, or changes in discretionary withholdings

Front 8

payroll check

Back 8

a check sent to the bank to transfer funds from the company's regular accounts to its payroll account

Front 9

threats and controls for updating payroll master database

Back 9

threats:
1. unauthorized changes to payroll master data
2. inaccurate updating of payroll master data

controls:
1. proper segregation of duties
2. control access to payroll system

Front 10

Control Procedures for Unauthorized changes to payroll master file

Back 10

segregation of duties: HRM, payroll calculation, and paycheck distribution should all be separated; access controls; audit and review of all changes to the payroll master file

Front 11

Threats during payroll processing

Back 11

3. Unauthorized changes to payroll master file
4. Innaccurate time data
5. inaccurate processing of payroll
6. theft or fraudulent distribution of paychecks

Front 12

time card

Back 12

a document that records an employees arrival and departure on each day worked and it also includes the total hours worked

Front 13

time sheets

Back 13

professional in services track the time they spend performing various tasks and for which clients

Front 14

threats and controls in validating time and attendance data

Back 14

threat:
1. in accurate time and attendance data

control:
1. source data automation
2. segregation of duties

Front 15

two broad categories for payroll deducation

Back 15

1. payroll tax withholdings
2. voluntary deductions

Front 16

payroll tax withholdings

Back 16

federal, state and local income taxes, and social security taxes

Front 17

voluntary deductions

Back 17

contributions to a pension plan, premiums for group life, health, and disability insurance; union dues and contribution to various charities

Front 18

payroll register

Back 18

a report that is printed that contains each employees gross pay, deductions, and net pay for the current period and year to date totals for each category as well. serves as the supporting documentation to authorize transferring funds to the organization;s payroll checking account

Front 19

deduction register

Back 19

lists the miscellaneous voluntary deductions for each employee

Front 20

earnings statement

Back 20

included with an employees check. includes their gross pay, deductions, net pay for the current period as well as year to date totals

Front 21

cumulative earnings register

Back 21

cumulative year to date gross pay, net pay, and deductions for each employee

Front 22

data processing integrity conrol that can mitigate the threat of payroll errors (3)

Back 22

1. batch total
2. cross-footing the payroll register: the total of the net pay column should equal the total of gross pay less total deduction
3. a payroll clearing account: a general ledger account that is use in a two-step process to check the accuracy and completeness of recording payroll costs

Front 23

workforce invenotry

Back 23

list of employees by department

Front 24

position control report

Back 24

list of each authorized position, job qualifications, budgeted salary, and position status

Front 25

skills inventory report

Back 25

list of current employees and current skills

Front 26

flexible benefit plans

Back 26

each employee chooses some minimum coverage in medical insurance, retirement plans, and charitable contributions

Front 27

payroll service bureau

Back 27

maintains the master payroll file for the company and performs all of the payroll functions during the payroll cycle

Front 28

Professional Employer Organization

Back 28

in addition to payroll also performs all payroll functions plus provides services like benefit design and administration

Front 29

benefits of a payroll service bureau or a PEO

Back 29

reduced costs on payroll processing, wider range of benefits, freeing up of computer resources,

Front 30

Threats associated with employment Practices

Back 30

1. Hiring unqualified or larcenous employees
2. Violation of Employment Law

Front 31

Control Procedures for hiring unqualified or larcenous employees

Back 31

sound hiring procedures, requiring verification of applicants skills, past work references, employment history

Front 32

Control Procedures for Viloation of Employment Law

Back 32

thorough documentation of hiring and discharge procedures; training employees on current developments on employment law