Hr/payroll

Front 1

HR-Payroll Cycle-Hire to Retire

Back 1

The end-to-end processes necessary to obtain labor services in exchange for cash
-Give cash, get labor services
1. Hire, terminate, promote employees
-Recruit, train, develop, retire, term employees
2. Receive service (time records)
3. Process payroll
4. Disburse payroll
5. Pay taxes and benefits

Front 2

General HR/Payroll Threats and Controls

Back 2

Front 3

Time and Attendance Threats and Controls

Back 3

Technology:
-Web-based
-Linked to job tracking (manufacturing)
-ID and access badges (in/out of work area)
-Electronic time clocks with log-in/biometric

Front 4

Process Payroll Threats and Controls

Back 4

1. Payroll department verifies and reconciles data
-HR updates are complete
-Time records are complete
-Tax data is current

2. Process Payroll
-Calculate gross pay, withholds, deductions
-Update payroll transaction files
-Allocate labor costs for job or project tracking

3. Payroll Clearing Account (zero-balance check)
-Debit Gross Pay; credit to cash and liabilities
-Distribute gross pay to expense accounts

Front 5

Disburse Payroll Threats and Controls

Back 5

1. Direct deposit goal is 100%
2. Separate payroll bank account
-Accounts payable reviews payroll register and prepares disbursement voucher
-Cashier prepares check or EFT to fund payroll account
3. Cashier processes and distributes paychecks
4. Cashier reviews direct deposit
5. Unclaimed paychecks sent to internal audit

Front 6

Disburse Taxes, Deductions and Benefits

Back 6

1. Calculate amounts withheld from employees
2. Calculate employer taxes
3. Calculate employer benefit payments
4. Payroll prepares payroll related payment requests
-HR benefits function handles third party invoices (for example: health insurance)
5. Accounts payable processes payment
6. Cashier processes payment