Accounting Procedures: The Payroll Procedure
The payroll is associated with employ and the staff and this involve a complete flow of assigning error free payroll to the employees. The payroll procedure is a complex procedure and include following steps:-
Updating Master file of employee
Every employee has its own master file. Whenever there are some changes in the payroll procedure or change in the payroll the alterations are made in the employee master file.
Setting pay period of each employee
For each employee in the firm a particular pay period is designed and pay is given to employees at that particular period
Time Worked by each employee
The time worked by each employee is recorded that include the regular working hours and over times performed by that employee.
Manual pay checks entry
This step involves the entry of manual pay checks that are not recorded in the payroll software system of the firm
This involve the final calculation of the pay that include termination pay, deductions included in the pay, deductions of the taxes according to the government rules
This step involves issuing final payment to the employee if there is no error in the procedure
After issuing pays to the employees there are number of other steps that are conducted by the management such as reviewing reports, taking back up of data, locking down the period, depositing taxes to the government and associated procedures.