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THE HUMAN RESOURCESMANAGEMENT/PAYROLL CYCLE

The human resources management(HRM)/payroll cycle is recurring setof business activities and relateddata processing operationsassociated with effectively managingthe employee work force.

Some of the more important activitiesinclude the following tasks :1.2.3.4.5.Recruitment and hiringTrainingAssigment of job responsibilitiesCompensating for services providedEvaluation of employeeperformance6. Discharge

Context Diagram of Payroll Portionof HRM/Payroll Cycle

PAYROLL CYCLE ACTIVITIES Update Payroll Master FileUpdate Tax Rates and DeductionsValidate Time and Attendance DataPrepare PayrollDisburse PayrollDisburse Payroll Taxes and MiscellaneousDeductions

PayrollCycleActivities

Update Payroll Master FileUpdating the payroll master file toreflect various types of payrollchanges : new hires, terminations,changes in pay rates, or changes indiscretionary withholdings.

Update Tax Rates andDeducationsUpdates information about tax rates andother withholdings.

Flowchart ofPayrollSystem –BatchProcessingat AOE

Validate Time and Attendance Data Pay Schemes : for those paid on an hourlybasis, mos companies use an employee timecard, which records the employee’s arrival anddeparture times for each work shift and totals thehours worked during a pay period. Procedure : The payroll departement isresponsible for validating employee timerecords. Opportunities for Using Information Technology :Payroll processing can be made more efficientby collecting employee time and attendancedata electronically.

Designing Effective Bonus PaySchemes1. Attainable goals2. Controllable goals3. Goals congruent with corporateobjectives4. Measurable goals5. Periodic review of goals

Prepare PayrollProcedures1.The payroll transaction file is sorted by employeenumber.2.The sorted time data file is then used to prepareemployee paychecks.3.All payroll deductions are summed and the totalis subtracted from gross pay to obtain net pay.Payroll deductions fall into two broad categories:payroll tax withholdings and voluntarydeductions.4.The payroll register and employee paychecksare printed.

Disburse PayrollProcedures Once paychecks have been prepared, thepayroll register is sent to the accountspayable departement for review andapprovall. The payroll register is returned to thepayroll departement, where it is filed bydate along with the time cards and jobtime tickets.

Disburse Payroll Taxes andMiscellaneous DeductionsThe final activity in the payroll processinvolves paying the payroll tax liabilitiesand the other voluntary deductions of eachemployee.

Control Objectives, Threats, andProcedure1.2.3.4.5.6.7.All payroll transactions are properly authorized.All recorded payroll transactions are valid.All valid : authorized payroll transactions are recorded.All payroll transactions are accurately recorded.Applicable government regulations regarding.remittance of taxes and filling of payroll and HRMreports are met.Assets (both cash and data) are safeguarded from lossor theft.HRM/Payroll cycle activities are performed efficientlyand effectively.

The payroll system must be designedto collect and integrate cost data withother types of information in order toenable management to make thefollowing kinds of decisions: Future work force staffing needsEmployee performanceEmployee moralePayroll processing efficiency andeffectiveness

SELESAI

Flowchart of Payroll . The final activity in the payroll process involves paying the payroll tax liabilities and the other voluntary deductions of each employee. Control Objectives, Threats, and Procedure 1. All payroll transactions are properly authorized. 2. All recorded payroll transactions are valid. 3. All valid : authorized payroll transactions are recorded. 4. All payroll transactions .