Kế toán, kiểm toán - The payroll cycle

Learning objectives To learn about the human resource management (HRM) business activities and the payroll cycle business activities. To learn to flow chart HRM business activities and payroll cycle business activities. To understand the processing of HRM and payroll cycle transactions using computers. To know the control practices and procedures in HRM and the payroll cycle.

ppt19 trang | Chia sẻ: thuychi11 | Ngày: 31/01/2020 | Lượt xem: 63 | Lượt tải: 0download
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The payroll cycleLearning objectivesTo learn about the human resource management (HRM) business activities and the payroll cycle business activities.To learn to flow chart HRM business activities and payroll cycle business activities.To understand the processing of HRM and payroll cycle transactions using computers.To know the control practices and procedures in HRM and the payroll cycle.key termsannual leave awards clock cardemployee earnings recordhuman resource managementleave loadinglong service leavepayroll registerpayroll taxrate of pay sick leavetime sheetHuman resource managementIs responsible for hiring personnelAdvertises and assists in the selection processFacilitates location of peopleIs involved in personnel development and performanceEmployee discipline and terminationsHRM objectivesMotivation to maintain profitability and flexibility for long-term business survival by achieving:organisational productivityincreased quality of workimproved quality of working lifestatutory and legal complianceHRM activitiesDetermine rates of payMaintain employee detailsDetermine employee authorised deductionsDevelop and enforce appropriate human resource policiesProvide advice and information on HR issuesRates of payThe reward for labour may be based on:Supply and demand (high-income earners)Award ratesminimum wage rates and conditions set out in a legal documentIndependent negotiations for employees not covered by awardsMaintenance of employee detailsPermanent information kept on a record card:permanent records include full name, date of birth ,award, position etc.Payroll register and earnings records:also details of wages paid to date in current payroll periodEmployee authorised deductionsEmployees may request a portion of their remuneration be periodically remitted to an organisation or agency on their behalfExamples:private medical fund paymentsmortgage payment rentunion fees etc.Payroll cycle business activitiesGathering time and attendance dataCalculation of gross amount of wages payableTax computationPreparation of payroll recordsDisbursement of payrollDisbursement of PAYG, superannuation and deductionsIssue payment summaries and pay advicePay other payroll related expensesThe gathering of time and attendance dataMethods commonly used:Clock cardsTime sheetsTimebooksThe calculation of the gross amount payableGross pay consists of:pay for normal hours workedpay for overtime workedcommissionsincentive payother allowancesTax computationEmployer must register with ATO as a PAYG withholding entityMust withhold appropriate amount of tax from each employee’s payPAYG withheld must be paid at stipulated time to the ATODisbursement of payrollPayment usually from payroll bank account by:cashchequeelectronic bank transfersTaxes, superannuation and other deductions must be forwarded by stipulated dates to appropriate agencyPayment summariesPayment summaries (formerly group certificates)Must be completed for each employeeMust be issued to employee by 14th day after financial year endMust be issued 14 days after termination if requested by employeeOther payroll related expensesPayroll taxSuperannuation Guarantee SchemeFringe benefits taxPayroll processing flow chartInternal control procedures for the payroll cycleOnly hire appropriately authorised personsPay rates must be authorised by appropriate personTime records maintainedSegregation of duties practicedHRD notified of terminations so names are removed immediatelyEmployee to sign timecard and receipt for cash wagesPay distributed by responsible person not in payroll departmentSafekeeping of unclaimed wages Payroll registers serially numberedCheque signatories to check payroll register before authorising paymentComputer application systems for the payroll cycleSaves clerical labourRecords the information in the same categories as a manual systemQuick production of the documentation requiredReduces clerical handling errorsEasily generates detailed reports for management usePrints pay advice and payment summariesUpdates employee recordsOvercoming payroll irregularitiesImproper recruitment proceduresNoncompliance with employment lawsUnauthorised changes processedIncorrect data is input Inaccurate calculations