Call: +971 4 456 7488
Order Now
CoreBiz Software Developments
CoreBiz Web & Multimedia
CoreBiz Enterprise Solutions
CoreBiz Specialty Services
Articles of Interest
Articles on Payroll
Preventing and detecting Payroll fraud..
The Payroll Payoff...Edward Nagel
What internal controls are needed for payroll?
Payroll - Risks associated with payroll
read more:.
Articles on eLearning
10 Tips For Online Learning
Evaluating e Learning
The Magic of Learner Motivation
The Benefits and Drawbacks of e-Learning
Marketing e-Learning
Measuring the Financial Returns of e-Learning
read more:.
Articles on Security
10 Basic Online Security Rules
Make sure your PC is really secure from 'Net-based hacker attacks - without spending a dime.
read more:.
What internal controls are needed for payroll?

According to Price Waterhouse's booklet, Effective Internal Accounting Control for Nonprofit Organizations: A Guide for Directors and Management, the objective of internal controls for payroll are to ensure that payroll disbursements are made only upon proper authorization to bona fide employees, that payroll disbursements are properly recorded and that related legal requirements (such as payroll tax deposits) are complied with.

Each employee should have a payroll/personnel file, containing updated salary, benefits, employment status, and withholding information, as well as beginning date of employment and termination date, when applicable. A personnel manual should describe the organization's policies, established by the board, regarding vacations, holidays and sick leave. Records should be kept for each employee to ensure that these policies are being followed. Accountants recommend that the organization retain these records for six to seven years after the employee has been terminated (and possibly longer if that employee participates in a pension plan.)

The time sheet is the most common tool used to document employee hours (including overtime) and authorize payments to employees. Time sheets can be designed to incorporate information regarding vacation, sick leave, and holidays. Time sheets are usually submitted by the employee to his or her immediate supervisor for signature, and may also be reviewed periodically by senior management. Ideally, the person authorizing an employee's hours does not also prepare the paychecks.

Payroll checks should be written in keeping with the procedures for all other cash disbursements. Additional segregation of duties related to the payroll function include having someone other than the payroll check signer:

  • Hold unclaimed paychecks.
  • Review the payroll register and post payroll to the general ledger.
  • Many organizations choose to have a separate checking account for payroll that is used for issuing paychecks. A payroll register, listing who was paid, how much, and check number is maintained, either as a subsidiary journal if there is a separate payroll account, or as part of the cash disbursements journal when payroll is integrated with other cash disbursements in a manual system. Some organizations require that employees sign the employee register to acknowledge receipt of their paycheck.
Payroll Internal Controls Checklist

The following questions reflect common internal accounting controls related to payroll. You may wish to use this list to review your own internal accounting controls and determine which areas require further action.

  • Are detailed time sheets required to document employee hours, including overtime?
  • Are time sheets signed by the employees’ immediate supervisor authorizing payment for work?
  • Are employment records maintained for each employee that detail wage rates, benefits, and any changes in employment status?
  • Do written policies and procedures exist for accounting for vacations, holidays, sick leave, and other benefits?
  • Is a separate payroll bank account maintained?
[ Page top ]
1. Preventing and detecting Payroll fraud..
2. The Payroll Payoff...Edward Nagel
3. What internal controls are needed for payroll?
4. Keep ghosts off the payroll
5. Payroll - Risks associated with payroll
CoreBiz Business Solutions
CBizs HR Solution
CBizs Time Attendance and Payroll Solution
Payroll Processing Services
CBizs Employee Self Service Solution
CBizs E-Procurement Solution
CBizs Event or Exhibition Management Solution
CBizs Production Management Solution
Land Management System
Receive periodic updates and announcements on the latest happenings within CoreBiz Technology and the IT industry. BUSINESS PARTNER
Google  Web  

Services : Software Consultancy :- Technical Consulting - Software Solutions - Software Development
Web Design & E-Marketing :- Web Hosting & Support - Web Design & Development - Web Application Development - Content Management - Multimedia Services - E-Marketing Services - Search Engine Submission - Search Engine Optimisation (SEO) - Intranet Solutions - Enterprise Solutions :- Enterprise Resource Planning (ERP) - Supply Chain Management (SCM)
Supplier Relationship Mgmt. (SRM) - Customer Relationship Mgmt.(CRM) - Sales Force Automation - Marketing Automation - Business Intelligence Advanced Planning & Scheduling
Specialty Services :- Managed IT Services - Application management - Infrastructure Management - Application Integration(AI) - Technical Architecture - Network Solutions - Security Solutions - IS Security - Internet Security
Products : Payroll Software System - Workshop Software System - Accounting Software System - Retail Solution - HR Solution - Library Management System - E-Learning System - Car Rental System
Training - Partners : Partners Overview - Partners List - Join Partners Network
Contact : Contact Information - Request for Proposal - Careers - Contact Form

All rights reserved 2013-2014.  Updated 2013.
Corebiz Technology FZ LLC, Dubai, UAE
Sitemap - Legal Policy - Disclaimer

home sitemap contact facebook page Redefine web design Live healthy, Be confident True Opportunity DUBAI INTERNET CITY DUBAI MEDIA CITY KNOWLEDGE VILLAGE BUSINESS PARTNER