Procedure on Processing Payroll Essay

335 Words2 Pages
Procedure on Processing Payroll: 1. Data Collection. Use the existing data collection for processing payroll. Process the payroll ahead of time. For example, calculate the wages two to three days before the actual pay day. This allows you sufficient time to process the payroll and correct detected errors. 2. Payroll Changes & Timesheet Delivery. If applicable, make changes to the employee payroll record such as file changes, new employee forms or new hired employee, and timesheets. File changes include: address changes, payroll deduction changes, income tax form changes and voluntary deduction changes. 3. Timesheets Review and Signature Approval. Review the changes that made for accuracy. If there are any discrepancies occur, make sure to solve it immediately before proceeding to processing. 4. Payroll Processing. Compute the hours that need to be paid from the timesheets into the system. Pay other types of income such as bonuses, allowances, and incentive-based payments. Perform any deductions made and adjustments. Considering the pay rates (regular, overtime, and penalty rates). 5. Payroll Generation. Print payroll reports that allow you to check if the time and all necessary edits made were enter correctly. Make adjustments, if necessary. 6. Payroll Release. Print paychecks. Produce the direct deposit file and forward to the bank. Contact the bank to make sure that they received it. Print payroll and pay slips to distribute to the employees. 7. Recordkeeping. Print payroll registers and make sure that it shows the employee gross-to-net wages for current payroll. File it to a secure environment or if you are using a computerized system ensures that it has a password and only authorized personnel can access on it. These records must be kept for seven years. 8. Payroll Distribution. Print and distribute reports needed such as

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