PAYROLL AND PERSONNEL CYCLE CHART
Journals needed for this cycle is the payroll journal and the general journal. In this cycle, transactions such as payroll taxes are checked to make sure they are deducted and remitted to the appropriate agency, and that payroll is accrued.
The payroll and personnel cycle begins with the hiring of personnel and ends with payment to the employees for the services performed and to the government and other institutions for the withheld and accrued payroll taxes and benefits
Step 1 - An employee is hired;Updating the payroll master file, personnel records are accumulated.
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Skill qualifications for each open position should be stated explicitly in the position control report. It is especially important to verify a job application’s skills and references, including college degrees earned, because research that approximately 30% of resumes contain false information. Background checks should also be conducted.
The new employee must be in three month probation period before held as permenant worker in the company. New employee start from the day the employee been hired in the company, the salary has been count. During the probation period, even though the employee is dismissed or not turn up at work (failed to complete the trial period - 3 months), they can still claim their wages calculated for work there. The individual must go to the company to claim the payment. For the permenant worker, the working been count using the thumb-print also but for the practical student, they use the punch-card and they have to see the manager to get the approval from the manager for the timing of the punch-card.
Step 3 - Labour hours are entered into the payroll journal and pay is calculated.
Labour hours are entered into the payroll journal and pay is calculated. This information is then used to update the payroll master file. Periodically, a summary payroll report is prepared.
1st. The payroll transaction file is sorted by employee number
2nd. The sorted time-data file is then used to prepare employee salary pay.
3rd. Next, all payroll deductions are summed and the total is subtracted from gross pay to obtain net pay. Employers often contribute some or all of the amounts to pay for their employee’s health, disability and life insurance. Many employers also offer their employees flexible benefit plans, under which the employee receives some minimum coverage in medical insurance and pension contributions.
4th. Once net pay is obtained, the year-to-date fields for gross pay, deductions and net pay in the payroll master file are updated.
5th. Finally, the payroll register and employee payment slip are printed.
Step 4 – The employee is paid by bank payroll and directed to the employee account.
The following procedures are followed:
1) Once the salaries have...