Reporting and Operations

Payroll Expenses

Size of Organization: 
  • The initial information for each employee and every change impacting payroll (terminations, overtime, compensation changes, employee deductions, etc.) will be in writing and appropriately approved.
  • Randomly audit the information in the human resources and payroll systems making sure they agree with written information.
  • Encourage the use of direct deposit by employees.  Employees without direct deposit should sign for their payroll checks.  The direct deposit register will be randomly audited, by non-payroll staff, to confirm that direct deposits are made according to the instructions provided by employees.
  • All payroll-related reports are reviewed by an employee not involved with submitting payroll.  This review includes resolving items appearing on error reports.
  • Integrate human resource, time keeping, and payroll systems whenever possible.  This reduction in manual entry decreases the likelihood of staff intentionally or unintentionally entering erroneous payroll information.
  • If the payroll system (ADP, PayAmerica, etc.) is not integrated with the general ledger reconcile the cumulative payroll system balances with the general ledger each month.