10 methods of internal control of salaries and wages
Before I explain some control items to you, it is necessary to familiarize yourself with the main components of the payroll system:
1- Recruitment department
The recruitment department is responsible for preparing and compiling employment guidelines and regulations that are in accordance with labor and social affairs laws, and other executive matters of this department are employee training, how to use leave, and determining job descriptions and transferring personnel to other departments. is
2- Personnel entry and exit registration circle
The entry and exit registration department controls the presence and absence controls by various methods, including manual and machine, and in fact, it implements the role of military interpreters.
3- Salary accounting department
The payroll accounting department is considered the most important part of the company. This department is responsible for preparing and adjusting the salary list and determining the payable amount, and in fact, the salary documents of each personnel are kept in this department.
Usually, in smaller companies, one person or an accountant performs all the affairs related to these 3 departments. But unfortunately, some companies do not have a regular system for calculating salaries and wages, nor do they follow the following control parameters well.
Many companies may realize the flaws in their payroll control system when it comes to audit guidelines. Today we will explain some practical techniques in this field. I hope it can be fruitful.
1. Any recruitment or use of human resources is done based on relevant regulations and special approvals.
2. Personnel files are properly organized and well protected.
3. There is a specific mechanism to control the entry and exit of employees.
4⃣ Permission for each of the following items is issued by independent persons from those responsible for regulating the salary system and its payment:
A- Changes of employees in the salary list
B- Determining salary rates and their changes
C- Deduction in excess of the legal deduction
5⃣ In cases where employees’ salaries and wages are paid based on the amount of production/sales:
A- The salary list is based on production/sales reports and is approved by a responsible authority.
b- The additional work of the employees has been approved by the documents and documents before it is done and the amount of overtime is approved by the responsible authority.
6. Sufficient controls are carried out to ensure the accuracy of payroll calculations.
7⃣ In case of salary payment through deposit to the bank accounts of check issuing employees, the list sent to the bank/cheques issued in terms of the employee’s name, account number and net amount to be paid will be compared by persons independent of the payroll list preparers.
8 ⃣ Necessary controls regarding the correct registration of all information related to the salary list are carried out in the offices.
9⃣ Obtaining an acceptable guarantee from the employees during the conclusion of the contract is mandatory, each employee according to his position and position should provide at least one reliable identification and promissory note to the collection in which he is supposed to be placed.
Trainees or hourly workers must have a specific and different contract from other employees.
This post is written by zahra9557