Payroll Report, Policies and procedures
Security and control Measures
Security and control measures of Payroll department and related areas are essentials and are very relevant in order to avoid and eliminate security breaches and loopholes in payroll processing.
Payroll procedures must be thoroughly enforced and documented to ensure the security of payroll process. Each payroll employee must be cleared of his or her individual responsibilities, from their delegated role, in the payroll procedures they perform, and in standard operating manual for the payroll department.
Payroll policies and procedures must be reviewed updated and documented at least annually.
Any payroll errors, discrepancies and grievances should have clear processes and be addressed by managers or supervisors, not with another payroll staff.
The physical security of payroll records, files, data and systems and payroll facilities access should be strictly controlled. Offices, mainframes and computers must be in securely locked area. Payroll staff must be working away from visitors and employer traffic where they’re not subject to external parties.
There are following control measures that can be adhered to for payroll:
Passwords and restricted access, which ensure that access to the payroll system is available only to the authorized people.
Supervision of timesheets.
Timesheets being checked prior to the processing.
Segregation of duties, which ensures that more than one staff member is involved, such as one to authorize another to process information and the other to check the records.
Employee signing for pay, which ensures that cheques or cash are only collected by the employee.
As well is assisting in the minimization of risk, control measures relating to the management of payroll ensure that:
Payroll data complies with legislation; complex of legislation governance the employment and remuneration of staff, for example, the workplace relations act 1996(CTH): a payroll manager must be aware of the legislated framework relevant to payroll and the organization.
Budget control s maintained.
All transactions are timely, and relevant reports are generated.
All payroll information is accurate.
Information is complete and reflects reality.
Source data documents are filed appropriately and retention requirements are met.
All payroll transactions are correctly coded and entered,
All payroll transactions are authorized and approved by the appropriate authority, for example, the payroll manager.
Information used to calculate payroll payment and deductions is up-to-date and correct,
Security procedures ensure the confidentiality and security of payroll information.
A range of information must be available for each employee as prescribed by the Fair Work Act 2009(Cth) and Fair Work Regulations 2009(Cth).
These documents include:
1. The general information records.
The employer’s name and Australian Business Number(ABN)
The employee’s name
The employee commenced date
The basis of the employees employment (full-time, part-time, temporary, casual, etc.).
2. Pay records
The rate of pay to the employee
The gross and net amount paid and any deductions.
The details of any incentive.
Based payment, bonus, loading, hourly rate, or other monetary allowance, etc.
3. Leave records
The balance of the employee’s entitlement to that leave etc.
4. Hours of work records
The number of overtime hours worked each day, always showing when the employee started and finished working overtime hours, etc.
5. Superannuation contribution records
The amount of the contribution that is made.
The period over which the contributions ere made.
The dates on which each contribution was made
The name of any fund to which the contribution was made, etc.
Under the Fair Work Act 2009 recordkeeping and payslip obligations are provided for in section 535 and 536. Fair Work inspectors may issue an employer with…