Payroll Controls

Expected payroll controls Are these in existence at Sheridan?

There is an existence of authorised changes with
All changes to the payroll are authorised: the starters and leavers. The payroll
administrator, whose duty is to input new
 Starters employees and remove an employee who leaves
 Leavers or retires from the payroll system, entered the
 Rate of pay changes starter, into the payroll system and remove the
 Rate of tax changes leaver, unto the system.

When rate of pay or tax changes it was recorded

in the minutes. The minutes indicate that the pay
raise has been authorised by the board.
Change tracking Copies of the minutes of rate changes to the
payroll were given to the Account manager to be
Copies are kept of changes to the payroll – such kept.
as rate changes

The account manager has run and reviewed the

Error-checking reports reports before she sign it as authorised.

Show items that fall outside of normal payroll

The payroll records and employee files are lock

Access restricted to payroll records
Appropriate measures taken to protect payroll
data and personal details with restricted access
to online and paper based records including
payslips.
up to prevent unauthorized access. The use of
strong password in protection of the records
stored online in important to prevent
unauthorized changes to records such as a pay
rate.

The account manager authorises changes made

Separation of duties to the payroll and check the monthly payroll run.

 One person prepares payroll and The payroll administrator processes the weekly
another authorises it pay run for staff in production and warehouse,
 Another person makes payments and the monthly payroll run for all other staff.

The finance director authorises the payment.

Automated timekeeping systems
Computerised time clock of calculating weekly
pay and overtime
In recording the employee’s time of work in a
day, pre-printed form of timesheets were
provided indicating the name, date and time he
started and finished work which the employee
will just fill in the details by writing it down.

At the end of the week, the employee himself

will calculate the total hours and minutes

Calculation verification
For any manual calculations to the payroll
Hours worked/overtime authorised for weekly
pay
Bank transfers to employees are authorised by
two senior members of staff
Payroll checking account – this should be a
separate account to minimise risk of fraud
worked for the week and write its total on the
given form using manual calculations.
The line manager has verified the manual
calculation of total hours of worked of his
subordinate, signed the document to authorise it
as accurate and sent it to the payroll
administrator for processing.
Overtime payment is agreed with the finance
director who authorises the payment.
The payrolls for bank transfers to employees
were authorised by the account manager and
finance director.
Doing so prevents someone from fraudulently
increasing the amount on an existing paycheck
or creating an entirely new one, since the funds
in the account will not be sufficient to pay for the
altered check.