Name: Darrel P.

Sapinoso
Course/Block: BSA-2A
Activity 8.1

1. Define human resources management/payroll cycle.

The Human Resources Management / Payroll Cycle encompasses all transactions

involving the hiring, training, compensating, evaluating, promoting and termination of
employees. It is a recurring set of business activities and related data processing
operations associated with effectively managing the employee workforce.

2. What are the basic business activities and related information processing operations
performed in the human resources management/payroll cycle?

The payroll process consists of seven basic activities:

 Update payroll master database to reflect various types of internally initiated
changes like new hires, terminations, changes in pay rates, or changes in
discretionary withholdings.
 Update information about tax rates and other payroll deductions when it
receives notification of changes from various government units and insurance
companies
 Validate each employee’s time and attendance data,
 Update payroll, which involves sorting the payroll transaction file and
deductions
 Disburse Payroll which involves paying employees in cash, cheque or direct
deposit
 Calculate employer-paid benefits and taxes
 Disburse payroll taxes and miscellaneous deductions.
3. What are the major threats in the human resources management/payroll cycle?
4. Enumerate the various control procedures for dealing with those threats.

UPDATING PAYROLL MASTER DATA

 Unauthorized changes to payroll master data - Segregation of duties: HRM
department will update the master data and payroll department will issue the
paychecks.
 Inaccurate updating of payroll maser data - Data processing integrity control and
do regular review of all changes to master payroll data.
 Inaccurate time and attendance data - Source data automation for data capture
Biometric authentication.
 Errors when processing the payroll - Supervisory review of payroll registers and
other reports.
 Theft or fraudulent distribution of paychecks - Restriction of physical access to
blank payroll checks and the check signature machine.
 Failure to make required payments - Configuration of system to make required
payments using current instructions from IRS.
5. What are the key decisions that must be made in the human resources
management/payroll cycle and the information required to make those decisions?

 How many employees does the organization need to accomplish its strategic
plans?
 Which skills are short supply and over supply?
 Which of the employees possesses specific skills?
 Are there problems with the turnover, tardiness and absenteeism?
 Is the overall performance declining or improving?