SYSTEM PROCEDURES Effective Date:

Document No.: SP-Payroll

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TITLE PAYROLL

To ensure that the Nickelbase, Inc. (NB) Payroll Process is accurately, timely, effective and on
OBJECTIVE
time pay.

Only valid employees are paid in accordance with wage contracts and other established policies
SCOPE and that payroll is calculated and recorded accurately and completely for services actually
performed and approved, the bi-monthly period 1 st to 15th and 16th-30th-31st.

Responsibility Activities Interfaces

Employee Personal Data folder
TIME KEEPING
checklistPROCESS FLOW
completeness
Forms: Approved PRF, RPAF and
Human Resource Contract Agreement
Note 1 Forms: TT copies for TX operators
New Employee Register & DT drivers accomplishment, EUR,
Biometric Fingerprint Assigned ID DTR’s/OT/leave with pay
Number

Site Admin Head

Note 2 Employee Bio-metric Register on
Automated Payroll System
DTR In-Out
Employee Biometric Fingerprint

Note 3 Time Sheet. Employees Time In

Employee
and Out
E

Retrieve Personnel Authorized to Retrieve

Admin Head/ Note 4 Information - Admin Head/HR
Information
HR/ Payroll Master Payroll Master

Note 5Cal Payroll Calculation Control

Admin Head/
HR/ Payroll Master Record Transaction
Cal

HR payroll Master Payroll period: 1st day to 15th day

Time Record Transaction Note 6
and 16th to 30th -31st day
Keeping Payroll peri
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Responsibility Activities Interfaces

PAYROLL SYSTEM PROCESS FLOW

day
Check Payroll and 16th to 30th -31st day
HR/Payroll Master Note 7
Factual Payroll

Automatically get employees DTR and Checked Validity,

HR/ Payroll Master
List of active employees from Time Note 8 Updated: Employees Data Master
Keeping System File Template

Admin Head/ HR- Check Hours worked, Basic Salary,

Review computations; OT, LOA
COLA, OT, LOA paid, Deductions,
Payroll Master ipdates
Noteu9 Logsheet updates
GOCC & etc.

Check by Correct or Modify All

Admin Wrong Entries
Head/HR, is NO
Payroll OK?

YES

Record Transactions

Payroll System Data Base

Review Completeness General

HR/ Payroll Master Extract Payroll to Excel Note 10
Payroll prior to generate

B
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Responsibility Activities Interfaces

Check General Payroll –Sheet 1

(supporting docs. -sheets 2 to 24
Generate General Payroll with
HR/ Payroll Master Note 11
complete supporting documents
(Sheet 1 to 24)
Check/verify payroll summary
ATM PAID Template Security Bank

HR/ Payroll Master

Note 12 ATM PAID Template

Prepared RAD/Review &

Approved F-ACT-003: Request for Advance
Admin Head/
Note 13 Deposit
Accounting Incharge
Email Payroll to Head Office for
Approved TF
Admin Head/ Note 14 F-ACT-004: Transfer of Funds
Accounting Incharge

HO Random Check &

Processing Voucher RAD refer SP-ACT-07
HO HRD Incharge

HO Release TF Deposit to
Accounting Officer/ HO Surigao CIB BPI
Approved TF Top Management
Manager Issued Check for TF

Accounting Officer/ Ho
Manager Site Prepare CV to withdraw Site Withdrawal Payroll
CASH Paid Payroll F-ACT-Voucher
Note 15

Disbursing Officer/
Release Payroll to Employees
Accounting Officer
PAYSLIP
Note 16 Release Payroll to Employees

Accounting Officer/
Admin Head Unclaimed Salary Site COH to Note 17 Unclaimed Employees Salary
NB Surigao BPI and Carrascal
RCBC

NOTE 1:
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1. All employees name reflected in the payroll has a folder completeness relevant documents checklist with controlled
forms like: Approved PRF, RPAF, Contract Agreement and other related forms mentioned in the “Checklist”:
 Hired employee pertinent documents filed in a folder with Checklist;
 PRF (F-HRD-001) the need of hiring such designated position;
 RPAF (F-HRD-014) the salary rate, allowances, GOCC deductions, and the date work effectivity;
 Contract Agreement signed approved prior to start of work and notarized.
2. Checked/reconciled the data generated from system versus the Trip Tickets of TX operator/DT driver daily
accomplishment summary, and Checked EUR Rentals.
3. Check Overtime “OT” form completeness. Approved OT initiated with department Supervisor/Head and approve by
Project Manager.
4. Check Overtime “LOA” Leave of Absence form completeness. Approved LOA with pay recommended approved signed
by department Head and Approved by Project Manager.
5. Checked/reconciled the data generated from system versus the Trip Tickets of TX operator/DT drivers daily
accomplishment summary, and Checked EUR Rentals

NOTE 2: Employee Biometric Register on Automated Payroll System

1. Payroll System Automated Register on Biometric by HR Personnel Incharge, assisted by Admin Head.
2. Ascertain Completeness of new hired employee, review folder checklist prior registered on the Automated Bio-metric.

NOTE 3: Time Sheet Employee “Time In and Out”

1. All active employees of NB will have to use the biometric for time In and Out.
2. The Head level employees are to use biometrics, and are entitled to time in and out free from office hours as long one
meets its target responsibilities.
3. Project level and above are exempted from using biometrics but are highly invited to use it.
4. Electronic Time tracking - a thumb stamp can be used to prompt a machine to electronically record the time for the
employee. No one has to manually enter these times as they are recorded at the time of the employee's clock punch.
5. The purpose is to record the employee's time accurately so that they are paid for the correct number of hour
works.

NOTE 4: Personnel Authorized to Retrieve Information - Admin Head/HR Personnel Incharge

1. Admin Head/ HR Personnel Incharge - All changes made to payroll record must be reviewed, strengthening control for
sufficient segregation of duties.
2. To verify whether payroll payments are being calculated correctly, employees being paid are still working for the
company, time records are being accumulated properly, and so forth.

NOTE 5: Payroll Calculation Controls. The following list of possible controls address such issues as missing timesheets,
incorrect time worked, and incorrect pay calculations. They are:
1. Automated timekeeping systems. The clocks have a number of built-in controls, such as only allowing employees to
clock in or out for their designated shifts, not allowing overtime without accompanied approved OT document, and (for
biometric clocks) eliminating the risk of buddy punching, you should send any exception reports generated by these
clocks to supervisors for review.
2. Calculation verification. NB are manually calculating payroll (by payroll master), then have a second person to verify
all calculations, including hours worked, pay rates used, overtime, pay leave of absence, and others GOCC deductions. A
second person (Admin Head) is more likely to conduct a careful examination than the person who originated the
calculations the payroll master.
3. Hours worked verification. Always have a supervisor approve hours worked by employees, to prevent employees from
charging more time than they actually worked.
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4. Match payroll register to supporting documents. The General Payroll Register (sheet-1 with supporting documents -
sheet 2 to 24) shows gross wages, deductions, net pay and so forth, so is a good summary document from which to
trace back to the supporting documents for verification purposes.
5. Match time In & Out employee list. There is a considerable risk that an employee will not turn in a timesheet a timely
manner, and so will not be paid. To avoid this problem, print a list of active employees at the beginning of payroll
processing, and check off the names on the list when checked their timesheets.
6. Overtime worked verification. Even if you do not require supervisors to approve the hours worked by employees, at
least have supervisors approve the overtime hours worked as stated in the OT documents. There is a pay premium
associated with these hours, so the cost to the company is higher, as is the temptation for employees to claim them.

NOTE 6: Time Record Transaction Keeping

1. Payroll period: 1st day to 15th and 16th to 30th -31st day
2. Payroll period 1-15th deduction for SSS/HDMF/PHIC and SSS/HDMF loans
3. Payroll period 16-30th/30th/31st deduction for BIR

NOTE 7: Payroll 1st – 15th and 16th to 30th -31st day; Factual Payroll

1. Employees were paid in accordance with payroll policies and procedures

NOTE 8: Checked Validity, Updates Employees Data Master file

1. Traced payroll information to source documents RPAF (F-HRD-012) including pay rate approvals and benefits
2. Updated: Employees Data Master File template

NOTE 9: Review computations and records updates

1. Checked/reconciled the data generated from Production System versus the Trip Tickets of TX operator/DT drivers daily
accomplishment summary, and Checked EUR Rentals,
2. Check Overtime “OT” form completeness. Approved OT initiated with department Supervisor/Head and Approve by
Project Manager; and daily OT Logsheet updates,
3. Check Overtime “LOA” Leave of Absence form completeness. Approved LOA with pay recommended approval signed by
department Head and Approved by Project Manager; and calendar period Logsheet updates.

NOTE 10: Review Completeness General Payroll (Sheet 1)

1. Checked bi-monthly corresponding deductions SSS/HDMF/PHIC/ and SSS/HDMF Loans – period 1-15 th and for BIR
withheld tax every 16-30th payroll period. Reconciliation performed thereon NOTE 5 – 9 and refer on General Payroll
Template Sheet 18-24,
2. Conduct a thorough checking of the details of data generated from NB Payroll Biometric, especially from Operation,
and Maintenance employees for the period in full operations overtime persist
3. Admin Head/ Payroll Master Check/Verify data input completeness before generate the output
4. Admin Head to submit the completeness Data File from Payroll Program to Surigao Central Office/ or HO Office either
thru DTS flash drive or thru online transmittal for updated original copies.

NOTE 11: Generate General Payroll with Supporting Documents (Sheet 2-24)

Sheet 1- Employees General Payroll,

Sheet 2- Payroll Summary -signed by Employees,
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Sheet 3- Pay Slip- Employee copy,

Sheet 4- ATM Paid Summary List,
Sheet 5- CASH Paid List,
Sheet 6- RAPS Entries
Sheet 7- DTR Summary – From Bio-metric Timekeeping,
Sheet 8- DTR Log “In & Out” – From Bio-metric,
Sheet9- List Employee Meal Allowance,
Sheet 10- Overtime “OT” Log-sheets,
Sheet 11- Leave “LOA” Log-sheets,
Sheet 12- Adjustments Entries
Sheet 13- DT Hauling Accomplishment – from Computer Data Program with control TT forms
Sheet 14- TX Hauling & Loading Accomplishment from Computer Data Program with control forms,
Sheet 15- List of DT Hauling per Drivers Name Accomplishment,
Sheet 16- List of TX Loading & Hauling per Operators Name Accomplishment,
Sheet 17- TX & DT EUR Rental Activities
Sheet 18- BIR 1601C Withholding
Sheet 19- SSS Contribution
Sheet 20- HDMF
Sheet 21- Philhealth
Sheet 22- SSS Loan
Sheet 23- HDMF Loan
Sheet 24- Calamity Loan

NOTE 12: ATM PAID Template

1. Site Admin Head/Payroll Master to Coordinate HO-HRD Incharge

NOTE 13: RAD refer SP-ACT-06

1. Admin Head/Accounting Incharge prepared Payroll RAD, BIR & SSS etc.
2. 3rd day after cut-off payroll, Admin Head email final soft copy to Home Office HRD Incharge
3. Random checked by HO HRD Incharge

NOTE 14: RAD refer SP-ACT-07

1. HO Treasury Officer generate voucher refer F-ACT-002 and Check voucher F-ACT-012 and approved by Top
Management
2. 4th day from cut-off payroll amount must be respectively deposited to NB branch Bank Accounts

NOTE 15: Site Withdrawal Payroll

1. Notify site admin head of the readiness of payroll amount available for pick-up for withdrawal at the bank
2. For Withdrawal, site to prepare Voucher F-ACT-002 Voucher per Site payroll, duly signed reviewed by and approved by
3. Safety First – in handling Cash Payroll from drawing bank to site

NOTE 16: Release Payroll to Employees

1. Disbursing Officer assisted with two designated staff from Accounting Section to assist stuffing cash envelop with PAY
SLIP, be vigilant in reconciling each amount reflected in the payroll summary against the verified pay slips
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2. Before releasing the payroll to employees see to it that all pay slips stuffed to the envelop with ZERO amount left
means is everything check and balance
3. 5th day Release of Payroll to Employees
4. All errors have to be investigated. Justified Adjustment (Sheet 12- for approval PM)
5. Employees to acknowledge receipt to affix their signatures in the Pay-slip and Payroll Summary
6. Authorization letter is accepted in the condition that, the authorize person will bring his/her valid ID and bring/
showing the employee ID authorizing to get his/her salary, reflecting in the authorization letter the approved signature
by the Project Manager or Admin Head.

NOTE 17: Unclaimed Employee Salary

1. If any remaining cash for unclaimed employee’s salaries must be reflected in the Cash on Hand (COH) site, to wait for
five (5) working days; if still the employee can’t claimed his/her salary within five days the cash amount will be
deposited to Surigao BPI account applied to all sites except for CNC site to be deposited at RCBC Account located in
Carrascal, Surigao del Sur
2. The employee wants to claim his/her salary will show his company ID; the Surigao/Carrascal CIB Treasury In-charge will
prepare a Check Payee in the name of the employee accompanied with check voucher
3. Authorization letter is accepted (refer note 16 no. 6). The approved authorized name appeared in the Check Payee
4. If still not claimed after 30days the cash amount for employee’s salaries will be returned deposited to HO Account.

DOCUMENTED INFORMATION GENERATED:

1. Form: F-HRD-014 RPAF & F-HDR-018

2. F-ACT-002 Voucher
3. F-ACT-012 Check Voucher
4. F-ACT-003 RAD
5. F-ACT-004 Transfer of Fund

REFERENCES:

1. Trip Tickets Report summary for TXs Operator & DT drivers accomplishment, and EUR
2. “LOA” form - Leave with pay with Logsheet
3. “OT” form - Overtime with Logsheet
4. Deposit slip
5. Payroll Summary – signed
6. Pay Slip - signed

Prepared by: Reviewed by: Approved by:

Date: Date: Date: