Writing payroll procedures is a difficult task, but an essential one. Seamless payroll procedures are essential for ensuring the same outcome is reached every time and, consequently, employees get paid accurately and on time.
At the present time, every department is expected to have written procedures for their tasks, and payroll is no exception. Here are a few tips on writing payroll procedures.
Document Timekeeping Methods used by Employees
According to the U.S. Department of Labor, an employer can use any timekeeping system to document and record time, from a timesheet to a computer time tracking system or even something else. Keep written procedures for how the employees submit the time worked for the payroll period and how often payroll checks are cut. For example, include within the written procedure whom do employees provide the timesheets to.
Create a Process Flow
While writing payroll procedures down, create a process flow for the entire payroll procedure so that no essential steps are missed. Write down the actions that need to be followed, in the order in which they need to happen.
Have Written Procedures for Calculating Employee Wages
If your organization uses a computer software program for processing payroll, write down the steps that need to be taken to enter the payroll information into the system.
Also, write down the procedures that need to be followed to make adjustments to the wages paid to employees, such as payroll adjustments that need to be made for unpaid vacation days by deducting the workday wage from the employee’s check.
Maintain Records of Employees’ Payroll Information
The IRS recommends maintaining employee payment records for atleast 3 years, including W-2s, timecards, tax statements and other payroll records. In your written payroll procedures, mention the storage facilities that contain these records, and how filing, handling and saving of existing and future records should take place (electronically or in hard copy form).
List out Payment Schedules and Procedures for Submitting Payroll Information to a Payroll Service Provider
Include a description of the frequency at which payroll checks are cut, such as weekly, biweekly or monthly. After entering payroll information into a computer software or time tracking system, provide written instructions on how to print checks or submit payroll information and records to the payroll service that prints the checks.
Conduct an Internal Audit
After the procedure is written down, test it out to see if any important steps were missed. Write out the final steps and use feedback to refine and adjust payroll procedures. Conduct an internal audit, and identify issues through a comprehensive workflow analysis.
Writing payroll procedures can be a difficult task, but this webinar by expert speaker, Vicki M. Lambert, CPP will reveal the “tricks to the trade” of writing procedures. Vicki will discuss how breaking up the task into 30 minute increments helps in writing fully documented procedures in hours instead of days and weeks. She will discuss how to work around payroll deadlines and staffing shortages. In addition to that, the information presented in human resource training webinar will help set you on your way to finally accomplishing that item on your to-do list that has lingered for so long—writing the procedures for your payroll department.