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HR / Payroll Cycle. ATG 383 - Spring 2002. Overview. Operation of Payroll System Risks and Controls for Payroll System Accounting for Human Resources. Simplified Payroll System. Payroll Inputs for Process 1.0. Employees Various agencies HRM
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HR / Payroll Cycle ATG 383 - Spring 2002
Overview • Operation of Payroll System • Risks and Controls for Payroll System • Accounting for Human Resources
Payroll Inputs for Process 1.0 • Employees • Various agencies • HRM • Why are some payroll related functions located in HRM department?
Payroll Inputs for Process 2.0 • Revenue Cycle • Various Departments or Employees • Who is responsible for reviewing and editing payroll input?
Payroll Outputs for Process 4.0 • Bank • Special Payroll Account • Employees • How to disburse funds? • G.L. System
Payroll Outputs for Process 5.0 • G.L. System • Various Agencies
Not shown on DFD – Still part of payroll process • Answer inquiries about payroll • Issue reports on payroll activities • Internal use: management and cost accounting • External use: employees and government • Independent reconciliation of payroll account.
Threats Primarily Addressed by HRM • Hiring unqualified employees • Violation of employment law • Inappropriate incentive compensation
Threats the Payroll System Can Address • Unauthorized changes to payroll master file • Inaccurate time data • What if employee X clocks in for employee Y?
Threats the Payroll System Can Address • Inaccurate payroll processing • Theft or fraudulent distribution of paychecks
Threats the Payroll System Can Address • Loss or unauthorized disclosure of data
Outsourcing Payroll Processing • Many companies use an outside service bureau for payroll • Benefits? • Risks?
Example of HRM SystemSource: http://www.harmony-solutions.com.au/overview2.htm
Core HRM System • Biographical data • Name, address, employee id. • Service history. • Competencies. • Establishment (Position) Data • Position title. • Requirements. • Position occupancy • History
Recruitment Module • Administer advertising of vacant positions • Generate advices to applicants • Archive unsuccessful applicant records • Administer EEO incident claims
Competency Management • Assemble and analyze corporate training needs • Identify corporate and individuals' skills deficits • Match competencies to position, project, and workforce requirements • Identify training strategies which impact on employee performance
Performance Appraisal • Administer employee performance plans and appraisals • Ensure that performance appraisals and plans are conducted on schedule • Record performance assessments and decisions concerning employee performance • Record employee comments concerning their performance assessments