Free Essay

Payroll Proposal

In: Business and Management

Submitted By inelson
Words 714
Pages 3
Three Rivers Consulting Services November 13, 2012John Doe, President Fargo Manufacturing2101 E Coliseum Blvd Fort Wayne, IN 46805 | AddressAddressPhoneEmail |
Mr. John Doe,
At Three Rivers Consulting Services, helping our clients improve their businesses is our highest priority. It is therefore our pleasure to submit to you our recommendations for improving your time-keeping and payroll system. We have separated our proposals into three sections: data collection/cost allocation and related controls, processing procedures and related controls, and disbursements. It is the opinion of our auditor team that if implemented these recommendations will provide the most cost savings and increased efficiency for your business. We conclude our report by offering suggestions for implementation of our recommendations.
Data Collection/Cost Allocation & Related Controls
Although not isolated to your payroll cycle, your employee’s time data is collected only at the departmental level. By collecting employee time data for individual production centers, production runs, or specific activities, your accounting department will be better able to track your labor expenses to products. Labor is a significant expense for your company. By directing a greater amount of your hourly payroll into your more profitable lines and away from those that are less profitable, you can reap significant cost savings and add to your bottom line.
Processing Procedures & Related Controls
In your current system, a payroll register is prepared prior to supervisor approval of the time data. We suggest that the departmental supervisors review and approve employee time data and job-time tickets prior to sending it to the payroll department for processing the payroll register. Once the payroll register has been prepared, it should be sent back to each department for final reconciliation with supervisory records. This procedure will minimize any inaccuracies in time data.
Once the final payroll register is prepared, we recommend preparing four additional copies: one each for the accountant, accounts payable, the cost accounting department, and one for the cashier. As in your current system, the cost accounting department will use their copy to prepare a labor cost summary and the accountant will use a copy in order to update the general leger and prepare reports.
Accounts payable will review their copy for accuracy and will then prepare a voucher that is sent to the cashier in order to authorize the payment of wages. The cashier uses his or her copy of the payroll register to reconcile

with the amounts listed on accounts payable’s voucher package. If no inaccuracies are noted, checks are printed by payroll and signed by the cashier. Mr. John Doe | Page 2 | November 13, 2012 |
By separating the custody of cash from the authorization and recording functions, unintentional or intentional misappropriation of funds is minimized. Additionally, by adding several opportunities for review and approval, as well as narrowing and segregating areas of responsibility, employees will have fewer opportunities to make mistakes.
Disbursements
With the number of employees that your company employs, it will be more efficient, less costly, and more accurate to provide direct deposited paychecks via electronic funds transfer. This eliminates the threat of theft of blank payroll checks. EFT transactions should still be reviewed in order to prevent unintentional double payments and other inaccuracies.
Recommendations for Implementation
Although many companies are still using time cards and paper job-time tickets, there is a strong trend toward the use of electronic means of tracking these activities. The main advantage is increased accuracy by removing the need to manually input data into the system. The change-over will require retraining of affected employees and the installation of the needed hardware.
The training of employees involved in the preparation of payroll can be accomplished without outside help. The changes that we propose simply alter areas of responsibility. The new responsibility –holder can be trained by the employee that formerly was tasked with the respective area.
Direct deposit services can be set up through the bank where you keep your payroll and general checking accounts.
Summary
As we have demonstrated, improving the success of your data collection and payroll processing system involves small changes don’t require large initial outlays or extensive retraining of your workforce. We are grateful for your business and look forward to assisting you with the implementation of your changes.

Sincerely,

Jane Doe, CPA
Executive Director
Three Rivers Consulting Services…...

Similar Documents

Premium Essay

Payroll

...Name: Nicoleta Lupu ID: 3140928 Assignment # 1 Memorandum Burnco Mfg. Inc Date: October 8th, 2012 To: Jeff Martin Controller Cc: J.P. Marker CM1 Marker From: Nicoleta Lupu Payroll Administrator Subject: Termination of employment checklist Following our conversation from last week, I noticed that all employees who has been terminated have no termination of employment record. In this memo I am proposing a reorganization of all employee’s files by adding more information regarding their leave. The company has 128 employees and also have personnel form placement agencies. When I need to find details about employment/unemployment, i should be able to retrieve it with no delay and no time consuming. From my yesterday experience, we had to lay off two employees from the production department. I was unable to submit a brief report about the termination. They left the company without signing out and without giving back the tools that belongs to the company. My plan is to use a spreadsheet which can be used when employees are being fired, lay off, quit, parental leave, sick leave, etc. The following items should be checked off prior to an employee leave. Not all items will apply to all employees or all circumstances. Once the form is completed, it will be placed in the employees personal file and kept for two years: - Meet with the employee in a private, neutral location such as conference room or closed office to inform......

Words: 444 - Pages: 2

Premium Essay

The Business Research Process and Payroll

...The Business Research Process and Payroll The business research process is the generally outline systematic process by which a company gathers information to make an educated decision or take educated steps to maximize the company’s performance. Though they are truly just put in place to keep the general flow moving forward for business research, and some are omitted, performed more than once, and performed out of order, the basic process outline contains approximately eight steps: (1) Clarifying the Research Question, (2) Research Proposal, (3) Research Design Strategy, (4) Instrument Development and Pilot Testing, (5) Data Collection and Preparation, (6) Data Analysis and Interpretation, (7) Research Reporting, and (8) Management Decision (Cooper & Schindler, 2011, p. 11). CompuPay, Inc, a payroll outsource company, relies mostly on internal business research. Small Internal Research Groups CompuPay conducts much of its research using teams called Areas of Excellence Groups (AEG’s). Management has weekly (or more frequent if needed) conference calls in which they discuss issues in the company and industry. It is on these calls that the first step is completed: clarifying the research question. The dilemma is stated and the questions surrounding the dilemma are formed. They decide how to tackle the research end of the dilemma. Usually, they do so by creating an AEG. The AEG is made up of at least one person from each area of the company to act as a......

Words: 500 - Pages: 2

Free Essay

Payroll Processing

...+0000 From: "Karina Ramirez" Subject: Payroll Info Here is the information you requested on our payroll processing: 1. All hourly employees (clerical and warehouse personnel) are paid biweekly (every 10 workdays) based on hours recorded on time cards maintained by a time clock machine. The time cards are approved by the supervisors. The supervisors take the approved time cards to the payroll department. Salaried employees also are paid biweekly based on a salary schedule approved by the finance committee of the board of directors. 2. The personnel department must approve all new hires, terminations, and hourly rate changes. Forms for each of these actions also are approved by appropriate supervisors and are kept in the personnel office. The personnel clerks notify payroll of the changes by a “payroll change” document. 3. The payroll department maintains the individual employees’ payroll records and the forms signed by employees for all pay deductions. 4. Every two weeks, Martha, a clerk in the payroll department, prepares the payroll register (multicopy) from the time cards and the information of the individual payroll records. Martha uses a “write-it-once” system that also prepares a form indicating gross pay, each deduction, net pay, and year-to-date totals. Martha calls this form the “take-home sheet.” Willie, a second clerk, checks Martha’s work and recalculates the gross pay and all deductions. 5. Two copies of the payroll register and the take-home sheets......

Words: 486 - Pages: 2

Premium Essay

Payroll

...month. d) Out of station allowance: An allowance granted to an employee working in a transport system to meet his personal expenses in performance of his duty in the course of running of such transport from one place to another is exempt up to 70% of such allowance or Rs.6000 per month, whicher is less. III.FULLY EXEMPT ALLOWANCES (i) Foreign Allowance This allowance is usually paid by the government to its employees being indian citizen posted out of India for rendering services abroad. It is fully exempt from tax (ii) Allowance to High Court and Supreme Court Judges of whatever nature are exempt from tax. (iii) Allowances from UNO organization to its employees are fully exempt from tax. Payroll process Payroll is defined as a method of administrating employees’ salaries in the organizations. The process consists of calculation of salaries and tax deductions of the employees, administrating the retirement benefits and disbursements of salaries to the employees. It is process of making the financial records like salaries/wages, deductions, withholding items, payment for not worked times (it may be sick leave, holidays) . Salary calculation: The management is fixing some amount as salary to every employee. The particular amount is Fixed salary, from the fixed salary the earned gross (earned salary) will be calculated. For that first the paid days should be calculated, Lop days= month days-paid days Per day salary=Fixed......

Words: 3416 - Pages: 14

Premium Essay

Payroll System Draft

...A PROPOSED COMPUTERIZED PAYROLL SYSTEM JOSEPH ARJAY S. SISON TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES Bachelor of Science in Information Technology System Analysis and Design-SAD 003 October 2012 Part 1 – Summary of Proposal System Title: “Payroll System for BLV Courier Express” Proponents of the System Name: Joseph Arjay S. Sison Adress: 16 3rd Street, Felicidad Village III, Banaba, San Mateo, Rizal Contact Details: 997-1985/0922-861-3937 Description of the System The system is designed as storage of data and information of every payroll of the client. It will ease the clients/users when they search data from the past payrolls. The people that will benefit from the system are the owner and the supervisor of each branch office/business area. The system will let the supervisor to store raw data on day-to-day basis and it will serve as their daily monitoring reports. The system will generate the Payroll when the period where the salary of each employee will be computed arrives, in the client’s case; salaries of employees are paid every last day of the month, therefore the system will generate the Payroll one day before the pay day. The system generates the Payroll by tallying the total jobs done by each employee, then multiply it to its corresponding rate, then computes the salary deductions (i.e.: Income Tax Withheld). The system will let either the owner or the supervisor to look or produce a hard copy of reports in a certain month that can......

Words: 1525 - Pages: 7

Free Essay

Payroll

...Topic Eight: Direct Deposit and Payroll Cards Course Manual for Payroll Practice and Management Online Series 2010 All rights reserved Author: Vicki M. Lambert, CPP Vicki M. Lambert, LLC Introduction Direct deposit is an application of the system known as Electronic Funds Transfer (EFT). This is a system by which commercial payments are made electronically instead of using paper instruments such as checks or drafts. Direct deposit of an employee's wages is extremely popular among employers and employees alike. Employer save money by eliminating the cost of printing checks and replacing lost checks, and the employee also saves time and money by not having to stand in line to make a bank deposit. In addition, many banks give free checking if the paycheck is direct deposited. More and more employers are establishing direct deposit programs under which the net check is deposited directly into an employee's personal checking or savings ac- count. Some employer programs involve direct deposit only to employee accounts at the financial institution where the employer maintains its payroll account. This is known as an "Intra Bank" option. However, an increasing number of direct deposit programs make use of a nationwide network of automated clearing houses (ACHs) that enables the employer to make payroll deposits into accounts maintained by employees at almost any financial institution in the country. Advantages of Direct Deposit Benefits for the employer include: Cost......

Words: 7828 - Pages: 32

Premium Essay

Payroll Fraud

...Running head: Article Review Shawn Detamore January 29, 2012 Payroll fraud schemes happen when an employee generates overcompensation for themselves. There are three types of payroll fraud schemes; ghost employees, bonus and commission schemes and falsified hours and salary (Shields, 2009). This type of fraud accounts for 17% of fraud that is committed in organizations (Shields, 2009). Back in May of 2009, a payroll manager and a retired employee of the Detroit Public School system worked together to steal over $400,000 from the school. They scammed the school by forming a payroll scheme. The payroll manager, Toni Gilbert cut checks to Anthony Carter who had retired back in 2000. When Toni did this, Carter not only received his retirement check, he was also receiving a regular paycheck from the school. This “extra” check that Carter received was split between himself and Mr. Gilbert. Gilbert had worked for the school for over 20 years. In those twenty years, five of them were spent committing fraud. Since the fraud was committed at a school, this constitutes as a federal crime. They were stealing money from the taxpayer dollars. If they are convicted, both employees will face a maximum sentence of 10 years in prison and have to pay a fine of $250,000 (Detroit). Luckily for DPS, the financial Manager and DPS office inspector are the ones that caught the corruption. Since the indictment, DPS is hoping to send out a strong message that fraud will not be......

Words: 773 - Pages: 4

Free Essay

Unit 11 Payroll

...Payroll Administration Unit 11 – Basic Payroll Accounting Unit 11 Learning Outcomes Describe the interaction with an accounting department Demonstrate a basic journal entry Set up an account Summarize amounts paid Introduction Every business must keep records showing transactions relating to goods or services rendered and the costs incurred to run the business, known as expenses. This process is referred to as bookkeeping, which is simply entering each transaction that affects the financial position of the business in a ledger. The term accounting refers to the process of measuring recording summarizing and analyzing the information recorded in the ledger. This helps the company plan and control the activities of the business. Based on this information the company can make sounds business decisions and communicate it the bank, auditors and shareholders. How does this relate to payroll? The payroll department is responsible to ensure that all payroll transactions are accurately recorded in the general ledger of the company. Good internal controls over payroll expenses help the business achieve efficiency and to safeguard the company from financial exposure. Payroll accounting handles the expenses and liabilities arising from compensating employees. Basic payroll transactions which must be accounted for in the general ledger are wages, the employee’s portion of CPP and EI, the employer’s payroll expense (statutory expenses in Ontario) includes the......

Words: 973 - Pages: 4

Free Essay

Outsourcing Payroll and Tax Services

...Pro Staffing Research for Outsourcing Payroll and Tax Services 03/15/2014 Table of Contents Project Scope 4 Requirements 4 Procurement Advantages 5 Savings Analysis 5 Procurement Disadvantages 6 Risks 6 Scoring Matrix for Procurement Proposals 8 Contractual Analysis 12 Considerations 12 Proposal Information 12 Legal Compliance Subjects 12 Proposal Questionnaire 12 Instructions to Proposers 13 Project Scope Pro Staffing research of outsourcing payroll and tax responsibilities versus in-house or new software package to evaluate which process will better meet the needs of corporation in both cost and quality of services. The analysis shows the cost savings for the procurement average 31% less than in-house management either by current processes or new software. Risk/ liability for Federal Tax withholding and reports is moved to the vendor. Requirements The solution needs to provide minimal 1. Direct deposit or mail for employees and contractual workers regular payroll, bonus pay, and expense checks 2. Handle workers compensation payment 3. Payroll withholding 4. Payroll tax management 5. Knowledge of international payments to employees or contractors 6. Online payroll management by Pro Staffing 7. Web access with required registration access for previous W2 and payroll check information for up to five years 8. Documents should be printable or delivery by mail 9. Strict documented......

Words: 1830 - Pages: 8

Free Essay

Payroll

...We are creating a payroll editor / Time PC at Miami Valley hospital system to better help employees with vacation time, trades with in pay-period. Our goal is to develop a system that is “user-friendly” to our HR employees. The information provided will assist the entire payroll department. Thank you for your time and assistance. We will appreciate all your input. * What do you think is the major reason for payroll expansion at Miami valley system? * Expansion of facility (Miami valley south) * Reduction of overtime * Changes in taxes * Other (please specify)________________ * If there is changes in system that can help you complete this task faster, which functions of payroll need to be eliminated? * Does Miami Valley have multiple ways to manage, administer, and report vacation time? If so, which one is faster? * Do you think Miami Valley need to change the procedure in which currently track employee deductions? If so, which steps do you propose? * How do you think current issue related to calculation of overtime be fixed? Please explain any changes in reporting process? * How is information regarding benefits disseminated to employees? ____________________________________________________________ * Would you want this information as part of new payroll editor? * Yes No * How does Miami Valley currently gather employee PTO accruals? * Excel......

Words: 365 - Pages: 2

Free Essay

Proposal

...TABLE OF CONTACT I. PROJECT PROPOSAL 1. Cover page……………………………………………………………page 1 2. Table of content……………………………………………………page 2 3. Introduction…………………………………………………………page 3 4. Aim……………………………………………………………………… page 4 5. Problem definition…………………………………………………page 5 6. Hypothèses……………………………………………………………page 6 7. Objective……………………………………………………………….page7&8 8. Justifications…………………………………………………………page9&10 9. Expectation…………………………………………………………..page11&12 10. Conclusion…………………………………………………………..page13 1. 1 INTRODUCTION Is software and system engineering company founded in 2012, our offices are located in 292 Smith Street Durban South Africa. We supply software engineering solutions through consulting services and implementations of new software products. We strive to provide integrated and innovation solutions to our clients by utilizing the latest technology, best practices and recognized industry standards. Through our knowledge and significant experience in the industry, we add value to our client’s operations and build long term relationships that are mutually beneficial. We achieve excellence through the application of our extensive knowledge and experience in software engineering management (SEM) and system development life cycle (SDLC) combined with process models, simulators and advanced process control systems through project life......

Words: 1480 - Pages: 6

Premium Essay

Payroll System

...their success and capacity to give services. Payroll System is one of the fundamental needs of a company. Payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. From an accounting point of view, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations (e.g. in the US payroll is subject to federal and state regulations). From an ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularities: good employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck. Companies typically generate their payrolls on regular intervals, for the benefit of regular income to their employees. The regularity of the intervals, though, varies from company to company, and sometimes between job grades within a given company. Common payroll frequencies include: daily, weekly,......

Words: 1462 - Pages: 6

Premium Essay

Payroll

...Excel Payroll Program About the Program This is a DIY Excel payroll program. No payroll fees, no payroll charges, and no monthly fees! It is running in Microsoft Excel. It is easy, simple, accurate, and reliable! This Excel Payroll Program Includes EVERYTHING you need! This Excel Payroll Application does all for you: * Keeps payroll records and payroll registers * Prints payroll checks and generates payroll accounting entries * Generates accrual vacation and used vacation reports  940, 941, and DE-9, tax liabilities, payroll summary and detail reports * Prints W-2 Forms with W-3 information reports.  Worker’s compensation insurance premium calculation reports * Customized selection reports.  401K match and calculation; 125P, HSA or garnishment deductions * All reports in Excel format and are usable at your own will A special feature of this program is that you can cut a payroll check at any time. Unlike ADP or other payroll program that you have to select a pay period or to define a pay date before you can print a check, there is no payroll period or payroll date to select. You can enter any date as payroll date on the payroll check. Your payroll liabilities occur as the same dates as your payroll check dates. You may even reprint or redo your old payroll records in back years. For example, if today is November 19th, 2018 you may redo your payroll for January 2011 as if you were paying in 2011 for record keeping purpose. ...

Words: 1767 - Pages: 8

Premium Essay

Payroll

... COMPUTERIZED PERSONNEL PAYROLL REPORT SYSTEM (CPPRS) Presented to the Faculty of the Computer Science Department Palawan Polytechnic College Incorporated Puerto Princesa City In Partial Fulfillment of the Requirements for the degree of Bachelor of Science in Computer Science Victor C. Mahayahay 2012 ABSTRACT Mahayahay, Victor C., Computerized Personnel Payroll System, Bachelor of Science in Computer Science IV, Palawan Polytechnic College Inc. 2012. Adviser: Mr. Francis A. Alterado This project aimed to design and develop as ., Computerized Personnel Payroll System. The researcher would automate the process of the payroll system and managing computations on time for timely payslip issuance to the employees. The proponents gather instruments and materials to build the system, flowchart and data flow diagrams (DFD) were used. CPPRS would be very effective than the manually operated procedure. ACKNOWLEDGEMENT A special word of thanks to the following persons: My Father who is always there to be my guide, encouragement and financial needs. Mr. Francis A. Alterado, for all his critics, suggestions that made me more stronger and positive thinker. My classmates and friends who made my college life unforgettable, Above all, God Almighty for his providence and for the success of this study. Victor DEDICATION ...

Words: 7579 - Pages: 31

Free Essay

Proposal

...GM591 Leadership and Organizational Behavior Project Proposal The company that I will be focusing my project on is The Gidewon Group, inc .The Gidewon Group, inc is a marketing and promotions company that own and operate 4 major night clubs in the Atlanta area. The Gidewon Group is a family owned business managed by the three brothers and includes an office staff of 4. The Gidewon Group serves as the corporate office for all 4 night clubs and is located in midtown Atlanta behind one of the locations. The company was started as a way to manage all the locations form one centralized location. We handle all the finances, HR, events, and day to day operations of the locations. Prior to The Gidewon Group being formed in 2009 each location handled its own operations. The locations were not all successful and 1 location had to be closed in order to meet the financial obligations of the other three clubs. The main reason for this was lack of communication between the brothers. One brother serves as CEO, the other as CFO, and the third as General Manager. I started with the company in 2010 and I serve as the Business/HR manager . Since coming on board with the company I have implemented a payroll process, HR guidelines , and a day to day structure for the company to run by . I however still face the issue of communication between the brothers. We have recently been able to open the fourth location again and now co...

Words: 253 - Pages: 2