Checklist For Payroll Processing

The ultimate checklist for accountants payroll software

From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and 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 with holdings & deductions and to ensure the with holdings and deductions are remitted in a timely manner.

The processing of payroll can produce errors in several places, which calls for a detailed process flow that also incorporates several controls. This procedure can be used to ensure that payroll is handled consistently on a repetitive basis.

Please find the below checklist for payroll processing :

1.Review register for actual employees.

2.Complete documents for new hires.

3.Time cards signed for approvals.

4.Salary hourly rate correct.

5.Hours accurate and approved.

6.Overtime paid at an appropriate rate.

7.Work hours charged to job costing.

8.Maintain accurate employee attendance.

9.Maintain accurate holiday and sick leave.

10.Withholdings deducted correctly.

11.Are there any salary changes this month?

12.Additional Deductions/Payments are calculated or not?

13.Taxes double checked.

14.Taxes deducted from bonus checks.

15.Employees advances paid.

16.Review payroll reports.

17.Payroll reports filed timely.

18.Tax payments paid timely.

19.Payroll adjustments.

20.Direct deposit accounts reviewed.

21.Full and final settlement process.

22.Determine state and local tax liabilities based on your locality.

23.Deduct additional employee items such as retirement and savings plans, health insurance, charitable contributions or garnishments.

24.Has anybody joined/left the Pension Scheme?

Deductions can be like:-

-Provident Fund

-Professional Tax

-Income Tax

-Loans or advances

-Other recoveries

-Misc Change


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