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Narrative Description

The human resources department issues new employee forms and change forms that are sent to the payroll department to manually update employee files. Employees record their work hours which are sent to payroll. Payroll clerks use this information to manually prepare paychecks, payroll registers, and payroll reports which are reviewed by management. Payroll clerks also prepare monthly tax reports which are used to manually create tax payment checks and cash disbursement vouchers. Signed checks and reports are distributed and files are updated.

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1K views2 pages

Narrative Description

The human resources department issues new employee forms and change forms that are sent to the payroll department to manually update employee files. Employees record their work hours which are sent to payroll. Payroll clerks use this information to manually prepare paychecks, payroll registers, and payroll reports which are reviewed by management. Payroll clerks also prepare monthly tax reports which are used to manually create tax payment checks and cash disbursement vouchers. Signed checks and reports are distributed and files are updated.

Uploaded by

Anonymous N9dx4ATEgh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Narrative Description- Payroll Processing System

As the company hires new employees or there is a change to an employee’s payroll status, such as an
increase or decrease in the salary, the Human Resources Department issues or create a new-employee
form and employee-change form. A copy of these data is sent to the Payroll Department and is used to
update manually the Employee or Payroll file and stored these updated files to the Payroll file
alphabetically.

Employees in other departments work and are paid on an hourly basis, so to monitor their working
hours, they record their time in the time cards. Each employee’s time cards are sent to the payroll
department. The Payroll Clerk then uses these time cards, sent by department managers, the copy of
data of Employee or Payroll file from the human resources, and the tax table document to prepare
manually the two-part (original and copy) Paychecks and two-part Payroll Register. They also update the
Employee file to record each employee’s current wage.

The documents stored in the Employee/Payroll file are used by Payroll Clerks to prepare Payroll Reports
each pay period. Together with the original Employee Paychecks, they are forwarded to Susan
(management), for her to monitor, control, and check the labor expenses. On the other hand, Payroll
Clerks also use the stored data in the Employee or Payroll file to prepare a two-part Monthly Tax Report.
The duplicate copy is added to the tax records in the Payroll file, while the original copy of the tax report
is sent to the Salaries Payable Clerk included with the original copy of the Payroll Register.

The original Tax Report is used by the Salaries Payable Clerk to prepare a two-part Tax Payment Check
and two-part Cash Disbursement Voucher manually. The original Tax Report, original Tax Payment
Check, and original Payroll Tax Cash Disbursement Voucher is forwarded to Susan, while the duplicate
copy of Tax Payment Check and Payroll Tax CD Voucher is stored in the Salaries Payable file by date.

The original Payroll Register data is used by Salaries Payable Clerk to prepare a two-part Payroll Check
and Payroll CD Voucher. The original Payroll Register, Payroll Check, and Payroll CD Voucher are
forwarded to Susan, while the duplicate copy of the two documents is stored by date in the Salaries
Payable File.

The original documents sent by the Payroll clerk and Salaries Payable clerk to Susan will then be
reviewed by her, approved if the information is correct, otherwise rejected or returned, and sign the
checks. The signed Tax Payment Check and Tax report are passed to the appropriate governmental
agency, the signed Payroll Check is forwarded to the bank, signed Employee Checks to the employees,
the payroll report will be stored by date in the Payroll file, while the Payroll Tax CD Voucher and Payroll
CD Voucher will be forwarded to Ashton.

Ashton uses the two original documents information to manually post to the general ledger and mark
the voucher posted. Then he files the CD Vouchers, numerically.

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