How to Make Step by Step Flow Chart

Topics: Flowchart, Payroll, Tax Pages: 2 (514 words) Published: January 6, 2013
How to Make a Step-by-Step Flow Chart for a Payroll System
By Natalie Grace, eHow Contributor

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A flow chart shows the sequence of your payroll processing duties. A payroll system is the avenue through which you process your payroll. You cannot process your payroll without a payroll system. The three types of payroll system are manual, in-house computerized, and external (outsourced). The manual system requires you process your payroll by hand; the in-house computerized uses payroll software to process the payroll; the external system means you outsource your payroll to a payroll service provider. A payroll system flow chart shows the sequence in which you process your payroll. It streamlines payroll processing and helps you stay on track. Other People Are Reading

What are the Steps in Processing a Basic Payroll? Step-by-Step Payroll Process

Design the flow chart with an office suite program--this is the best route for a professional look. However, you can draw the chart by hand. Create boxes and arrows, which shows the flow of your payroll processing, such as where it starts and ends.

Create a flow chart for a manual payroll system. The flow chart should show all the manual duties involved in processing your payroll via this system.

Example: Gather time cards, check time cards for compliance, contact supervisors regarding missing or questionable time cards, and manually calculate time cards. Create a sequence involving the payroll processing duties, such as manually calculating wages; statutory deductions such as payroll taxes and wage garnishments; salaries; voluntary deductions, such as retirement and health benefits; and creating paychecks. Make another sequence showing post-processing duties, such as manually create and file the payroll register, create and post journal entries, deposit employees' pay into the bank, and distribute paychecks.

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