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
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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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