2.17 Payroll System Case Study
2.17 PAYROLL PROCEDURE
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.
The actual process flow may vary somewhat from the steps noted below, since there may be differences related to the use of manual, computerized, or outsourced payroll processing solutions.
The most likely version of the procedure, including responsibilities and basic controls, are as follows:
Update employee master file: the payroll clerk will probably receive notification of a number of changes to employee information that impact the processing of payroll, such as withholding exemptions and pay rate changes. If so, update the employee master file in the payroll software with these changes. …show more content…
According to Whitten, Bentley and Dittman (2001), information system is an arrangement of people, data, processes, and interface that interact to support and improve day-to-day operations in a business as well as support the problem-solving and decision-making needs of management and users.
The term Information Management Systems, according to Lucey (2005) has become synonymous with computer; yet, both concepts are not exactly the same because Information Management Systems existed in the life of pre-modern organizations long before the advent of the computer technology. This argument is substantiated by the fact that computer was not in use when organizations kept records using traditional and manual mechanisms to manage information. It is important though to pinpoint that the computer takes credit for increased interest in Information Management Systems (IMS) because it eases and facilitates data processing as well as adds new vistas of interesting career options in IMS (Ottih in Gabriel and Obara,
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.
The actual process flow may vary somewhat from the steps noted below, since there may be differences related to the use of manual, computerized, or outsourced payroll processing solutions.
The most likely version of the procedure, including responsibilities and basic controls, are as follows:
Update employee master file: the payroll clerk will probably receive notification of a number of changes to employee information that impact the processing of payroll, such as withholding exemptions and pay rate changes. If so, update the employee master file in the payroll software with these changes. …show more content…
According to Whitten, Bentley and Dittman (2001), information system is an arrangement of people, data, processes, and interface that interact to support and improve day-to-day operations in a business as well as support the problem-solving and decision-making needs of management and users.
The term Information Management Systems, according to Lucey (2005) has become synonymous with computer; yet, both concepts are not exactly the same because Information Management Systems existed in the life of pre-modern organizations long before the advent of the computer technology. This argument is substantiated by the fact that computer was not in use when organizations kept records using traditional and manual mechanisms to manage information. It is important though to pinpoint that the computer takes credit for increased interest in Information Management Systems (IMS) because it eases and facilitates data processing as well as adds new vistas of interesting career options in IMS (Ottih in Gabriel and Obara,