What is an internal control for payroll processing?

 Payroll Processing

1.      Timesheets are to be prepared by all staff on the approved form and submitted semi-monthly on the 15^th and 30^th  of the month.  If the 15^th and/or 30^th of the month fall on a weekend or holiday, the timesheets are to be submitted the day prior to the weekend or holiday. Exceptions to the submittal date may occur and will be communicated accordingly.

2.      Timesheets are to be kept on a daily basis and completed in ink – unless prepared electronically.

3.      Any corrections to timesheets are to be made by making a single line through the error and writing in the correction. Correction fluid and/or tape are not allowable.

4.      Timesheets are to be signed and dated by the employee and the employee’s supervisor for submission to the Owner/President or Bookkeeper.

5.      Any changes to the standing information of the payroll register from the prior period including addition of new employees, deletion of employees, or changes in base pay rate must be accompanied by an Employment Information Form and signed by the Owner/President before the change can be made.

6.      The Bookkeeper will process payroll in a timely manner and record vacation time, holiday hours, sick time, and any other information deemed necessary to properly reflect time worked.

7.      Paychecks will be distributed by the Operations Manager on the 16^th and 31^st of each month. If the 16^th and 31^st fall on a weekend or holiday the paychecks will be distributed the day before.

8.      If the employee requests that his/her check be turned over to a third party, the request must be made in writing prior to distribution.

9.      Employees may choose direct deposit to a designated bank account. Their paycheck is deposited directly into the designated account on the payroll date. The employee will receive a verification stub.

10.   The Owner/President will review payroll expenditures and allocations monthly.

11.    All quarterly federal and state payroll reports will be prepared and filed appropriately.

12.   All W-2 statements are issued to employees prior to January 31^st of the following year for the prior calendar year.