How to analyze payroll in a company?i mean the steps, types of data..?
Answers:
The analyses will differe depending on WHY you want to do the analyses.
For a compliance analyses you will mainly check if the correct deductions are done, and paid to various govt agencies. Yoru focus wuill be on levies in your particular industry and country.
You can also analyse the total cost to company of every post and see if there is a correclation between the cost and the job level.
The AGE old one would be to check for duplications and ghost employees. In small payrolls it is easy, for larger ones you will need a computerised analysis tool. Check for duplication of bank account numbers, id's , social security numbers or any other details. A actual physical check of staff members ion specific date and time has astonishing results.
Then you can check on efficiencies of the payroll itself. Is tax , social security etc calculation being done correctly and timeously. Are employees using payroll as their own mini-bank (multiple deductions for personal accounts).
You must also have division of duties with payroll. Someone must authorise changes (new take-ons, salary increases etc) another must effect the changes, and someone must check the work of both. You need an audit trial right through.
Tell em what you wanna check and I will give you a procedure.
try buying and using the sofware "quickbooks". You can purchase it online or from walmart. If you are not a do it yourself person, get a collegue to recommend an accounting firm.
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