Reconciling is all about checking to ensure calculations are correct and the employee is being paid the right amount. Where multiple payroll officers make up the team, they should segregate their duties. This means that the person making payments should not be involved in the reconciliation. This minimises the risk of dishonest behaviour and fraudulent transactions.
4) Entitlement details
Here we process any leave entitlement whether it be used in the pay period or accrued. This should be detailed on the pay slip. When processing annual leave used, it often doesn’t have the same loadings that would apply when worked. For example, Sunday or public holiday loadings wouldn’t apply.
If you’re working, you’re getting paid to do it. But is it as simple as that? There are some key variables to consider for each individual within your payroll system, such as voluntary deductions, pay rates and tax rates, just to name a few. In this Volume, you will develop an understanding of how to manage a payroll system, including how to calculate and process payments across all variables for your team. You will also look at strategies to protect your secure team information and meet your legal requirements for reporting and processing payments.
3) Check for allowances
Check for allowances that the employee is entitled to be paid. This might be for anything from a phone to travel allowances. These are ongoing amounts that the team member may be entitled to – based on the agreement they have with the business or that they are entitled to as per the award. These might be paid before or after tax, so this step is interchangeable with step 2.