I need help.Thank you. You are a college student who has just been accepted by a
ID: 2532199 • Letter: I
Question
I need help.Thank you.
You are a college student who has just been accepted by a local company for your college internship. Your responsibilities will be to perform the responsibilities of a payroll clerk for the payroll department-hourly employees for the first quarter of 2017. She also wishes for you to help improve this department during your stay. The company has about 18 illion in assets. They produce fan blades for the auto industry. You are responsible for the hourly employees, about 90, who are all union employees. Your responsibilities are as follows Collect the time cards from all of the union employees. (Each employee keeps his own time card in his/her pocket and turns it in on Friday (Monday or Tuesday of the next week if it is forgotten.) The company has a time clock. There is a stack of blank timecards next to the time clock. Each employee grabs one and puts his/her name on top and keeps it until it is turned in Calculate the regular hours and overtime hours for each employee. Your work is done on each time card and summarized on an excel worksheet that you create new each week. 1. 2. 3. Calculate the Federal and State withholding taxes as well as Social Security and Medicare for each employee. This information is put on each employee's timecard. Make appropriate non tax deductions (union dues and charitable, and miscellaneous deductions such as court order deductions) Calculate net pay for each employee on an excel worksheet. This information is recovered from each employee's time card. (This is called the payroll register.) 4. ENG 5. 04 PM 6/04/2018 6. Type up the payroll checks for each employee 7. Maintain a payroll ledger card on excel for each emploveeExplanation / Answer
Answer: The internal control deficiency founded in company in respect of Pay-roll:
1.Turning in of time-card should be made mandatory on friday, there should not be any relaxation with regard time card submission. For this a fine could be imposed on late submission of time-card.
2. Proper calculation for net payable to employees shall be done on excel inclusive to done on time-card, there may be chances of error in direct calculation of net payable on time-card.
3. Unlocked desk drawer cointaing pay-checks.
4. Accessing third party to pay-checks.
5. No authorise control over time-card.
6. No proper over deposit of fund from general fund accounts to pay-checks accounts.
Part 2: Internal control that could be made:
1.Separate file for each labour should be made.
2. Loceker containing pay roll should be locked and no third party should be given access to that.
3. Two person jointing and severally made responsible for pay roll issues.No single person should do all the work.
4. Balance reconcilation from pay-roll register with that of bank account should be done on month end basis.
5.Total of ledger and apy-roll should be done on month end basis.
6. A responsible shall be responisble for payment of Dues to goverment on timely basis or an arrangment could be made from bank to made payment in goverment on a fixed date to ensure timely payment.
7. Deduction for miscellanous payment should be done on timely basis and there after proper payment should be done by a responsible person.
8.Employee pay-roll should be properly updated.
9. A follow up on pay roll account should be done to ensure whether payment actually being made to employee account or not.
Part c. Work ethics for the employees:
Honestly involve inwork.
Report any discrepency find out.
Accountable for thwe work done.