Page 125 - Essentials of Payroll: Management and Accounting

ESSENTIALS of Payr oll: Management and Accounting
employee may be raised from two to three weeks of allowed vacation
at the fifth anniversary of his or her hiring. The payroll department
must have a schedule of when this person’s vacation accrual amount
changes to the three-week level or the employee will come in and

complain about it. If these problems can be overcome, then showing
vacation accruals on the paychecks becomes a relatively simple means
of improving the efficiency of the payroll department.
To achieve this goal, have a schedule available in the payroll depart-
ment that itemizes the dates on which employees with sufficient seniority
are scheduled to have increases in their allowed vacation amounts;
include a review of this document in the monthly departmental schedule

of activities, so that accrual changes can be made in a timely manner.
Also, train the payroll staff to properly enter data into the payroll system
for any vacation hours taken by employees. Finally, create a procedure for
making changes to the data in the automated vacation accrual system, so
that the staff can correct errors in the system.

Cost:

Installation time:

Post Commission Payments on the Company Internet
A sales staff whose pay structure is heavily skewed in favor of commission
payments, rather than salaries, will probably hound the accounting staff at
month-end to see what their commission payments will be.This coincides
to the time of the month when the accounting staff is trying to close the

accounting books, and so increases their workload at the worst possible
time of the month. But, by creating a linkage between the accounting
database and a company’s Internet site,it is now possible to shift this infor-
mation directly to the Web page where the sales staff can view it at any
time, and without involving the valuable time of the accounting staff.

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