Page 16 - Essentials of Payroll: Management and Accounting

Preface

his book is designed for the accountant who is setting up a payroll
system,wants to improve the efficiency of an existing system,or who
T needs answers to the inevitable variety of compensation,tax,deduc-
tion, and record-keeping issues associated with payroll. Each chapter
includes an example of how a company has addressed a specific payroll
issue, as well as Tips & Techniques that offer guidance on how to handle
specific payroll situations.
The book is divided into two parts.The first part addresses the over-

all set of policies and procedures,controls,and best practices that comprise
a payroll system. The second part addresses the processing of specific
transactions, encompassing compensation benefits, taxes, deductions,
and other related issues. The chapters are as follows:
Chapter 1:Creating a Payroll System. This chapter covers outsourced
and in-house payroll systems,emphasizing both manual and computerized
systems. Flowcharts are given for each type of system and for the control

points used with each one.
Chapter 2:Accumulating Time Worked. This chapter describes a variety
of manual and automated methods for collecting time worked,and notes
the situations in which each solution is most viable.
Chapter 3: Payroll Procedures and Controls. This chapter contains
detailed policies and procedures for the primary payroll functions,
which can be easily adapted to suit one’s individual circumstances.
Chapter 4: Payroll Best Practices. This chapter describes a number of
payroll “best practices,” which are highly efficient methods for operating

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