HRM Cycle - The HRM/Payroll Cycle Agenda Major Business...

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The HRM/Payroll Cycle
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Agenda Major Business Activities and Information Technology in the HRM Cycle The Major Threats and the Related Control Procedures in the HRM Cycle.
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HRM Cycle Business Activities What are the important HRM/Payroll Cycle business activities? recruitment and hiring training job assignment compensation (payroll) performance evaluation discharge of employees, due to voluntary or involuntary termination. This lecture focuses primarily on the payroll system
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Payroll Cycle Activities What are the basic activities performed in the payroll cycle? 1. Update master payroll file 2. Update tax rates and deductions 3. Validate time and attendance data 4. Prepare payroll 5. Disburse payroll 6. Calculate employer-paid benefits and taxes 7. Deduct payroll taxes and other deductions
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Update Master Payroll File (Activity 1) The first activity in the HRM/payroll cycle involves updating the payroll master file to reflect payroll changes such as new hires, terminations, changes in pay rates, or changes in discretionary withholdings. It is important that all payroll changes are entered in a timely manner and are properly reflected in the next pay period.
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Update Tax Rates and Deductions (Activity 2) The second activity in the HRM/payroll cycle involves updating information about tax rates and other withholdings. These changes happen whenever updates about changes in tax rates and other payroll deductions are received from various government units and insurance companies.
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Validate Time and Attendance Data (Activity 3) The third activity in the payroll cycle is to validate each employee’s time and attendance data. This information comes in various forms, depending on an employee’s status. What are some pay schemes? time cards for those paid on an hourly basis self report for professionals
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Validate Time and Attendance Data (Activity 3) straight commission or salary plus commission incentives and bonuses Procedures: The payroll department is responsible for validating employee time records. For factory workers, validation involves comparing the total time worked with the time spent on each job.
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Validate Time and Attendance Data (Activity 3) The payroll clerk calculates batch totals and enters them along with the time data. The batch totals are recalculated by the computer after subsequent processing steps. Payroll transaction data are entered through online terminals. Edit checks are performed on each time and attendance record.
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What are some opportunities of using information technology to v alidate time and attendance data (Activity 3)? collecting employee time and attendance
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HRM Cycle - The HRM/Payroll Cycle Agenda Major Business...

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