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Data validation and testing data validation is a

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DATA VALIDATION AND TESTINGData validation is a process designed to verify the integrity of data for accuracy and consistency. Createreports to validate that all required fields have been accurately populated with new employee personal data.Payroll test, or parallel, runs should be processed to determine whether earnings and deductions arecalculating correctly. When pay frequency changes are not required, validation can be done against aprevious payroll register report.During the validation and testing phase, it is recommended that compliance audits are conducted on boththe existing and the new payroll set-up. It is not uncommon for an organization going through a systemconversion to discover errors in existing calculations or payroll allocations.The CPA recommends using the CRA’sPayroll Deductions Online Calculatorto verify calculations foraccuracy when a new pay frequency or updated calculations are being initiated.
19Mergers and Acquisitions GuidelinesTMRECONCILIATION:CLAWBACKS OR PAYOUTSEmployees whose employment is terminated or who are subjected to changes in employment conditionsas a result of the M&A may have outstanding payments owed to them, require deductions to be reimbursedor have to reimburse amounts to which they are no longer entitled. There can be several reasons behindsuch situations, often related to qualifying criteria under a contract of employment. For example, if anemployee was given a sign-on bonus upon hire and the period of required continuous employment was notmet, a percentage may have to be clawed back.Here are additional examples, which may result in possible claw backs or payouts:Sign-on/retention bonusesTuition fees, bursaries, continued education bonusesEstimated allowances reconciliationEstimated taxable benefits reconciliationStock options or employee stock purchase planLoans, cash advances and drawsAdvanced vacation payExpense report submissions and advancesFINAL SIGN-OFF ON DATAOnce you have completed your analysis of files and records, loaded your employee information andcompleted your parallel testing, ensure that you have final sign-off on the following:Employee profile listingEmployee banking informationEmployee salaries and wagesEmployee balances/accrualsParallel testingFinal testingGeneral LedgerProper sign-off will ensure that the integrity of your data is compliant and correct. Not only is thisnecessary, but it will also prevent incorrect payments and overpayments to terminated employees.Separation of duties is required for this function to prevent fraud.RECORD OF EMPLOYMENTThe Record of Employment (ROE) form must be prepared every time there is an interruption of earnings,regardless of whether or not the employee will be filing a claim for benefits. There are also some specialsituations that require ROEs during M&A activities, such as a change in ownership and/or change in payfrequency.
20Mergers and Acquisitions GuidelinesTMChange in Ownership

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Term
Fall
Professor
NoProfessor
Tags
Employment contract, Canadian Payroll Association

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