Processing your payroll data

What is required to process payroll each week or month

The processing of payroll can produce errors in several places. The procedure we adopt to ensure accurate and timely payroll for our client is as follows:

    • Update client file. We contantly receive notification of changes to employee information that impact the processing of payroll, such as change in pay rate changes or tax code. If so, update the employee file in the payroll software with these changes.
    • Set pay period. Check that the payroll is set for the correct period.
    • Enter hours worked. Enter the amount of regular and overtime hours worked by each employee in the payroll system.
    • Enter manual payments. Enter the amounts of any manual amendments that have not yet been recorded in the payroll system. These may be pay adjustments from previous periods or payments related to the termination of employees.
    • Caclulate termination pay. Manually calculate the amount payable to any employee who has left, including their unused holiday time and redundancy pay
    • Alter deductions. Enter any changes to the standard deductions from employee pay, such as for attachment of earnings and pension contributions.
    • Review reports. Print the following reports and review the underlying transactions for errors. Process payroll again until these issues have been corrected.
  • Electronic payslips, emailed or printed payslips
  • Current and year to date payroll information
  • Summary details of RTI, PAYE, SSP, SMP, NIC
  • Printed P45s for leavers
  • BACS payment reports
  • Issue payments summary and payslips to employer. Once the analysis of reports indicate no futher errors, process payments to employees.
  • Issue management reports. Issue payroll reports to management that are related to the payroll just completed.
  • Back up data. Once the payroll has been completed, back up the data related to it.
  • Close the period. Close the payroll period in the payroll module for the period just completed, to prevent unauthorized changes.
  • Submit a full payment summary (EFS). Verify transmission to HMRC.
  • File timesheets. File the timesheets on the client file. It is quite possible that employees will question their pay, in which case the most recent timesheet should be easily accessible for review.
  • Investigate errors. If there are payroll processing problems, be assured that employees will find them! Investigate all transaction errors encountered, and initiate changes to mitigate their continued occurrence.
  • This may involve the alteration of procedures or the imposition of new controls.
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