Accounting Procedures Handbook

19 PAYROLL ACCOUNTING I. OVERVIEW The payroll function is a significant accounting function within the Board of Education. The Payroll Department is responsible for setting up new hires in the payroll system, keeping track of time/attendance for all Board employees using the Kronos system, calculating the proper pay for each employee, tracking use of accruals and preparing the paychecks. Most employees are paid semi-monthly throughout the year. Teachers and other employees who work on a 10-month work schedule can choose to be paid over that 10-month time frame or can choose to be paid their salary over a 12 month time frame so they receive direct deposit during the summer months. The Board has mandatory direct deposit for all employees. Pre- notes are the only exceptions where checks are printed. Just as in the general checking account, there are 2 authorized check signers required on all payroll checks: The Superintendent and the Comptroller. These signatures are created as part of the check printing process. Control is exercised over the process via a password-protected form to control the signing of all checks. Blank check stock is kept locked in the vault until needed. Printed paychecks are also locked in the vault until distributed. II. CONTROL OBJECTIVES • To ensure salary and wage expenditures are reported in accordance with generally accepted accounting principles. • To ensure that all paid employees exist. • To ensure that each employee is paid his or her appropriate rate as established by Human Resources. • To ensure that time and attendance is accounted for accurately. • To ensure that all withholdings are deposited in a timely manner. • To ensure that all required reports are filed in a timely manner. III. PROCEDURES A. New Hire Procedures • Payroll department receives new hire information from the Human Resources department. [Personnel Information Form (PIF)]. • The Payroll Specialist then compares the annual salary on the PIF to the data entry in the HRPYPA screen of BusinessPLUS. The Payroll Specialist informs Human Resources of any differences in salary between the two, and then reviews the salary again after correction. • All information is then updated in the Kronos system so time and attendance can be maintained by the payroll editors. • Account numbers are entered by the Payroll Manager, and then the PIF is filed. • Direct Deposit forms are received from the HR department if the new employee desires to have their pay deposited into a checking or savings account. If no direct deposit form is received within two pay periods, the employee is assigned a pay card. • All payroll deductions are entered into the payroll software by the Payroll Specialist. • Tax forms (W-4 and MW507) are received from the HR department and input into the payroll software by the Payroll Accounting