Payroll Preparation Control

Objective:

Employee payroll is the single largest controllable expense in the hotel industry and therefore requires strict adherence to procedures.

Procedure:

1. In addition to regulations concerning the key principles of segregation of duties, the following instructions must be followed:

   1. No one involved in personnel record processing or payroll preparation or calculation shall sign personnel authorizations.

   2. Where at all practical, no one involved in preparing or calculating payroll shall have access to or responsibility for company cash, bank accounts or records pertaining thereto.

   3. No one preparing or calculating payroll shall sign personnel authorizations or have custody of or access to personnel files.

   4. The General Manager or Director, Finance & Business Support must pre-approve all wage disbursements. A detailed payroll summary (manual or computer printout) must be presented to the General Manager or Director, Finance & Business Support for his review at the time of approval. This payroll summary must identify each individual employee and the net salary payable.

   5. Cash salary payments must be signed for by the recipient and witnessed by an employee not involved in payroll accounting. Both employees must sign the relevant payroll summary.

   6. Hotel paying employees by bank transfer or cheque must perform verification audits on a rotating basis (each month, the staff members of a different department are required to sign, individually, for the receipt of their salary slip). Director, Finance & Business Support and a different Department Head must sign the verification audits.

   7. From the Payroll Audit result, action will be taken for employee who not sign when the payroll audit happen. As this first indicate that the employee not existing as hotel employee any more. Next payment will be by cheuqe to avoid any mistransfer.

2. Control Register/Reconciliation of Current Month Payroll with Previous Month Payroll

1. The Personnel Department must maintain a control register containing all payroll changes resulting in a gross payroll balance payable. The Personnel Department and the Accounting Department will reconcile this payroll balance payable monthly; will sign for the correctness of the reconciliation in the control register.

2. In order to facilitate the payable balances tally with sides, the following documents or whatever related are required to be distributed in triplicates to each concerns.

• Change of Status  

• Attendance Record  

• Overtime Request  

• Leave Request  

• Notice of Fine  

• Notice of Deduction  

• Monthly Bonus Dividend  

• Applicable Allowances