What is a Payroll Flowchart?
A Payroll Flowchart is a sequential composition of the payroll cycle. This flowchart contains the content of the flow with shapes as the structure. This diagram serves as a guide used by HR professionals of their prerequisites before payroll issuance. A Payroll Flowchart can be a unidimensional or a cross-functional flowchart depending on possible accounting instances.
How to Construct a Payroll Flowchart
Based on the data from workforceinstitute.org, there are 82 million US workers noted that they have experiences in payroll mistakes in the respective companies they have corporate affiliations with. Failure to use an automated payroll system is only a part of the reasons they mentioned on the site why errors in paycheck occur.
Having a system in any business operations is necessary to obtain fully organized departmental activities and responsibilities. This approach drives your business toward your goal in the industry. Although you plan either to create or to download a flowchart template for your payroll release, you check out the tips we prepared for you.
1. Decide on Flowchart Type
Before you begin constructing your flowchart in any application you prefer, you have to settle with what type. You may have the unidimensional process wherein you only deal with the basic flow of the payroll program or else deal with the complex one wherein further considerations are added. Once you decided the presentation you are in favor of, you may start designing.
2. Begin with the Timekeeping
You always start your payroll flowchart with timekeeping. Here, you need to gather the time information of each of your employees along with its attendance within the payment period. If you have two working schedules, you need to consider that, as well. So, upon creating your payroll flowchart, you input timekeeping foremost.
3. Regard Some Considerations
Holidays, salary differentials, overtime, and performance incentives are a few of the considerations that you need to take part when planning for your payroll flowchart. You need to include this in your payroll diagram because this is common in any workplace, especially those companies dealing with different work shifts and loads. The amount you come up from all the considerations can be added to your employee's gross pay.
4. Consider the Deductions
Lates and absences are a few of the deductions that employees expect from their payroll when applicable. As the person-in-charge, you need to clarify this because workers are always particular with the deductions they get. To keep your payroll forms free from mistakes or legal issues, you need to highlight this part in your payroll flowchart.
5. Auditing and Approval
For you to make your payroll firm, verification should be one of the concerns. A person has to conduct the auditing of salary with both deduction and addition as inclusive factors. If may, there should be a list of a reliable professional who will take the responsibility of ensuring the accuracy of the amount and the calculations.
Right after someone audits the value, this should have approval from authorized personnel. Ensure that your payroll flowchart must have authorized completion.