The payroll system regulates various procedures that allow companies to find, select, or fire workers, as well as to control the payment of workers' wages.
The procedure depends on the policies of each company because of course the needs and interests of each company are different.
The network of procedures in the salary system consists of the following.
Attendance Timekeeping Procedure
This procedure is useful for recording employee attendance times using the attendance system implemented by each company.
Time attendance records certainly serve to determine the wages earned by workers.
Automatic attendance systems commonly used by companies include digital attendance systems, card use, fingerprint attendance, web-based attendance, and biometric attendance.
Working Timekeeping Procedure
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A company usually applies working hours for 8 hours a day.
If the worker works less than 8 hours, it is considered to go home early.
Meanwhile, workers who work more than 8 hours can be considered overtime.
The policy for going home early and overtime for employees has certainly been regulated by the company and will affect the salaries earned by workers.
Payroll Making Procedure
The procedure for making a list of wages is based on a decision letter regarding the appointment of new workers, dismissal of employees, promotions, demotions, list of salary for the previous month, and list of attendance of workers.
Salary Fee Distribution Procedure
The salary distribution procedure is distributed to each division that enjoys labor benefits.
This distribution is useful for controlling costs and calculating the cost of goods.
Salary Payment Procedure
Wage payment procedures have links to accounting and finance functions.
The accounting function makes cash disbursements orders to the finance function to write payroll checks, while the finance function cashes the checks or sends money to workers' accounts.