How To Conduct An Internal Check On Payment Scheme Of Any Business?

While considering the payment scheme of a huge organization, the wage computation for its different workers operating in different sections, handling the various wage records and even payment initiated to exact official or worker are of great importance. Hence, it is essential to implement an effective internal check to this payment system to regulate any kind of influence or manipulation sources occurring within and see if there is any misappropriation of money by the person in charge.

The following procedures are suggested for an effectual internal check.

  1. Staff members should be admitted to work in a company only after issuing a written order from the concerned head officer or the appointing personnel of the business firm. A detailed copy of the appointment order should also proceed to the wage planning department.

 

  1. A dedicated official should be kept for
  • Maintaining the attendance record of the employees
  • Dealing the leave applications of the workers and sanctioning the same
  • Record the overtime working schedules of each worker and paying them the wage accordingly
  • And distributing the salary amount.

He should also check whether the workers are updating their payment received info on the wage sheet provided to them and also, have to put their signature on it.

  1. Further, the wage sheet should contain the space for filling up the relevant information regarding the salary payment like
  • The name and designation of the employee
  • The concerned term for which the payment is made
  • The amount of payment to be made to various workers
  • The details of basic pay and the allowance made if any like the house rent or other compensatory dealings
  • Deductions made if any and the column for detailing the reason should be included
  • The net payment cash and the signature of the employees for acceptance of payment should also be registered along.

 

  1. Moreover, an individual record book or job cards are to be maintained for entering the details of each employer like the appointment date, pay scale and also for recording the performance of each worker. The copies of all these details including any loan issuing statements should be forwarded to the salary accounting section.

 

  1. The company gate should be installed with the time registering machine that inputs the entry and leaving time of every worker. The late arrival scenes must be reported to the corresponding section for in case of any future reference.

 

 

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