Payroll Documents And Records
Various documents and records are of major importance in supporting the record flow used in the Payroll and Personnel Cycle. Among them are the following:
- Personnel records. Records that include such data as the date of employment, personnel investigations, rates of pay, authorized deductions, performance evaluations, and termination of employment.
- Deduction authorization form. A form authorizing payroll deductions including medical insurance premium, income tax installments, community chest contributions, vehicle loans repayments, mosque building and mendaki fund contributions.
- Rate authorization form. A form authorizing the rate of pay. The source of the information is a labour contract, authorization by management, or, in the case of officers, authorization from the board of directors.
- Time card. A document indicating the time the employee started and stopped working each day and the number of hours the employee worked. For many employees, the time card is prepared automatically by time clocks. Time cards are usually submitted weekly.
- Job time ticket. A document indicating particular jobs on which a factory employee worked during a given time period. This form is used only when an employee works on different jobs or in different departments.
- Payroll cheque. A cheque written to the employee for services performed. The amount of the cheque is the gross pay less deductions withheld.
- Payroll journal. A journal for recording payroll cheques. It typically indicates gross pay, withholdings, and net pay. The payroll journal is generated for any time period from the payroll transactions included in the computer files. The details in the journal are also included in the payroll master file. Journal totals are posted to the general ledger by the computer.
- Summary payroll report. A computer generated document that summarizes payroll for a period in various forms. One summary is the totals debited to each general ledger account for payroll charges. These will equal gross payroll for the period. Another common summary for a manufacturing company is the totals charged to various jobs in a job accounting system. Similarly, commissions earned by each sales person may be summarized.
- Payroll master file. A file that is used to record and maintain the company’s total employee wages paid for the year to date as well as each payroll transaction for every employee. The record for each employee includes gross pay for each payroll period, deductions from gross pay, net pay, cheque number and date. The master file is updated from payroll computer transaction files. The total of the individual employee earnings in the master file equals the total balance of gross payroll in various general ledger accounts.
- IR 8A form. A form issued for each employee summarizing the earnings records for the calendar year for submission to the Inland Revenue Department along with the employee’s tax return. The information includes gross salary, bonus, benefits in kind, employee contributions to the CPF, deductions for donations to approved charities such as Community Chest. This information is prepared from the payroll master file and is normally prepared by the computer.
- CPF payment schedule (CPF Form 91). This form is the payment document which should be returned by the employer to the CPF Board along with the monthly payment of CPF contributions. The form contains particulars including employee name, CPF number, CPF contributions and salary for the month. Where payroll recordings are computerized, the employer can submit payment details abstracted from the payroll master file, in lieu of the CPF Form 91. The CPF Board issues a Statement of Account (CPF Form 90) which is an acknowledgement of the monthly remittance received from the employer.