Payroll System and Internal Control Essay Example | Topics and Well Written Essays - 2000 words

Payroll System and internal Control - Essay Exampleaintain a list of the names, addresses and necessary information among others especially of the employees working inwardly the organisation (Lambert, 2005).The importance of maintaining a salaryroll system lies in keeping a track upon original specific data especially of the employees which include their salary and incentive structure, pension plans, union membership term and taxes along with the method of calculation regarding the pays of the employees by taking into consideration the available employee data. Payroll systems argon chiefly implemented by using different softw are in order to calculate the employees net pay from various deductions according to the norms and policies of a particular organisation (Mohammed & et. al., 2007)In relation to payroll department system, payroll expresss are usually used or implemented in order to keep a proper record regarding the hours worked by the employees in an organisation on a monthly basis. Apart from the payroll records, a payroll ledger is also used in relation to payroll system. A payroll ledger is a kind of a table that shows the calculated pays of the employees along with the month in which they earned the pay (Mohammed & et. al., 2007)In relation to payroll system, an internal take care can be regarded as a procedure of control and checking various levels of perplexity in terms of financial and non-financial actions or operations of a particular line of reasoning within an organisation in order to make sure that the business actions or operations are conducted successfully (Trenerry, 1999).The internal control of a business within an organisation also focuses towards the procedure of management decision making along with meeting all appropriate legal procedures that eventually leads towards the improvement of whatsoever business organisations (Hightower, 2008).The importance of internal control within an organisation lies in a few of the factor s that include attaining successful business operations, controlling the business