Employee costs from payroll and other benefits are among the largest costs in any company other than the Cost of Goods Sold (COGS), rent and depreciation. If you are in a goods producing organization and this cost is part of your COGS or part of your operating costs, it means the effect on you will be doubled. Having these costs processed and reported properly is key for analysis and decision making. This course starts with introductions about the departments of HR and 'accounting and finance' then focuses on the payroll function. The course goes through the process of preparing and calculating payroll and includes the controls needed and the pre-checks necessary to make sure correct data is used. The course enforces the knowledge of controls and proper processes in the work flow to achieve better efficiency in the department. Employee benefits and their effect on the corporation are discussed and we explain how to conduct analysis on payroll and benefits using Excel. In addition, the course highlights the topics of accounting, internal and external audit relations with HR and payroll, and the data that could be required by them. The course then stresses the need for confidentiality in the payroll department and the importance of sharing data with others on a need to know basis or as per corporate policies. The course ends with ways to prepare budgets for the department and payroll and benefit costs of the corporation.
Course Methodology
The course relies on presentations and examples by the consultant. Participants will be expected to work on Excel exercises for payroll and benefits and participate in group workshops and presentations.
Course Objectives
By the end of the course, participants will be able to:
Explain how the HR and accounting and finance functions contribute to their success
Prepare the monthly payroll and review it for accuracy
Calculate employee benefits, loans vacations and End of Service Benefits (EOSB)
Reconcile payroll with accounting and audit the supporting documents for payments
Develop monthly and annual payroll budgets
Design periodic payroll management reports and analysis
Target Audience
Payroll staff, payroll accountants, account assistants, payroll supervisors and managers, HR professionals and team members who handle payroll as well as employees interested in understanding and applying payroll best practices.
Target Competencies
Controling employee costs
Preparing and producing payroll
Analyzing and reporting payroll
Reconciling payroll
Budgeting for payroll expenses
Budgeting for department expenses and needed assets
Course Outline
Payroll: the important link between human resources and accounting
Introduction to the HR function
Introduction to accounting function
Introduction to finance function
Payroll as a link between HR and accounting and finance
Understanding the hiring process documentation
Managing payroll process for:
Contract professionals
Full time employees
Temporary help
Outsourcing
Preparing and calculating payroll
Looking for the right controls before starting
Determining the right calculation basis for payroll
Elements of risk leading to payroll mistakes
Managing increments and deductions
Payroll approvals
Preparing payroll schedules
Employee loans and benefits
Access to employee benefits
Controlling access to loans
Reporting on loans status
Calculating end of service benefits for company and employees
Reporting on benefit plans
Accounting and auditors roles in payroll process
Recording payroll expense and liabilities
Recording payroll and benefits costs to assets or inventory
Recording payroll related contributions and liabilities
Reconciling receivables from and payables to employees with payroll department
Reconciling liabilities with social security and other governmental agencies
Reconciling payments with bank accounts transactions
Introduction to internal audit and external audit
Auditing the payroll
Payroll budgeting
Budgeting for payroll department expenses
Preparing the yearly budget for payroll and contributions for the company
Budgeting for employee loans and other benefits
Reporting payroll and contributions
Determining contribution expense for individuals
Determining corporate contributions
Reporting results to the accounting department
Coordinating with accounting department regarding payment process and control