Pindi Yulinar Rosita

008201905023

Session 11

Chapter 15 : The Human Resources Management and Payroll Cycle

The human resources management  (HRM)/payroll cycle adalah serangkaian aktivitas bisnis dan
operasi pengolahan data terkait yang terus menerus berhubungan dengan mengelola kemampuan pegawai
secara efektif. Tugas-tugas yang lebih penting meliputi sebagai berikut :

1. Merekrut dan mempekerjakan para pegawai baru.

2. Pelatihan.
3. Penugasan pekerjaan.
4. Kompensasi (penggajian).
5. Evaluasi kinerja.
6. Mengeluarkan pegawai karena penghentian yang sukarela maupun tidak.

Ancaman dan kontrol

 Pembaharuan Master Data Penggajian

Threats Controls
Perubahan data gaji tidak sah Mengadakan kontrol akses data
Pembaharuan yg tidak akurat Kontrol integritas pemrosesan data

 Validasi Kehadiran
Threats Controls
Data kehadiran tidak tepat atau tidak akurat Otentikasi biometrik

 Persiapan Penggajian

Threats Controls
Kesalahan dalam pemrosesan daftar gaji Menerbitkan laporan laba rugi kepada
karyawan

 Pencairan gaji

Threats Controls
Pencurian atau penipuan distribusi gaji Pembatasan akses fisik ke cek kosong dan cek
mesin tanda tangan
Aktivitas Siklus Penggajian
1. Update database master payroll
2. Validasi waktu dan data kehadiran
3. Mempersiapkan prosedur penggajian
4. Prosedur pembayaran gaji
5. Menghitung dan memberikan keuntungan, pajak, dan potongan karyawan sukarela.
Biro jasa penggajian (payroll service bureau)
Sebuah organisasi yang mengelola file induk penggajian untuk tiap kliennya dan menjalankan aktivitas
pemrosesan penggajiannya untuk sebuah bayaran.
DISCUSSION QUESTION 15 1-5
15.1 Should CPA firms continue to use time sheets for their employees? Why, or why not?
Answer : The importance of timesheets for employees is something every company should
consider. This time tracking method establishes proper synchronization between the number of
employees and productivity levels.Software for this process empowers supervisors to arrange
scheduling without errors commonly associated with manual processes. Supervisors can track
performance and make effective departmental decisions.The flexible use of timesheets does
more than calculate payroll. Now, this method of tracking employee time is also useful for
management accounting. Managers can record start and end times for tasks, and identify
problematic ones that may delay completing projects. A detailed breakdown of each task is also
useful for different projects.A major use for timesheets is in a project management environment.
Increasingly, employers see benefits of timesheets for costing and estimation of projects.
Additionally, managers can compare planned costs versus actual costs for different projects and
programs.This information helps with current projects and planning future ones.
15.2 An important step in the payroll cycle is to validate each employee’s time and attendance
data. How an employee’s time and attendance data is collected differs depending
on her pay status. Explain how IT can reduce the risk of intentional inaccuracies in time
and attendance data. (For example, some manufacturing companies now use biometric
authentication techniques, such as hand scans, to verify the identity of the employee
who is clocking in and out of work.
Answer :
IT can also reduce the risk of intentional inaccuracies in time and attendance data.
(I) Access control to the payroll system: The company can use biometric authentication
techniques, such as hand scans, to verify the identity of the employee who is clocking
in and out of work. The objective is to prevent an employee from leaving work early
but having a friend falsely record that person as being at work. On the other hand, the
data entry is conducted by an authorized payroll clerk after collecting time cards
from different departments.
(II) Segregation of duties is also important. Employee’s time card data should be
reconciled to the job-time ticket data by someone not involved in data entry. The
total time spent recorded on the job-time tickets may be less than the attendance time
indicated on an employee’stime card because of idle time occasionally. (iii)
Requiring departmental supervisors to review and approve time cards and job-time
tickets provides a detective control on the accuracy of time and attendance data.
Supervisory review is particularly important for employees who works at home or
customers’ placeto make sure they are not operating a personal business using
company-provided assets.
15.3 You are responsible for implementing a new employee performance measurement system
that will provide factory supervisors with detailed information about each of their
employees on a weekly basis. In conversation with some of these supervisors, you are
surprised to learn they do not believe these reports will be useful. They explain that they
can already obtain all the information they need to manage their employees simply by
observing the shop floor. Comment on that opinion. How could formal reports supplement
and enhance what the supervisors learn by direct observation?
Answer :
Formal reports on employee performance are not intended to replace direct observation, but to
supplement it. Direct observation is important, but a manager cannot observe all employees all the time.
It is also difficult to accurately summarize detailed observations across time.
How could formal reports supplement and enhance what the supervisors learn by direct
observation?
Well-designed reports provide quantitative summary measures of aspects of employee performance that
are believed to be important to the achievement of the organization’s goals. Quantitative measures
facilitate tracking performance trends over time. These benefits, however, will be difficult for many
managers to understand until they have had experience in using such reports.
There are also legal issues at stake. If an employee or former employee brings suit against the employer,
supporting documentation may justify the employer’s position.

15.4 Sales staff are often paid in a different manner compared to other employees. Explain
how the payment of sales staff can differ from the other staff, such as secretarial staff.
Answer :
Sales staffs are often paid either on a straight commission basis or a combination of a salary plus
commissions. This is done to achieve or exceed sales target. The HRM/payroll system will need input
from the sales and other cycles to properly calculate commissions and bonuses for such employees. It is
important that an incentive and bonus system sets realistic, attainable goals that are congruent with
corporate objectives (examples: increase profit, increase market share, increase reputation etc). It is also
important that managers monitor incentive and bonus goals and ensure that the attainment of such goals
does not lead to undesirable behavior. Using electronic direct deposit for payroll helps employers save
time and avoid duplicate paychecks. The manager is required to sign on a list of payroll (employee
name, bank account and amount) instead of signing on a number of individual paychecks one by one. It
also reduces administrative work for distributing the paychecks to employee and save postage for
mailing the check to employee.
15.5 Describe the benefits and threats of incentive and bonus programs. Explain the benefits,
both to companies and employees, of using electronic direct deposit for payroll.
Answer :
There are many benefits to offering direct deposit, whether it’s in response to a major business
disruption or at any point during your business operations:
 Your business can reduce the time spent on certain payroll-related tasks.
 Your business can save money by not writing, printing, and mailing checks
 Your business can pay employees on time.
 Your business can be more environmentally responsible
 Your business can be more secure.

PROBLEM 15-5
15.5 Arlington Industries manufactures and sells engine parts for large industrial equipment.
The company employs over 1,000 workers for three shifts, and most employees work overtime
when necessary. Figure 15-10 depicts the procedures followed to process payroll. Additional
information about payroll procedures follows:
 The HRM department determines the wage rates of all employees. The process
begins when a form authorizing the addition of a new employee to the payroll
master file is sent to the payroll coordinator for review and approval. Once the
information about the new employee is entered in the system, the computer
automatically calculates the overtime and shift differential rates for that
employee.
 A local accounting firm provides Arlington with monthly payroll tax updates,
which are used to modify the tax rates.
 Employees record time worked on time cards. Every Monday morning the
previous week’s time cards are collected from a bin next to the time clock, and
new time cards are left for employees to use. The payroll department manager
reviews the time cards to ensure that hours are correctly totaled; the system
automatically determines if overtime has been worked or a shift differential is
required.
 The payroll department manager performs all the other activities depicted in
Figure 15-10
 The system automatically assigns a sequential number to each payroll check.
The checks are stored in a box next to the printer for easy access. After the
checks are printed, the payroll department manager uses an automatic check-
signing machine to sign the checks. The signature plate is kept locked in a safe.
After the checks have been signed, the payroll manager distributes the
paychecks to all first-shift employees. Paychecks for the other two shifts are
given to the shift supervisor for distribution.
 The payroll master file is backed up weekly, after payroll processing is
finished.
Answer :
a. Identify and describe at least three weaknesses in Arlington Industries’ payroll
process.
 The payroll processing system at Arlington Industries violates the principle of
segregation of duties. The same individual verifies time cards, inputs payroll
information into the master file, prints the checks, machine-signs the checks,
distributes the checks, and prepares the payroll journal entry.
 There is no authorization of employees' time cards by a supervisor or other
objective party such as a timekeeper.
 Time cards are not stored securely when completed on Fridays.
 There is no authorization of overtime.
 The payroll checks are not prenumbered nor are they properly stored. As a
result, there is no audit trail to verify check usage.
 Supervisors for the second and third shifts distribute paychecks.
b. Identify and describe at least two different areas in Arlington’s payroll
processing system where controls are satisfactory.
 The personnel department determines the wage rate and initiates the setup of
payroll records, which is a good example of segregation of duties.
 A backup of the master file is made after each weekly processing of the payroll.
  A local accounting firm provides Arlington Industries with updates on tax rates.
 Time cards are reviewed for accuracy.
CASE 15-1 Research Report: HRM/Payroll Opportunities for CPAs
Payroll has traditionally been an accounting function and some CPAs have provided payroll
processing services to their clients. Today, CPAs are finding additional new lucrative
opportunities to provide not only payroll processing but also various HR services. Write a brief
report that compares the provision of payroll and HR services by CPAs with that of national
payroll providers. Perform the following research to collect the data for your report:
1. Read the articles “Be an HR Resource for Your Clients,” by Michael Hayes and
“Hired Help: Finding the Right Consultant,” by Joanne Sammer, both of which were
published in the November, 2006 issue of the Journal of Accountancy.
2. Contact a local CPA firm that provides payroll and HR services and find out what
types of services they perform and what types of clients they serve.
Reports will of course vary from student to student; however, the following presents some points
that should appear in a student’s report:
1. CPA’s naturally have the necessary skills to provide payroll and human resource (HR)
services.
2. Although national payroll providers also provide the same services, CPA’s are in a better
position to provide those services and recommend benefit consultants due to their detailed
knowledge of their client’s business, operations, and internal needs.
3. Even if a CPA does not offer payroll/HR services, they are in good position to help their
client’s choose the consultant for the work that is required.
4. Some of the payroll/HR services a CPA can offer are as follows:
a. Payroll administration
b. Benefits administration
c. Retirement plan administration
d. Human resource consulting
e. Regulatory compliance
f. Outsourcing
g. Management recruiting
h. CFO outsourcing/consulting
i. Labor relations
j. Acquisition/divestiture HR related consulting