Sumit
(CA Practice )
(675 Points)
Replied 10 May 2007
I am giving below you the details as required by you for any other thing you may again contact me at my email id sumit.aggarwal @ rediffmail.com
Thanks
Sumit Aggarwal
Payroll & Other Legal Compliances
Payroll
„« Whether the salary and other payments in the case of employees covered by wage board are governed by rules of the award and in the case of other employees as per the approved pay scales, standing orders and rules framed by the company;
„« Whether the individual salary or wage record/service card is correctly maintained either manually or in computer;
„« Whether proper procedure exists for giving normal increments to workers and that the same is correctly followed;
„« Whether all changes affecting the payments or deductions are duly authenticated and posted in the individual salary or wage record;
„« Whether the Personnel Department¡¦s orders are verified for promotions/new appointments;
„« Whether the pay sheets are prepared correctly as per the particulars of attendance records / time cards and absentee statements, by tracing the monthly entries of input fed to EDP for preparing pay sheets;
„« Whether leave is sanctioned according to the rules of the company and the postings in the leave cards are correctly made; and
„« Whether the leave cards are maintained properly including the posting of encashed leave period;
„« Whether the different allowances like house rent allowance, city compensatory allowance, dust allowance, heat allowance, conveyance allowance etc. are paid to the eligible employees as per the rules framed by the management; while checking house rent allowance, the rules for deduction for occupying company¡¦s quarters, if any, must be kept in mind;
„« Whether Overtime (OT) allowance tallies with the time cards, and has been paid at correct rates with the sanction of the competent authority;
„« Whether PF and FPS remittances are made within due dates;
„« Whether final settlement payments have been made properly after obtaining No Due Certificates from concerned departments.
„« Whether the monthly salary sheet is reconciled with the previous month¡¦s salary sheet; it is prepared by one person and checked by another
„« Whether the cheque or bank advice is issued for the correct amount, where salary is paid by cheque or credited to bank account/given by DDs etc.;
„« Whether the amounts have been properly acknowledged by employees in writing, with revenue stamps, and that there are valid authorisations in case of payments of salary to a person other than the concerned employee;
„« Whether the payments towards leave travel concession / travelling allowance, medical claims and encashment of leave (including advances) are verified for eligibility and noted in relevant registers and calculations checked before the payments are made; whenever advances are give, whether proper control is kept by way of registers and periodic reconciliation and that they are settled within a reasonable period of time;
„« in the case of loans and advances -
a. proper registers are kept wherein all payments and deductions are entered,
b. the relevant authority has sanctioned them as per the rules framed in this regard¡¦
c. sureties are obtained wherever necessary, and
d. the whole amount of advance and interest is correctly calculated and recovered;
„« Whether bonus payments are correctly calculated taking into account the actual attendance and the percentage to be paid; and
„« Whether the unpaid wages, bonus and other dues are -
a. promptly noted in a register, indicating the payment date and voucher number to avoid double payment to the same person,
b. the list is correctly prepared as per the particulars and amounts shown in the pay sheets¡¦
c. subsequent payments are made to the correct person, after verification with photo identity card the total amounts are reconciled employee-wise with the financial ledger monthly.
„« Whether the attendance records are being maintained properly
„« TDS Compliances, Tax declarations, bills for reimbursements are to be verified
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