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Problem 12

The payroll clerk calculates employee pay based on timecards and tax information. The clerk then manually prepares paychecks and a payroll summary. The cash disbursements clerk reconciles the payroll summary with paychecks and records the transaction. Finally, the treasurer signs paychecks which are distributed to employees on Friday.

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766 views2 pages

Problem 12

The payroll clerk calculates employee pay based on timecards and tax information. The clerk then manually prepares paychecks and a payroll summary. The cash disbursements clerk reconciles the payroll summary with paychecks and records the transaction. Finally, the treasurer signs paychecks which are distributed to employees on Friday.

Uploaded by

accounts 3 life
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© All Rights Reserved
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  • System Documentation – Payroll

Problem 12:

12. SYSTEM DOCUMENTATION—PAYROLL

The following describes the payroll procedures for a hypothetical company.


Every Thursday, the timekeeping clerk sends employee time cards to the
payroll department for processing. Based on the hours worked reflected on
the timecards, the employee pay rate and withholding information in the
employee file, and the tax rate reference file, the payroll clerk calculates
gross pay, withholdings, and net pay for each employee. The clerk then
manually prepares paychecks for each employee, files hard copies of the
paychecks in the payroll department, and posts the earnings to the hard-
copy employee records. Finally, the clerk manually prepares a payroll
summary and sends it and the paychecks to the cash disbursements
department. The cash disbursements clerk reconciles the payroll summary
with the paychecks and manually records the transaction in the hard-copy
cash disbursements journal. The clerk then files the payroll summary and
sends the paychecks to the treasurer for signing. The signed checks are
then sent to the paymaster, who distributes them to the employees on
Friday morning.
Required:

Prepare a data flow diagram and a system flowchart of the payroll


procedures previously described.

10
Answer problem12:

11

10 Problem 12: 12. SYSTEM DOCUMENTATION—PAYROLL The following describes the payroll procedures for a hypothetical compan
11 Answer problem12:

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