Step 5: E ACC1510 PAYROLL ACCOUNTING INTERNAL CONTROL PROJECT ou are a college s

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Step 5: E ACC1510 PAYROLL ACCOUNTING INTERNAL CONTROL PROJECT ou are a college student who has just been accepted by a local company for your college inte Your responsibilities will be to perform the responsibilities of a payroll clerk for the payrou to help improve this department during your stay The company has about 18 million in assets. They produce fan blades for the auto industry:You ae responsible for the hourly employees, about 90, who are all union employees Your responsibilities are as follows 1. Collect the time cards from all of the union employees. (Each employee keeps his own time card in his/her pocket and turns it in on Friday (Monday or Tuesday of the next week if it is forgotten.) The company has a time clock. There is a stack of blank timecards next to t he time clock. Each employee grabs one and puts his/her name on top and k Calculate the regular hours and overtime hours for each employee. Your wor time card and summarized on an excel worksheet that you create new each wee Calculate the Federal and State withholding taxes as well as Social Security and Medicare for each employee. This information is put on each employee's timecard Make appropriate non tax deductions (union dues and charitable, and miscellaneous de such as court order deductions) Calculate net pay for each employee on an excel worksheet. each employee's time card. (This is called the payroll register.) Type up the payroll checks for each employee Maintain a payroll ledger card on excel for each employee. keeps it untill it is turned in. 2. 3. 4. k is done on each k. ductions S. This information is recovered from 6. 7. 8. Sign each payroll check. 9. Hand out the payroll checks to each employee on Friday of each week. if an employee is not present, you keep the check in your unlocked desk drawer. (It is unlocked in case the employee asks for the check and you are not present. Someone else can recover the pay check.) 10. Investigate the possibility of direct depositing the paychecks for each employee into their respective bank accounts. 11. Perform the bank reconciliation each month for the separate payroll checking account. 12. Request from the controller a check from the general checking account to fund the payroll checking account. You make the deposit on your lunch time. (You are given an additional 15 minutes to accomplish this task.) 13. Forward the withheld union dues to the union. 14. Forward the withheld charitable contributions to the appropriate charitable organization. 15. Forward the miscellaneous deductions to the appropriate organization. 16. Give all of this information to the controller and assist her in the preparation of a. 940 b. 941 c. W-2 d. Transmittal forms e. All other required payroll forms The controller said that the previous payroll clerk was "let go* due to sloppy record keeping

Explanation / Answer

Internal control weaknesses of Payroll Department

List of internal controls for Payroll Department

Following mentioned are some of internal controls that should be implemented in payroll department-

Ethics of Payroll Department

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