AboutLeo Lingham Expertise Questions include managing work situation, managing work relations,
managing your boss, personal problems, career planning, career
development, training, coaching, counseling etc
Experience 18 years working managerial experience covering business planning,
strategic planning, management services, personnel administration etc
plus
24 years of management consulting in business planning, strategic planning, human resources development, training, business coaching,
etc
Expert: Leo Lingham Date: 7/1/2008 Subject: payroll
Question 1.Is the function of payroll under finance departement or the human resources department?the reason/logic behind
being grouped under one of the deparments? and can we going to do a journal entry before we disimburse a payment to employees like debiting the wages expense and crediting the wages payable while incurring the liability and debiting the wages payable and other payables as well as credting cash in case of payment.
Thank you more in advance
Answer SENAY,
QUESTION 1
Is the function of payroll under finance departement or the human resources department?the reason/logic behind
being grouped under one of the deparments?
The payroll has two elements in it.
1.COMPENSATION
-developing the total compensation package development
for each job position---say, the sales manager.
which includes items like
THIS COMPENSATION DEVELOPMENT IS THE
RESPONSIBILITY OF THE HR DEPARTMENT.
THIS IS A SPECIALISED HR SERVICE, WHERE
-they conduct salary market surveys
-they conduct benchmark of similar cos.
and then decide on the compensation package.
=============================================
2.ADMINISTRATION
-administering this payment monthly/ annually
to the sales manager is the responsibility
of the FINANCE DEPARTMENT.
===================================
THESE DAYS IN LARGE COMPANIES
THE PHYSICAL ADMINISTRATION WORK
IS OUTSOURCED
WHICH MEANS
the finance department hands the work to
an outside specialist company in payroll adminstration.
===========================================
QUESTION 2
and can we going to do a journal entry before we disimburse a payment to employees like debiting the wages expense and crediting the wages payable while incurring the liability and debiting the wages payable and other payables as well as credting cash in case of payment.
YOU ARE RIGHT.
THERE ARE TWO TYPES OF PAYMENT
1. PAYMENT BY CHEQUE / DIRECT TRANSFER TO
THE INDIVIDUAL ACCOUNTS
2. PAYMENTS OF WAGES IN CASH TO WORKERS.
====================================================
REGARDS
LEO LINGHAM
