WAGES AND SALARY PROCEDURE

Karina Adhitia (105030200121015)

Documents Needed

•Supporting documents of wages and salary modification

•Clock Card

• Job Ticket

• List of wages and list of salary

• List of wages and salary recapitulation

•Wages and salary statement letter

•Wages and salary envelope

•Proof of cash disbursement

Accounting Report

Related Function

Personnel functionPersonnel function

Time keeping function

Time keeping function

The list maker of wages and salary

function

The list maker of wages and salary

function

Accounting Function

Accounting Function

Financial FunctionFinancial Function

Responsible to find new employee, employee candidate selection, deciding employee

placement, make decision letter of wages and salary tariff

Responsible to find new employee, employee candidate selection, deciding employee

placement, make decision letter of wages and salary tariff

Responsible to implement job time keeping for all of the employee in the company

Responsible to implement job time keeping for all of the employee in the company

Responsible to make wages and salary list that contain gross wages and salary that become a

right and other deductions that become an expense of each employee in a wages and salary

payment period

Responsible to make wages and salary list that contain gross wages and salary that become a

right and other deductions that become an expense of each employee in a wages and salary

payment period

Responsible to record liabilities that appear in relation with the payment

of wages and salary

Responsible to record liabilities that appear in relation with the payment

of wages and salary

Debt department

Cost Card department

Journal department

Responsible to fill the check of wages and salary payment and cash down it to bank. Then, that

money will be insert to an envelope and will be give to the employee

Responsible to fill the check of wages and salary payment and cash down it to bank. Then, that

money will be insert to an envelope and will be give to the employee

ProceduresSalary system:1.Attendance time keeping procedure2.Salary list making procedure3.Salary cost distribution procedure4.Proof of cash disbursement making procedure5.Salary payment procedure

Wages system:1.Attendance time keeping procedure2.Job time keeping procedure3.Wages list making procedure4.Wages cost distribution procedure5.Proof of cash disbursement making procedure6.Wages payment procedure

Elements of Internal Control• ORGANIZATION1.List of wages and salary making function should be separated from financial function2.Attendance time recording should be separated from operational function

• AUTHORIZATION SYSTEM1.Every people that their name is appear on the list of wages and salary should has

employment decision letter as an employee, together with the sign of the Director2.Every modification in employee’s wages and salary because of the changes in

position, changes of wages and salary tariffs, and family addition should base on financial director’s decision letter

3.Every deductions of wages and salary (except employee’s income tax) should be base on deduction letter of wages and salary that authorized by the personnel function

4.Clock card should be authorize by the time keeping function5.Overtime job order should be authorize by the head of personnel department6.Wages and salary list should be authorize by the personnel function7.Proof of cash disbursement for wages and salary payment should be authorize by the

accounting function

• RECORDING PROCEDURE1.Modification in employee’s salary record should be reconciliation with the

list of wages and salary 2.Verified the wages tariffs, whether it’s accurate or not by the accounting

function

• HEALTHY PRACTICES1.Clock card should be compare with the job card before this card used as a

base of direct-employee cost distribution2.Entering clock card to the time record machine should be supervise by the

time keeping function3.Wages and salary making should be verified first about its validity and its

accurate calculating by the accounting function before they do the payment

4.Income tax calculation of the employee will be recon- ciliate with the employee’s fee record

5.Employee’s fee record saved by the list of wages and salary maker function

ESL

Time Keeping Dept.

Recording attendance

time

START

Clock Card

Clock Card 2Attendance 1 list

Make attendance

list

1

Wages and Salary Dept.

1

Clock Card 2

Attendance 1 List

Make salary list

Make salary

recapt.

SDL2

SLR 12

Salary list 1

Salary card 2

T

8

Salary List 2

PCD 3

T A

Salary Procedure

ESL

Debt Department2

ESL

SDL2

SLR 12

Salary list 1

Make PCDSDL

2SLR 1

2Salary list 1

32

PCD 1

Register PCD

3 4

7

SLR 2Salary List 1

PCD 1

9

Record the check number from Register PCD

4ESL

SDLSLR 2

2Salary list 1

3PCD 1

Fill check, ask for sign

Cash down the check, enveloping money

Pay the salary, ask for sign

Paid in full stamp

6

6

ESL

SDLSLR 2

2Salary list 1

3PCD 1

7 8

Insert to the

envelope together

with money

3

PCD 2

SLR 1

Make memorial evidence

PCD 2

SLR 1 Memorial

evidence

General Journal 5

9

SLR 2

Salary list 1 PCD 1

Check Register N

FINISH

PCD 2

SLR 1 Memorial

evidence

Cost Card N

5

Recording attendance

time

START

Clock Card

Clock Card 2Attendance list

Make attendance

list

1

Recording Job time

START

Job Card

Job Card 2Job time list

Make Job Time list

2

WAGES PROCEDURE

Wages card

1

Clock Card 2Attendance list

2

Job Card 2Job time list

Compare

Make wages list

Recap. & Wgs statement

letter

WSL2

WLR 12

Wages list 1

Wages Card 3

9

Wages List 2

PCD 3

T A

ESL

3

ESL

WSL2

WLR 12

Wages list 1

Make PCDSL

2WLR 1

2Wages list 1

32

PCD 1

Register PCD

5

7

WLR 2Wages List 1PCD 1

10

Record the check number from Register PCD

4

4ESL

WSLWLR 2 2 2

Wages list 13

PCD 1

Fill check, ask for sign

Cash down the check, enveloping money

Pay the wages, ask for sign

Paid in full stamp

6

6

ESL

WSLWLR 2

2Wages lis 1

3PCD 1

7 8

Insert to the

envelope together

with money

5

PCD 2

WLR 1

Make memorial evidence

PCD 2

WLR 1 Memorial

evidence

General Journal 9

10

WLR 2

Wages list 1 PCD 1

Check Register N

FINISH

PCD 2

WLR 1 Memorial

evidence

Cost Card

N

9

Staple Products

Price Card