McTimothy Associates

Payroll: Preparation, Analysis and Management

Why Attend

Employee costs from payroll and other benefits are among the largest costs in any company other
than the Cost of Goods Sold (COGS), rent and depreciation. If you are in a goods producing
organization and this cost is part of your COGS or part of your operating costs, it means the effect
on you will be doubled. Having these costs processed and reported properly is key for analysis and
decision making. This course starts with introductions about the departments of HR and 'accounting
and finance' then focuses on the payroll function. The course goes through the process of preparing
and calculating payroll and includes the controls needed and the pre-checks necessary to make sure
correct data is used. The course enforces the knowledge of controls and proper processes in the
work flow to achieve better efficiency in the department.  Employee benefits and their effect on the
corporation are discussed and we explains how to conduct analysis on payroll and benefits using
Excel. In addition, the course highlights the topics of accounting, internal and external audit relations
with HR and payroll, and what data could be required by them. The course then stresses the need for
confidentiality in the payroll department and the importance of sharing data with others on a need to
know basis or as per corporate policies. The course ends with how to prepare budgets for the
department and for payroll and benefit costs of the corporation.

Event Date: –

Course Methodology
The course relies on presentations and examples by the consultant. Participants will be expected to do Excel exercises for payroll and benefits, group workshops and presentations.
Course Objectives
By the end of the course, participants will be able to:
 Understand the HR and Accounting and Finance functions and how to contribute to their success
 Prepare the monthly payroll and review it for accuracy
 Calculate employee benefits, loans vacations and end of service benefits (EOSB)
 Reconcile payroll with accounting and audit the supporting documents for payments
 Develop monthly and annual payroll budgets
 Design periodic payroll management reports and analysis
Target Audience
Payroll staff, payroll accountants, account assistants, payroll supervisors and managers, HR professionals and team members who handle payroll and any employees interested in understanding and applying payroll best practices.
Target Competencies
 Control employee costs
 Prepare and produce payroll
 Analyze and report payroll
 Reconcile payroll
 Budget for payroll expenses
 Budget for department – expenses and needed assets

Course Outline
 Payroll: the important link between human resources and accounting
 Introduction to the HR function
 Introduction to accounting function
 Introduction to finance function
 Payroll as a link between HR and accounting and finance
 Understanding the hiring process documentation
 Managing payroll process for:
 Contract professionals
 Full time employees
 Temporary help
 Outsourcing
 Preparing and calculating payroll
 Looking for the right controls before starting
 Determining the right calculation basis for payroll
 Elements of risk leading to payroll mistakes
 Managing increments and deductions
 Payroll approvals
 Preparing payroll schedules
 Employee loans and benefits
 Access to employee benefits
 Controlling access to loans
 Reporting on loans status
 Calculating end of service benefits for company and employees
 Reporting on benefit plans
 Accounting and auditors roles in payroll process
 Recording payroll expense and liabilities
 Recording payroll and benefits costs to assets or inventory
 Recording payroll related contributions and liabilities
 Reconciling receivables from and payables to employees with payroll department
 Reconciling liabilities with social security and other governmental agencies
 Reconciling payments with bank accounts transactions
 Introduction to internal audit and external audit
 Auditing the payroll
 Payroll budgeting
 Budgeting for payroll department expenses
 Preparing the yearly budget for payroll and contributions for the company
 Budgeting for employee loans and other benefits
 Reporting payroll and contributions
 Determining contribution expense for individuals
 Determining corporate contributions
 Reporting results to the accounting department
 Coordinating with accounting department regarding payment process and control
 Reporting to ministry of labor
 Reporting to social security authorities
 Reporting to other regulatory agencies

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