22. Payroll
Last updated: Tue, Sep 20th, 2016 6:59:43 pm
22.1 The Board must ensure that there are adequate procedures in place for the payment of wages to school staff and other persons being paid by the school and that statutory obligations are met. Persons employed in the payroll function should be made aware of the sensitivity of their role and that confidentiality is required.
22.2 The following procedures are necessary:
segregation of duties is a key control. Each task in the process must be checked by another person. Each should satisfy themselves as to the accuracy and propriety of the transactions and should sign/initial and date to verify same.
determining who may authorise the engagement and discharge of staff
determining who may authorise changes in individual pay rates
establishing a procedure for the notification of changes in personnel
ensuring that former employees are removed from the payroll
determining how wages should be paid, preferably by direct debit
ensuring that voluntary deductions from pay are properly authorised
establishing arrangements for recording attendance, supervision and scrutiny of records
establishing if, and in what circumstances pay advances are permissible and if so, how are they to be notified, who may authorise them and how they are to be recovered
establishing arrangements for the calculation of deductions including statutory deductions e.g. superannuation, PAYE, PRSI, USC, PRD (for personnel entitled to a public sector pension) and ensuring that these are paid over as required
reconciling and explaining changes in total pay and deductions between one pay day and the next
carrying out supervisory and arithmetical checks on payroll preparation. These checks should be evidenced and signed-off and filed appropriately prior to approval of the payroll
comparison of total pay with independently prepared pay estimates or budgets
the making of statutory returns
agreement of gross earnings and statutory deductions to 31 December with P35 return to the Revenue authorities.
making arrangements for completion of declaration certificates by persons in receipt of a pension directly from the school. See Appendix 15.