1. PURPOSE
To review monthly payroll and employee benefits and ensure its compliance with the organizations policies and procedures.
2. APPLICABILITY
2.1. All payrolls and employees’ benefits.
3. DEFINITIONS
3.1. Benefits: Are any perks offered to employees in addition to salary. The most common benefits are overtime, end of service award, retirement benefits, paid time off, and fringe benefits.
4. POLICY
- 4.1. The payroll or employee benefits supporting documents and summary of payroll have to be attached and submitted on a monthly basis by the payroll section to the financial control section.
- 4.2. The general payroll and employee benefits must be sent before the 5th day of each Gregorian month. Additionally, Individual payroll and employee benefits can be sent twice a month (before the 14th and the 21st of each Gregorian month).
- 4.3. The Financial Control section is responsible for reviewing monthly payroll and employee benefits and ensure its compliance with Team One policies and procedures.
5. PROCEDURE
- 5.1. The payroll section (Human Resources) sends the monthly payroll and employee benefits to the financial control section for review and gives initial approval to send it to payable section.
- 5.2. The manager of financial control receives payroll or employee benefits and its supporting documents (hardcopy and through the system), then locks the payroll section privilege to update payroll so that no changes can be done during the review process.
- 5.3. The financial control or auditors start reviewing the payroll and employee benefits through the system and comparing the payroll of the current month with that of the previous month in terms of total salary and elements, with showing the discrepancies between months.
- 5.3.1. In case of any discrepancies, he ensures that the supporting documents justifies these discrepancies (e.g.: copy of promotion, hiring, and bonus decrees, or copy of penalties decrees …etc.).
- 5.3.2. In case there are comments, the accountant financial control sends the payroll or employee benefits back to payroll section after unlocking update privileges for them to do required amendments.
- 5.4. The payroll section does the needed amendments and sends the payroll back to financial control department.
- 5.5. After doing needed amendments and in case there are no comments, the accountant financial control approves the payroll or employee benefits and signs the summary, then sends the payroll or employee benefits to accounts payable section for disbursement and preparing payments.
6. RESPONSIBILITIES
- 6.1. The Human Resources payroll section is responsible for preparing payroll and employee benefits. They also prepare all supporting documents and attach them with the payroll.
- 6.2. The Human Resources payroll section is responsible to prepare the payroll, summary letter and attach all supported documents with the payroll report.
- 6.3. The Financial Control and payroll section are responsible to ensure that payroll and employee benefits compliance with the hospital policies and procedures.
7. APPENDICES
- 7.1. Process graphic: Review Payroll and Employee Benefits (Appendix A).
- 7.2. Process steps: Review Payroll and Employee Benefits (Appendix B).
9. DEVELOPMENT TEAM
- 9.1. The Financial Team.
- 9.2. The Human Resources Team.