The authority to hire employees for new positions or to replace departing personnel should be charged to one or two senior people in an organisation. A large establishment may have a personnel department who are responsible for this task and smaller hospitality and tourism organisations may assign this responsibility to a general manager or senior personnel in a department or functional area. It is important that those with the authority to hire new staff are completely separate from the function that prepares payroll. In addition to this, any changes to employee conditions, such as a change of position, change to a pay rate or even when an employee leaves the organisation, should be by the same person or persons. There will be documentation to complete and authorise in each of these cases that will be forwarded to those processing payroll in accordance with individual workplace policies and procedures. Recording and authorising hours worked To ensure that payroll costs are valid, accurate and complete, an effective system of internal control will feature appropriate recording and authorisation procedures. Such procedures are dependant on the nature of employment, the size and scope of the organisation and management policies. Fixed salary Employees in the tourism and hospitality industry are paid according to two broad sets of conditions. The first is employees whose conditions stipulate a fixed monetary amount, commonly quoted as an annual figure. This type of pay is often referred to as a salary. The salary processed by payroll is generally the same for each pay period, a proportion of the annual figure commonly paid fortnightly or monthly. These employees do not record – the hours they work each day unless the conditions of employment include extra remuneration for overtime. Authorisation to process salaries for each pay period will follow one of the following procedures: Senior personnel in functional department managers and the general manager utilise a pre-prepared payroll listing of all salaried employees and verify that each employee was present and working for the pay period. Any variations, such as holiday leave, absence due to illness, extra remuneration for hours worked would be noted on this form and sent to payroll for processing Designated personnel receive or have access to a draft payroll report from the computerised accounting system detailing the employees and the monetary amounts that will be processed. This is verified using appropriate system functions and can automatically advise those preparing payroll that authorisation has been given Designated personnel as mentioned in the first point above, only advise payroll of any changes required in processing salaries. This is called exception reporting. It is
The authority to hire employees for new positions or to replace departing personnel should be charged to one or two senior people in an organisation. A large establishment may have a personnel department who are responsible for this task and smaller hospitality and tourism organisations may assign this responsibility to a general manager or senior personnel in a department or functional area. It is important that those with the authority to hire new staff are completely separate from the function that prepares payroll. In addition to this, any changes to employee conditions, such as a change of position, change to a pay rate or even when an employee leaves the organisation, should be by the same person or persons. There will be documentation to complete and authorise in each of these cases that will be forwarded to those processing payroll in accordance with individual workplace policies and procedures. Recording and authorising hours worked To ensure that payroll costs are valid, accurate and complete, an effective system of internal control will feature appropriate recording and authorisation procedures. Such procedures are dependant on the nature of employment, the size and scope of the organisation and management policies. Fixed salary Employees in the tourism and hospitality industry are paid according to two broad sets of conditions. The first is employees whose conditions stipulate a fixed monetary amount, commonly quoted as an annual figure. This type of pay is often referred to as a salary. The salary processed by payroll is generally the same for each pay period, a proportion of the annual figure – commonly paid fortnightly or monthly. These employees do not record the hours they work each day unless the conditions of employment include extra remuneration for overtime. Authorisation to process salaries for each pay period will follow one of the following procedures: Senior personnel in functional department managers and the general manager utilise a pre-prepared payroll listing of all salaried employees and verify that each employee was present and working for the pay period. Any variations, such as holiday leave, absence due to illness, extra remuneration for hours worked would be noted on this form and sent to payroll for processing Designated personnel receive or have access to a draft payroll report from the computerised accounting system detailing the employees and the monetary amounts that will be processed. This is verified using appropriate system functions and can automatically advise those preparing payroll that authorisation has been given Designated personnel as mentioned in the first point above, only advise payroll of any changes required in processing salaries. This is called exception reporting. It is