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#1131231 - 02/17/09 09:56 PM Payroll Posting
Auditjg Offline
Member
Auditjg
Joined: Sep 2004
Posts: 67
Okay, I have a question regarding our internal payroll checking account. I've noticed that the account has been overdrawn and after researching, I noticed that the bank's payroll is being drafted out of the account before the payroll officer transfers the money into the account from the appropriate general ledgers. She noted that she tries to do it the same day, but because of time constraints, she may have to transfer from the GL the next day. I don't like this, but I'm trying to figure out what the risks are (if any) to explain to the officer why this isn't a good practice. Can anyone help me or explain what you do in your banks? Also, is it common practice for the payroll person to be the one transferring the money from the GL?

Thanks!

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Audit
#1131678 - 02/18/09 05:26 PM Re: Payroll Posting Auditjg
Neytiri Offline
Platinum Poster
Neytiri
Joined: Jul 2002
Posts: 645
Pandora
Our outside payroll processor debits our tax and payroll accounts the day before the actual pay date. I am payroll person but also have a host of other duties and responsibilities. Someone other than me (higer up the food chain) must review payroll entries and intial tickets, but sometimes I get delayed and don't always get the entries in on the day the accounts are debited. But they are only overdrawn one day - not longer. I don't like the accounts being O/D either, but in a small shop one person can only do so much and you need to prioritize. Risk? No risk of loss since it is internal and you know the bank has the funds to make payroll. Just make sure all internal controls are followed and the payroll person does not have full control over the entire payroll process.

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#1134634 - 02/24/09 02:00 PM Re: Payroll Posting Auditjg
osoalone Offline
100 Club
Joined: Dec 2003
Posts: 146
Texas
Donna Banker check your pm.

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