By Jewell Cochran
Most often in nonprofits, payroll salaries account for the highest percentage of total operating expenses. Just as cash is the most important asset when it comes to safeguarding risk, the process of running payroll also demands very tight policies and procedures. Whether your payroll is bi-weekly or semi-monthly, here are a few things to remember.
- Keep your personnel files complete and current with hiring and personnel management documents.
- Review your payroll procedures annually to ensure proper internal controls are in place given the change in staff within your business office.
- Require that timesheets are complete, reviewed and signed off by both employee and supervisor per the payroll schedule deadlines.
- Ensure that the person who reviews all position and salary changes is independent of the payroll process and the review is done in a timely matter.
Click here to read the second article in this series – Financial Management Best Practices – Internal Controls