Bridgewater College
Internal Control Memo on Payroll
February 1, 2011
The Director of Human Resources (DHR) enters all new employee profiles and pay rates.
The College’s payroll process begins when the Human Resources Assistant (HRA) receives
online timecards in accordance with established deadlines. The College uses secure Web Advisor
to record online timecards. Most employees submit their time into Web Advisor, but maintenance
and housekeeping employees currently complete paper timecards using a time clock and their
immediate supervisor enters all timecards and the department director approves them. The DHR
inputs any additional payments due to employees such as stipends to professors. For these special
payments, the department chair (budget manager) provides required approvals and the appropriate
general ledger number. The HRA creates an import file that lists all employees, their hours and
total pay; which allows the payroll process to run within Colleague (Datatel administrative
system). All employees are paid bi-weekly.
The HRA runs a payroll calculation report and verifies that this report matches the import file for
each employee. The HRA also compares the current period payroll with the last period’s payroll
to determine reasonableness, considering any new employees, terminated employees, or stipends.
The payroll is reviewed by the DHR after it is completed.
To print payroll checks, the HRA retrieves laser forms that are stored in the copy room and places
them in the laser printer. Approximately 99% of the college’s current employees participate in
the direct deposit program and view their advices on line. Paper checks are printed on the laser
printer with preprinted signatures. A MICR-ink print cartridge is required and security measures
are implemented to restrict payroll printing authorization to the HRA. The HRA calls the ACH
department of SunTrust Bank and gives them the amount of the total payroll to be transmitted.
The next day SunTrust is called to make sure the transaction took place and that the proper dollar
amount was transferred to cover the payroll. The checks are then stuffed, sealed, and placed in the
mail.
A separate payroll account is maintained at SunTrust, with transfers made from the primary
operating account to fund each payroll.
The HRA provides FICA and other tax reports to the Controller, along with the total dollar
amount of the payroll, so that all appropriate journal entries can be recorded.
When an employee is terminated, an ending date is entered for their name and position in the
Colleague payroll module. No pay can be calculated or added for a person after that ending date.
In order to pay any amount to a terminated employee (to correct errors, for example), the DHR or
president’s office must approve the payment. The Web Advisor import reports and the payroll
calculation reports are maintained as documentation of time worked and payroll payments. Paper
timecards for facilities employees are maintained by the HRA.