[ERP] Human Resouce & Payroll

 

Introduction

The life cycle of (HRM)/payroll is a recurring set of business activities and related data processing operations associated with effectively managing employee resources. 

The more important tasks include the following:

1. Recruiting and hiring new employees

2. Training

3. Job assignment

4. Compensation (payroll)

5. Performance evaluation

6. Discharge of employees due to voluntary or involuntary termination

The Payroll system, which is under the accounting department’s control, produces employee paychecks and maintains the related records as required by government regulations.

The HRM system, which the human resources department runs, maintains files on employee job history, skills, and benefits; these files are updated weekly.

Cycle Information System

To effectively utilize the organization’s employees, the HRM/payroll system must collect and store the information managers need to answer the following kinds of questions:

• How many employees does the organization need to accomplish its strategic plans?

• Which employees possess specific skills?

• Which skills are in short supply? Which skills are in oversupply?

• How effective are current training programs in maintaining and improving employee skill levels?

• Is overall performance improving or declining?

• Are there problems with turnover, tardiness, or absenteeism?

Overview HRM/Payroll process and Information needs

Payroll context diagram

Data flow diagram

REPORT NAME	CONTENTS	PURPOSE
Cumulative earnings register	Cumulative year-to-date gross pay, net pay, and deductions for each employee  Used for employee information and annual payroll reports	Workforce Inventory List of employees by department Used in preparing labor-related reports for government agencies
Position control report	List of each authorized position, job qualifications, budgeted salary, and position status (filled or vacant)	Used in planning future workforce needs
Skills inventory report	List of employees and current skills	Useful in planning future workforce needs and training programs
Form 941	Employer’s quarterly federal tax return (showing all wages subject to tax and amounts withheld for income tax and FICA)	Filed quarterly to reconcile monthly tax payments with total tax liability for the quarter
Form W-2	Report of wages and withholdings for each employee	Sent to each employee for use in preparing in dividual tax returns; due by January 31
Form W-3	Summary of all W-2 forms	Sent to the federal government along with a copy of all W-2 forms; due by February 28
Form 1099-Misc	Report of income paid to independent contractors	Sent to recipients of income for use in filing their income tax returns; due by January 31
401(k) Retirement
Various other reports to government agencies	Data on compliance with various regulatory provisions, state and local tax reports, etc.	To document compliance with applicable regulations