Module 3 – Payroll best practices

Beyond regular recordkeeping and payroll processing, employers should implement controls like:

• Separation of payroll duties between processing payroll and reconciling bank statements.
• Mandatory vacations for payroll staff to prevent fraud or errors from going unnoticed.
• Quarterly or annual payroll audits by an independent accountant.
• Budgeting appropriately for payroll costs like salaries, benefits, and taxes paid.
• Updating payroll in a timely manner when employment statuses or pay rates change.
• Providing payroll training for all staff involved in processing or managerial oversight.

This helps minimize compliance risk, pay employees accurately and protect the organization’s financial resources. Regular reviews identify needed improvements.