Internal Control Questionnaires and Verification Procedures

Payroll

Is the payroll department separate from the personnel department?
Are signed authorizations on file for all payroll deductions including W-4’s for withholding?
Does the board of directors or its designated committee authorize salaries?
Does an authorized officer authorize individual wage rates in writing?
Are vacation and sick leave payments fixed or authorized?
Are payrolls paid from a special bank account or directly credited to the employee’s demand deposit account?
Are time records reviewed and signed by the employee’s supervisor?
Are double checks made of hours, rates, deductions, extensions, and footings?
Are payroll signers independent of the persons approving hours worked and preparation of the payroll?
If a check signing machine is used, are controls over its use adequate (such as a dual control)?
Are payrolls subject to final officer approval?
Are the names of persons leaving employment of the bank reported promptly, in writing, to the payroll department?
Are payroll expense distributions reconciled with the general payroll payment records?