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How do you control wages?

Review Levels of Compensation. Reduce Employee Turnover. Cross-Train Employees. Trade Time Off for Payroll Expense. Share Jobs Between Employees. Convert Fixed Salaries and Wages Into Commissions or Fees. Reduce Perquisites (Perks) Eliminate Redundancy Between Departments.

What are the internal control objectives of wages and salaries?

Wages control objectives Typical control objectives for wages include the following: To ensure that employees are only paid for work done. To ensure that wages are only paid to valid employees. To ensure that all wages are authorized.

What is the purpose of wages and salaries?

The main objective of wage and salary administration is to establish and maintain an equitable wage and salary system. This is so because only a properly developed compensation system enables an employer to attract, obtain, retain and motivate people of required caliber and qualification in his/her organization.

Why is salary and wages important?

One of the most important aspects of a job for most workers is the wage it pays. Wages allow workers to make a living from their labor. They also provide incentives to be productive and loyal to an employer. In a broader sense, the wages workers earn fuel the economy.

What is the purpose of wage and salary administration?

Wage and Salary Administration. Wage and salary administration is a collection of practices and procedures used for planning and distributing company-wide compensation programs for employees. These practices include employees at all levels and are usually handled by the accounting department of a company.

What is the purpose of salary?

A salary is a form of payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour, or other unit is paid separately, rather than on a periodic basis.

What is better wages or salary?

A wage is paid on an hourly basis. If you work more than a certain number of hours, you get overtime pay. Workers that earn a salary often put in more than 40 hours per week, but get paid no overtime pay. However, salaries can be higher than what hourly workers earn including overtime.

How do you audit salaries and wages?

Verify pay rates. Compare pay rates to time and attendance records. Confirm pay for active employees. Check independent contractors and vendor status. Cross-check payroll reports to the general ledger. Validate bank reconciliation for the payroll account.

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