How to Design a Flowchart for Employee Pay
- 1). Create a flowchart for the manual system. You can use an office suite program or neatly draw the chart on blank paper. Create boxes and arrows, which show the sequence of beginning and ending tasks. Include the following: gather time cards from employees/departments, collect employee change forms, verify time card hours (if applicable), manually calculate hours worked, manually determine wages due, manually calculate deductions and manually process paychecks.
- 2). Design a flowchart for the in-house computerized system. Include the following: enter employee payroll changes (such as wage and W-4 adjustments), import timekeeping data into payroll software, investigate missing or erroneous time card scans, make time card adjustments, process payroll via software, print pre-processing report, double-check payroll, make necessary payroll changes, print paychecks and pay stubs, generate direct deposit file, forward deposit file to the bank and verify the receipt of the direct deposit file with the bank.
- 3). Make a flowchart for the external system. Most providers allow you to upload your payroll hours via the Internet, or send them by email or fax. Your flowchart data depend on your transmittal method. You may include the following: review employee hours, gather employee change forms, forward hours and pay adjustments to payroll supplier, receive paychecks/pay stubs from the supplier and double-check payroll received from the supplier. The final step is especially important because the Internal Revenue Service penalizes the employer for payroll tax errors a third party makes.