What are the two main controls for payroll? Provide an example of each.

Control over payroll is a must to prevent any fraud or unethical activity. This control is internal as the payroll department is responsible for the same. In this regard, there are two types of control for payroll:

i) Control for efficiency

ii) Control to safeguard payroll disbursement

Control for efficiency is done to make the payroll process transparent and accessible. Most of the payroll processing is done through computers. This helps in storing data, printing paychecks, updating records, etc.

This type of control is done to prevent any kind of fraud. Safeguarding disbursement helps in ensuring that payments are being made to a particular and real person and the correct amount and not to any fictitious or other people. Different practices adopted include – using photo IDs, Employee clocks to monitor working hours, etc.