Question

It would be appropriate for the payroll department to be responsible for which of the following functions?

1) Approval of employee time records
2) Maintain records of employment, firings, and raises
3) Temporary retention of unclaimed employee paychecks
4) Preparation of governmental reports as to employees' earnings and withholding taxes

Answer 1

The payroll department is responsible for approving employee time records, maintaining employment records, temporarily retaining unclaimed paychecks, and preparing governmental reports on earnings and taxes.

Step-by-step explanation:

It is appropriate for the payroll department to be responsible for several functions related to employee compensation and tax compliance. The duties may include approval of employee time records to ensure that hours worked are accurately recorded for payroll processing. They also maintain records of employment, which encompasses hiring, firing, promotions, and salary adjustments. The payroll department might hold onto unclaimed employee paychecks for a temporary period as per the company policies or legal requirements. Furthermore, they are responsible for the preparation of governmental reports concerning employees' earnings and withholding taxes, which are necessary to comply with federal, state, and local tax laws.