Pay-Roll or Wages Sheet: We have so long discussed the various methods of remuneration including the ince ntive schemes.

This will not help us to know how to prepare the pay roll or wage s sheet showing how much wages each worker in entitled to get. Let us have some idea about this aspect of labour remuneration. Organization for preparing the pay-roll or wages sheet: There should be a separate department called pay-roll department for preparing t he pay-roll to help controlling labour cost and accounting for labour cost. Pay-roll department will do the following: a) Prepare the pay-roll or wages sheet for each department separately. b) Maintain for each worker a permanent pay-roll record. c) Furnish all necessary information to the costing department. d) Provide internal check on preparation of pay-roll and payment of wages. e) Calculate the wages on the basis of time or on the basis of output as th e case may be. Preparation of pay-roll: Pay roll is prepared weekly, fortnightly or monthly for each department separately. Wages for each worker is calculated as per his time card, if he is paid on the basis of time, or as per his piece work card, if he is paid on the basis of resu lt. Wages on the basis of time is to be analysis in to Wages for normal hours worker Wages for overtime hours workers and Wages for overtime premium hours Because, normally wages for normal hours and that for overtime hours are treated as direct wage and that for overtime premium hours is treated as overhead. From the gross wages calculated above, deductions are to be made under different heads to show the net wages payable. Some of the authorized heads of deductions under the payment of wages Act. are as below: a) House rent and payments for other amenities and services provided b) Advance taken by the workers c) Employees contribution to E.S.I d) Loans from co-operative credit societies e) Income-tax f) Other to be specified. The pay-roll must be prepared without delay in order to facilitate the payment o f wages within the time laid down by the payment of Wages Act. Procedure for payment of wages: After the completion of the preparation of the pay-rolls or wages sheet of all d epartments, pay slips are prepared in detail for each worker. Each worker is giv en his pay slip in advance so that he can check the calculation before the payme nt is received. The pay-rolls are then sending to the cashier who draws money from the bank and arranges payment. Usually, for each worker a packet containing his net wage is p repared and sealed after checking. Disbursement is made in the presence of a res ponsible officer of the department where the worker works, and under the payee s sig nature or thumb impression. If any worker remains absent on the payment date, hi s wages may be paid to a person authorized by him duly. If an absentee does not authorize anybody to receive his wages, the amount shall be kept with the cashie r after due entry in the undisbursed wages book. Possible frauds in respect of payment of wages: The following types of frauds may be committed and hence preventive measures are to be adopted: a) There may be ghost workers in the pay-roll b) The working hours may be stated at a higher figure in the pay-roll than that appeared from the clock card. c) The unit produced may be stated at a higher figure in the pay-roll than the appeared in the piece work card. d) Overtime wages, bonus etc. not due to the worker, may be included. e) Deliberate omission to make authorized deductions etc. When a worker knows that fraud has been committed in his favour, he does not tak

e payment on the payment date, but takes it afterwards so that it cannot be dete cted by others present at the spot. The following steps should be taken to prevent frauds: a) Payment should be made to all workers on the same day in the presence of the respective departmental heads. b) Clock time should be checked with time booked and idle time. c) Rates should be verified from the schedule of rates. d) One person should not be allowed to work out the time from clock card an d prepare the pay-roll. e) Deductions should be verified from the deduction lists. f) All calculations in the pay-roll should be checked by another person. g) Amount equal to the total net wages should be drawn from the bank. h) Payment to outworkers should be made by head office staff.