There are following steps should be taken to prevent error and frauds in case of works wages.
1. Recording of work:
In some factories wages are d according the amount of work done by the worker. In this case card should be granted to the labour and the amount of work should be recorded on the card daily. This card should be signed by the labour and by his in charge of the department. If goods are acquired by the labour then those should be delivered to the storekeeper. He should also sign on the card.
2. Recording of time:
In some factories wages are paid according the working hours. In this case also each labour is given a card. When he enters in the factory, time keeper enters the date and time of entry in the factory on card. When worker leaves the factory the time is again recorded on it. So maintenance in view the total working hours he will be paid. There will be on chance of error.
3. Allocation of duties:
The internal check system should be operative at all stages in employee’s remuneration. The duties of the labours should be clearly defined so that each labour may be held responsible for his job.
4. Wages sheet preparation:
While preparing the wages sheet it should be subdivided to ensure that work is checked properly. Wages sheet should be prepared is such a way that it should provide various information like name, trade, rate of wages, gross wages and net wages etc of the labour. All the officials who render the information should also sign on the wages sheet. It will make the internal control very good or effective.
5. Separate staff for sheet preparation:
Cashier should not prepare the wages sheet. Differentiate staff should prepare the wages sheet and handed over it to the cashier.
6. Exact amount:
According to the wages sheet exact amount of wages sheet should be drawn by the cashier.
7. Payment under proper supervision:
The payment of wages to the worker should be made under the proper supervision of responsible official. So that the chance of misapplication may be reduced.
8. Case of absent workers wages:
Special arrangements should be made for the payment of absent workers. The wages of absent workers in their behalf.
9. Temporary workers payment:
Casual workers payment may not be made until and unless an official certifies that the worker temporarily employed is known to me. It will remove the chance of fictitious payments.
10. Sign on wages sheet:
All the officers should sign and verify the wages sheet that payments are made correct.
11. Record of unpaid wages:
Casher should prepare the list of unpaid remuneration all the concerned officers like foreman and work managers should sign the list.
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