codes. The invoice and other supporting documents then are forwarded to the Director for payment approval. The Director's initials on the invoice initiate the cash disbursement/check preparation process. See Chapter XVI for a detailed discussion of cash disbursement procedures. XXII. ACCOUNTING FOR PAYROLL AND PAYROLL TAXES Personnel is the most costly element in most AAA budgets (with the exception of contracts and subgrants in some AAAs). Because it is so important, AAA's should maintain systems and procedures to ensure effective personnel management and efficient processing of payroll transactions. This Chapter presents the personnel and payroll practices that are essential to an operational accounting system. Specifically, this Chapter reviews (1) personnel records, (2) payroll preparation, (3) alternative payroll systems, and (4) accounting for payroll taxes and other withholdings. 1. PERSONNEL RECORDS Proper execution and auditing of payroll depend upon personnel records that include up-to-date position descriptions, employment authorizations, transfer of position forms, employee termination forms, and time sheets. Up-to-date position descriptions are required for paid personnel and for volunteers the AAA claims as in-kind contributions as part of the grant match. Position descriptions should recite minimum employee responsibilities, and describe the relationship between the employee and supervisors, peers, and subordinates. Such descriptions protect both the employer and employee and should be updated at least annually. Notices of employment authorization should be prepared whenever a position is created or filled (see Exhibit XXII-1). This form authorizes adding an employee to the payroll and provides salary level, social security number, number of dependents, and tax withholding information. It should be approved by the Director (or Board member, if required). One copy should be filed in the permanent personnel file and another forwarded to the payroll department or payroll clerk. Information on this form should be kept up to date. A transfer of position form is prepared when an employee is shifted from one position to another or when pay status changes. It should contain the employee's name, position, and salary history and should be approved by the employee's supervisor or the Director. One copy is filed in the employee's permanent personnel file and another forwarded to the accounting department. Exhibit XXII-2 shows a sample form. An employee termination form (see Exhibit XX II-2) is prepared whenever an employee is either temporarily or permanently separated from employment. It should state the reason for separation and the last date of employment. If |