Employees paid in cash
Wherever possible, employees should be paid either by cheque or direct into their bank accounts. There are a number of peculiar control procedures. And it doesn’t matter whether the employees are paid in cash.

• Employees should sign for their wages.
• It doesn't have to be allowed to take the wages of one employee by another.
• The wages should be checked by the employee before the packet is opened. It will be allowed by using
specially designed wage packets.
• The employee making up the pay packets should not be the employee who prepares the payroll.
• Normal minor cash controls should apply.

Controls over cheque payments
• Unused cheques should be held in a safe place.
• The person who prepares cheques should have no amenability over purchase ledger or income ledger.
• When there is an evidence of a properly approved transaction and it is available, only then cheques should be signed. This evidence might be invoices, payroll, petty cashbook and so on.
• Check signatories should be restricted to the minimum practical number.
• At least, only two signatories should be required. But there may be the exceptions. In this case they are cheques of small amount.
• It is banned to sign blank cheques and cheques in favour of the signatory.
• At first the cheques should be crossed and only then signed.
• For obviating their use to support further cheque payments supporting documents should be canceled. And it has to be done as soon as they have been paid.
• The better way is to post cheques immediately. In other way it will be held in a safe place.