Risks associated with payroll
• Financial loss through invalid or unauthorized payments including rascally ones.
• Low morale because of default to make payments quickly.
• Inexact payments start discontent and potential financial loss through delays or mistakes in payroll records.
• Censure or fines by the tax authorities because of incorrect calculation or payments.

Control of payroll and wages
• Consequently with the organization's procedures and legal requirements, there should be written sanction. It has to authorize employing or discharging any employee.
• A senior member of staff should allow the changes in rates of pay. He doesn't have to be involved with the payroll.
• The same we may say about overtime work that also should be permitted by a senior member of staff who is not involved with the payroll.
• The payroll should be checked and signed by an independent member of staff.
• Two signatories should sign and check the wages cheque against the payroll entry.
• Some form of time recording should be used there where pay relates to hours at work.
• They also should sign and check direct bank transfers. It has to be done regularly against details on personnel files.
• In case an employee has been absent for a significant period, their entitlement to salary should be checked against personnel details.
• Personnel records should be kept for each employee, giving details of engagement, retirement, discharge or resignation, rates of pay, holidays etc with a sample signature of the employee.