System Documentation—Payroll The following describes the payroll procedures for a hypothetical company.

Every Thursday, the timekeeping clerk sends employee time cards to the payroll department for processing. Based on the hours worked reflected on the time cards, the employee pay rate and withholding information in the employee file, and the tax rate reference file, the payroll clerk calculates gross pay, withholdings, and net pay for each employee. The clerk then prepares paychecks for each employee, files copies of the paychecks in the payroll department, and posts the earnings to the employee records. Finally, the clerk prepares a payroll summary and sends it and the paychecks to the cash disbursements (CD)

department.

The CD clerk reconciles the payroll summary with the paychecks and records the transaction in the cash disbursements journal. The clerk then files the payroll summary and sends the paychecks to the treasurer for signing.

The signed checks are then sent to the paymaster, who distributes them to the employees on Friday morning.

Required:

Prepare a data flow diagram and a flowchart of the payroll procedures previously described.