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ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions

Zentra Ltd's HR department notifies payroll that an employee left on 10 March, but the notification is not processed until after the March payroll run. What is the most likely consequence?

The leaver is likely to be overpaid. Because payroll was not told in time, salary continues to be paid for days not worked, creating an error and a possible recovery problem. This shows why timely HR-to-payroll communication is an essential control.

  1. AThe leaver is overpaid, creating a payroll error and a possible recovery issueCorrect
  2. BThe employee's pension scheme is automatically closed
  3. CThe employer's tax liability is reduced for the month
  4. DThe leaver's gross pay is understated

Explanation

If the leaver stays on the payroll after leaving, they may be paid for a period they did not work, so the entity has overpaid and must try to recover the money. This shows why timely communication between HR and payroll matters. It does not reduce liabilities and does not understate gross pay.

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