Deviance reports The control reports that we design for our clients include deviance reports, including: checking the payment of the same salary component twice, payment of salary components that contradict one another, payment of salaries to fictitious employees, granting salary raises at unreasonable intervals, payment of a salary component in an amount that is unreasonable, etc.
- On the basis of our obtaining an understanding of the clients' needs, we perform a gap analysis between the required controls and the existing controls. The client selects which control reports it needs out of all of the proposed reports.
- We will map the control reports selected by the client and define them using the application generator of the client's service bureau.
- We will run the reports in the initial period in order to ensure that there are no false deviances. If necessary, the definition of the reports will be improved.
- We will deliver a set of reports to the client for its use on a monthly basis.
Checking the salaries of employees of subcontractors
The department provides payroll examination services to dozens of clients, pursuant to the Law for the Enhanced Enforcement of Labor Laws. Among our clients are: Bank Hapoalim, Clalit Health Services, Maccabi, Ariel Properties, Shufersal, Mekorot, Tower Semiconductor, the Azrieli Group, and others. As part of this work, we check to see if the payment of salaries to employees of subcontractors of our clients is done according to the law. In the event of violations of the law, we ensure that the subcontractors correct the violation.
In addition, we consult for our clients on a regular basis in the area of the salaries of employees of subcontractors, including various services that are performed gratis, such as:
- Assistance in determining the hourly payment rate
- Implementation of the provisions of various expansion orders
- Providing solutions to specific issues that are relevant to this area
Checking salary components in government companies
Periodically, deviances are found by the media in the payment of salaries at government companies. Quite a few companies are interested in knowing in advance that there are no deviances in their companies, which might portray the company in a negative light. We have expertise in carrying out such examinations. We assist government companies in ensuring that salary payments are made in accordance with the directives of the Government Companies Authority and/or the Office of the Accountant General. At the conclusion of the examination, we recommend to the client how to remedy the deviances at minimal cost.
Compiling payroll processes
The process of proper payroll processing, including appropriate controls, separation of duties, etc. guarantees the payment of a correct payroll and a reduction in the exposure to embezzlement. The department has amassed extensive experience in compiling effective payroll processes for various companies, commencing with the absorption of the employee into the system, through the issuance of pay slips, while designing the controls that accompany the payroll process, until the actual payment of the salary.
As part of this service, we take into consideration the size of the company, the organizational structure, the existing information systems of the organization, the deviation of the existing agreements, etc. The final output of this service is a proper payroll process, tailored to the specific needs of the company.
Remuneration of senior employees
Amendment 20 of the Companies Law sets out the principles to be implemented in respect of a remuneration program for senior employees. We assist companies in setting a remuneration policy in respect of senior officers in accordance with the principles set out in the amendment. The work is performed in stages, in complete coordination with the company. The final output is a policy document that is ready for the approval of the remuneration committee, including benchmarking to similar companies.
Examining social deductions
Commencing from 2008, the law requires all employers to provide pension insurance to their employees, at rates set out in the law.
Failure to withhold such deductions as set out in the law is a violation of the law for which senior officers of the company hold personal responsibility. As part of our examination, we will confirm the fairness of the social deductions and recommend to the client as to how to improve the process so as to significantly reduce the exposure of the company and its senior officers.