Which of the following is not one of the business functions for the payroll and personnel cycle?

a. Timekeeping and payroll preparation.

b. Reconciliation of payroll account.

c. Payment of payroll.

d. Human resources and employment.

• The answer to this question is b. Reconciliation of payroll account.

The payroll and personnel cycle starts with hiring the employee and ends with payment to an employee (salaries and wages) and government (withheld taxes)

The following activities are included.

• Human resources and employment (hiring).
• Timekeeping and payroll preparation (calculating the taxes as per gross pay).
• Payment of payroll.

Thus, the reconciliation of payroll account is not part of the payroll and personnel cycle. The reconciliation of payroll account includes the following activities:

• Matching the payroll records with the actual payment made to the employee and government.
• Checking the payroll affected accounts to ensure all the entries are posted to the correct account.
• Ensure the payroll expense is correctly allocated to appropriate cost account as salary paid to labor is added to inventory cost.