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Though most medium and large companies have implemented HRM systems and sophisticated payroll like the one described in this chapter, many smaller companies still maintain HRM systems and separate payroll that employ many manual procedures. Typical of such small companies is the Kowal Manufacturing Company, which employs about 50 workers and has the subsequent payroll procedures:
The factory supervisor interviews and hires all job applicants. The new employee purpose a W-4 form (Employee's Withholding Exemption Certificate) and provides it to the supervisor. The supervisor writes the hourly rate of pay for the new employee in the corner of the W-4 form and then provides the form to the payroll clerk as notice that a new worker has been hired. The supervisor vocally advises the payroll department of any following pay raises.
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