The payroll It comes from the Latin "numen" which means name, and refers to a list or catalog of names of people or things, it was also determined at the nominal ratio or to the status of individuals who received certain belongings and are made up of a heading, detail and summary.
In this article you will find:
Payroll Basics
The payroll they have different basics, like:
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- Informative data of the company and its employees.
- Benefits and salary perceptions.
- Deductions and withholdings.
- And the net income.
This file is already done, it is only necessary to make the corresponding calculation of the earnings and deductions at the time of making the payment to all the personnel.
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How to make a payroll?
When talking about payroll it is important to take into account the following
Header
Here the information of the company, payment period and date is detailed
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Detail
In this part is the employee's information, in addition to the earnings and deductions that he receives.
Summary
Here all the total earnings and deductions are highlighted in addition to taxes and the net amount to pay
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The concept of payroll can be studied from several approaches since within a company the payroll is the compilation of all financial data of employee salaries, including salaries, bonuses and deductions. From the accounting point of view we can say that the payroll It is the remuneration paid to a service provider for a specified period of time.
Important terms to develop the payroll
Within the concept of payroll we must take into account a series of terms that will help us to develop payroll of our company or undertaking.
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Legal minimum wage
The legal minimum wage It is the salary that every worker is entitled to and it is the minimum that a worker must be paid to guarantee meeting basic needs.
Basic salary
It is the ordinary remuneration that is agreed in a labor contract between the company and an employee, and this salary is used to calculate the settlement already that based on this, the remuneration of benefits, vacations, holidays and hours will be calculated Additional features.
The difference between the minimum wage and the basic wage is that the minimum wage is the least amount of money that you should be paid for the performance of a job or the provision of a service, on the other hand, the basic salary may be higher than the minimum salary settled down.
Total accrued
The total accrued is made up of the total amount paid and paid by the employer to the employee, taking into consideration current legislation and is made up of all the concepts that make up the salary.
Transport allowance
In some countries, this connection is included in the payroll and its purpose is to subsidize the transportation of the employee from home to work and from work to home.
Working day
The concept of the working day o workday It tends to change a bit from country to country, although in general it maintains the same precepts and we can say that it is divided into ordinary working hours and supplementary work.
Ordinary working day
It is the number of working hours agreed by the employer and the employee per day.
Supplementary work
Are the extra hours that exceed the number of hours of work agreed in the ordinary day. Anything that exceeds the maximum hours of the ordinary working day must be paid overtime
To calculate overtime, several key and important factors must be taken into account:
- Night surcharge
It is not considered overtime, but its ordinary working day is in the night shift, it is For this reason, the earned salary is increased by a percentage determined by the laws of each country
In some countries, this percentage is 35% more than the common daytime shift, because the employee would be working special hours.
Overtime within the ordinary working day is calculated by multiplying the amount of money of an ordinary working hour by 25% plus the ordinary working hour
Work settlement
To settle a working day or in other words an ordinary working day, the base salary is divided between thirty days, this means that weekends and holidays are also paid, that is why the work month is made up of thirty days.
To calculate an hour of work we must divide the base salary by 240 hours in the case that your ordinary day is 8 hours a day.
Net to pay
It is the amount of money that must be paid to the employee for a job performed and is composed of the total accrued (base salary, transportation assistance, commissions and bonuses) minus the total deducted (health, pension, collection fund, cooperative), this means that it is the result of all the bonuses except the money discounted for retirement, social security, etc.
Payroll periods
The payroll periods They can be classified by the range of days covered or weekly, biweekly or monthly payment periods, this will depend on what has been stipulated in the employment contract, but once the period has been determined, the payment must be made constantly while the employee
Importance of payroll for a company
The payroll process is essential in any type of company, be it industrial, commercial, of services.
Many times the payroll professional is considered to be a person who must be an expert in electronic information processing systems and will much further, since a payroll not only refers to the administration of the monthly payment to employees but to all types of payments and aspects legal.
It can be summarized that the payroll process has impact on productivity, in the quality and in the profitability of the companies, that is why the payroll professional must be trained and be a a true expert in all that broad legal framework that surrounds the administration of labor relations in the centers of job.
This is why payroll involves two fundamental aspects, everything that has to do with him employee welfare by obtaining the benefits of honest work in a organization and on the other hand the aspect of caring for and protecting productivity and the cost effectiveness of the company by doing the proper exercise by studying its payroll staff.
The payroll process accompanies the staff from the moment of their hiring registering, not only in the company but in all public and private institutions with which the company is related and protects you during your working life by maintaining timely compliance with the administration of benefits until your retirement from the business.
