The payroll It is one of the most important tasks in the management of a small, it is important that employees trust that the payment is on a balanced basis and without delays. On the other hand, payroll can affect the company in many aspects, starting with the mood of the worker to the financial stability of the company.
Keeping the payroll is a complex activity, which deserves a basic accounting knowledge and the handling of elements on which labor relations are established. In such a way that its structuring can be adequately fulfilled and it serves as a useful instrument for the organization of human resources and registration of payments, deductions, benefits, etc.
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In addition, it must be clear that this is a matter of care for the company, since as an employer it must comply with certain legal obligations towards the employees, framed in the labor law, so it is recommended that it be supervised by an administrator, accountant or specialist in the area accountant.
In this article you will find:
Definition of company payroll
Payroll is the financial record carried out by the company to carry the salaries of its employees, bonuses and deductions. It is an important part of business accounting which allows keeping the accounts with the employees up to date.
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In accounting terms, the term payroll is used to indicate the amount paid to each employee for the work performed in the company during a determined period.
Payroll is defined as an administrative instrument that allows the payment of wages in an orderly manner, at at the same time provide accounting information for the company and for the entity in charge of regulating relations labor.
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The generation of the same can be weekly (for workers) or biweekly (for employees), in both cases it includes a series of details and procedures that go beyond making the deposit into the worker's account or writing a check to his Name.
When preparing the payroll, it is dealt with the salary of a worker, but also as a very important aspect is works with the expectations, commitment, responsibilities and human resource needs of a business.
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Parts of the payroll
The payroll is made up of three parts:
The accrued
It is the total value of income obtained by an employee in a certain period of time, either week or fortnight. It is composed of the basic salary, overtime, holidays, night surcharges, commissions, Sunday, substitutions, transport assistance, retroactive, marriage premium, child premium, etc. Accruals are paid at the end of the month.
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Deductions
They are those values that are deducted from the worker's payroll. Among these values are the contributions to health and pension that correspond to the employee. Drafts, judicial liens and any other discount authorized by the employee.
Appropriations
They are the values that the company must pay, such as the contribution to health and pension in the percentage that corresponds to it. It includes professional risks, contributions such as compensation funds and the Family Welfare Institute, social benefits, severance pay, interest on severance pay, vacations, etc.
These are paid the first days of the following month, it is necessary for the company to provision itself to have the resources to make these payments.
Social security contribution
It is a fee or amount to be paid, in a percentage established by the regulations applied to the contribution base.
Withholding on personal income tax
It is a withholding percentage that is applied to the gross salary set by the State according to the worker's own circumstances.
Other deductions
Deduction for union dues, bargaining fees, professional training, unemployment.
Characteristics of a company's payroll
- It is very important in the financial accounting of the company.
- It is vital it and the taxes derived from it affect the net income of the company.
- It is the subject of laws and regulations, which regulate its active principle and labor relations.
- Payroll is essential for the well-being of the human resources that make up the company.
- It has motivational power, sometimes, the salary is a very effective method to motivate a worker.
- It must be timely and accurate, it is important that payments are accurate and timely.
How to make a payroll?
1. Necessary information required
At the top should go the information of the company and the complete data of the worker.
- Company data
Name of the same, tax address, CIF and the listing account code.
- Worker data
Name, NIF, social security affiliation number, professional category, contribution group, seniority date.
2. Accruals
- Salary perceptions
- Base salary: Remuneration subject to unit of time worked. It is fixed by collective agreement or by individual contract.
- Salary supplements: Seniority bonus, complement of title, languages or special knowledge, complement for quantity or quality of work, bonus of night work, toxicity or dangerousness bonus, supplement for holidays worked, supplement for function performed, benefits, etc.
- Extraordinary hours
- Additional hours
- Extra bonuses: You pay extra, for example, Christmas.
- Salary in kind: Part of the salary that consists of the endowment of certain products by the company.
- Non-salary perceptions:
- Compensation or supplies: Those expenses that are paid to the employee as a result of his professional activity. Example: transport voucher, purchase of tools and work clothes, travel allowances, etc.
- Social Security benefits and compensation.
- Compensation for transfers to other branches, suspensions or dismissals.
The sum of all these concepts gives the total accrued.
3. Deductions
There are several types of deductions:
- Worker contributions to Social Security contributions and joint collection.
- Personal income tax.
- Advances.
- Value of products received in kind.
- Other deductions: May include loans, union dues, etc.
Adding all these concepts, we have the total of the deductions. The salary received by the worker is the difference between the total earned and the total deductions.
4. Determination of the contribution bases to social security and personal income tax
Regarding the contribution bases, it should be taken into account that social security has tables with established groups of contribution (included in the head of the payroll) and also the minimum and maximum bases corresponding to the different groups.
