How do I prepare payroll for my employees?

How to make a payroll 2020

A good payroll management and its payment will be a fundamental fact in any company or organization, with the objective of having an exhaustive control of all the collections and payments made. Likewise, employees must receive their salary on the established date and according to the criteria agreed in the labor contract. To help you with this important task, at unComo we explain how to manage payroll.

One of the first variables that you will have to take into account to carry out a good payroll management will be the payment date, that is to say, on what specific date or between what time interval you will have to make the payments. The workers must receive their salary on the agreed date and we cannot be delayed in an unjustified way.

In the same way, it will be necessary to make a forecast of the payments to be made in order to have the necessary liquidity and to be able to manage and make the payment of all the payrolls. To do this, we recommend you consult our article How to manage collections and payments.

When are payrolls prepared?

Remember that pay slips must be delivered to employees every month. It can be done by hand, by mail or by e-mail, and its signature does not imply that the employee agrees, but that he/she can claim if he/she considers that there are missing amounts to be received.

How do I know if my payroll is correctly calculated?

Do you want to know if your payroll is correct? The first thing to do is to look at your employment contract and see which collective bargaining agreement is being applied to you. The legal thing is that the company is applying the collective agreement adjusted to the activity it performs and not to the minimum interprofessional wage.

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When are payrolls sent?

They must be made according to the official model, and are generally delivered every month to the workers. Payrolls must be sent monthly, or otherwise in the periodicity for which the worker is paid (weekly, monthly); and the management of payrolls is key in the management of employees.

Sample payroll pdf

Even the company can include a voluntary improvement for example, then there would be the non-wage concepts such as allowances and mileage, which are concepts that do not contribute to Social Security, as long as their amount does not exceed the amount exempted from contribution.

A) The social security contribution consists of both the workers’ contribution and the employers’ contribution. The worker’s contribution is the one that appears in the payroll, and it is the one that is paid by the worker. For this reason, the company deducts it from the payroll.

It is another discount that the company makes to the worker in payroll, this amount that is retained in payroll to the worker, the company deducts it monthly to the worker and quarterly it pays these amounts to the tax office in the model 111. The percentage of retention will depend on the type of contract and of the personal circumstances of the worker. For it when a worker begins in a company the correct thing is to fill the model 145 and thus not to commit errors with the retention to apply.

How many years to save payroll?

In relation to accounting: Payrolls are proof of expenditure, so they must be kept for six years, according to the Commercial Code.

How can I know if my payroll is correct?

If you are a salaried employee and receive your payroll through a digital tax receipt, you can check your receipts in the SAT portal. Your employer is obligated to issue you a digital receipt of your payroll payment, to consult it you only need your password or e. firma (formerly electronic signature).

How is the accrued salary taken out?

To calculate it, it is only necessary to multiply the number of years that the employee has been with the company by the number of days corresponding to the type of dismissal. In these cases, to estimate the total amount of the accrued salary it is necessary to add the salary payments plus the non-wage payments to calculate the employee’s payroll.

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Payroll of employees of a company

If they do not have the necessary knowledge, there may be errors that can lead to conflicts with workers, and in the worst case, end up in court. That is why it is important to know how to prepare payrolls.

To do this, you need to look at the type of contract (full-time or part-time, permanent or fixed-term), the collective agreement that determines the salary supplements, the management of bonus payments or your professional category and contribution group. Together with your family situation (spouse, children), they determine the deductions to be applied.  Leaves of absence also have an influence on the payroll.

A payroll can be divided into four parts: header, payments, deductions and footer. The first includes the data of the employee and the company, being the same every month, while the accruals refer to the amount that adds up and the deductions to what should be subtracted.

It is the employee’s gross salary, the different salary concepts that the worker generates in the period to be settled, and includes salary and non-wage payments. While the former refer to those received in salary or in kind, and are subject to contributions, the non-wage payments are exempt from contributions. They include indemnities, for example for transfers or dismissals, per diems, mileage, transport bonuses, etc.

How is the base salary of a payroll calculated?

The base salary is the salary agreed between the employee and the company, excluding salary supplements, and must appear in the employment contract. The sum of the base salary and salary supplements can never be less than the minimum interprofessional salary (SMI).

What to do if I don’t receive my pay slips?

If your company does not pay you the respective salaries or you suffer continuous delays in your salary, you can sue the company, either to regularize the situation and collect the amounts owed or to request the termination of the employment relationship.

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What can I do if I do not receive my pay slips?

Faced with this breach, the employee may file a complaint with the labor inspectorate, or request the company to provide him/her with the pay slips.

Payroll

Payrolls are a basic document for any business that employs workers. In previous posts we have already told you how to read and understand your payroll as an employee, today we go to the other side and tell you everything you need to know to create a payroll step by step.

Normally companies have a person or an entire department whose function is exclusively to calculate and make the payroll of all workers, but if you are an entrepreneur who has just started your business and you must do all this work yourself, pay attention to the key concepts that we present below to calculate and create the payroll of your employees.

Although you surely already know what a payroll consists of, it never hurts to review basic concepts. The payroll is the document that employees receive from the company each month and which specifies the salary they have received that month for the work performed or their salary compensation.

But the payroll is much more than that, it is an invoice in which the relationship between company and employee is reflected and in which very important data appear to take into account for the employee as the contribution of the worker to the Social Security or the IRPF retention that is applied to him.