If you are wondering what is a payroll ? And what does it consist of? It is likely that you are thinking of starting a company or you are simply part of a payroll and you are curious.
Personnel management is a broad topic within organizations and one of the related elements is payroll. This template where the members of the work team and their remuneration appear, involves many legal, accounting and tax aspects.
do you want to know what is it about? We invite you to continue reading, so that you know the most relevant aspects.
What is a payroll? Explanation
The payroll is made up of a series of accounting documentation. In this template, everything related to the wages and salaries , benefits and deductions of the personnel of a company is recorded.
All organizations regardless of their size are required by law to make accounting records. In these, the liabilities and expenses for the remuneration of the workforce must be entered.
In general, a payroll is a process that is carried out continuously in companies . For this reason, there must be a department where, in an organized manner, all payroll tasks are carried out by professionals. All this is done in the established time so that workers can collect their remuneration on the corresponding day.
It should be noted that as a worker you have the right toknow your salary , the deductions and withholdings that are made, such as social security. Likewise, the salary and non-salary perceptions that you receive. Also, an official document known as a pay stub that justifies that your salary has been paid to you.
What are the main parts of payroll?
The payroll is made up of several parts, including the following:
The payroll must include by law a heading that identifies the company where you work and your data as an employee . The data of the company that will be in the header are the Tax Identification Code and the registration number with Social Security.
Similarly, the worker data that is included in the header of a payroll are:
- Names and surnames.
- DNI / NIE.
- Social Security number.
- Professional category of your job.
- Quotation group.
- Seniority date.
This information is relevant, because when an employee has been working in the organization for many years, they have held different positions. However, his first position is detailed in the contract, so it is a way of knowing the position he occupies.
It is the date that is placed on the payroll indicating the beginning and end of the period to be paid. This would be the days, month and year worked. In addition, the way to place it will depend on how the accounting is carried out in the company.
It is the payment you receive for providing your labor services to the organization. In addition, according to the collective agreement of the company, you can receive non-salary remuneration, which are complements and bonuses.
These supplements and bonuses are known as work allowances that are paid under the concepts of mobilization expenses to fulfill the job, such as: food, transportation, accommodation. They are established in the workers' statute.
Withholdings and deductions
The deductions are established by law and are the discounts made from the total amount received by employees. Generally, the basic deductions are Social Security contributions and income tax withholdings. These are paid by the employer before the social security and the Tax Agency.
In addition to the basic legal deductions, the employer can make other deductions, such as: the contributions for a pension plan that the company has.
Finally, the employer must deliver their payroll to their employees on paper or digitally . This document is often an essential requirement when applying for a personal loan online .