We will start our article knowing firstly what payroll is, its importance and its classification, the parts of the payroll.
Know the parts of the payroll
parts of the payroll
There is no specific format when preparing a payroll, companies or institutions design their own formats to describe the criteria that are taken into consideration when preparing them.
It is important to point out that the payroll is a personal document of each worker, which is non-transferable since through this document the employment status of each worker can be verified.
However, there are some criteria that will serve as the basis for preparing the parts of the payroll and these are the following.
Identification of the worker and the company
This aspect must reflect the personal data of each worker such as: name and surname, the number of the identity card. However, there are those who include date of entry or seniority, position held. Likewise, the name of the company or institution and its fiscal registration (Rif) are reflected.
Some companies indicate the fiscal address, as well as some code that identifies the company or institution, Management, Department, Unit, among others.
Coding of the worker
It corresponds specifically to the classification or category that is given to the worker within the payroll, depending on the activities carried out within the company or institution, Managers, Coordinators, Analysts, Administrative, Workers, fixed, in trial period, retired , rest, among others.
In many, this is given by the Collective Bargaining Agreement and in others by the Human Resources area.
Meta of working hours
In this stage, the hours worked by each worker of the company or institution are identified. These hours are obtained through the different controls that are established by the Human Resources area and that are executed by the different dependencies of the institutions.
Overtime is also listed here, the additional work days that are fulfilled when there is a national holiday or an assignment that warrants it. In this aspect, the absences or absences of the workers due to justified reasons or not, which merit the discount in the gross salary, are also taken into consideration.
Salary discounts or deductions and income tax
Here are considered all the deductions that must be applied to the worker on his gross salary, in accordance with the current legislation of each country, these correspond to deductions for Social Security, Hospitalization Insurance, Housing, retirement, among others. and of which the worker, depending on the country where he is, will enjoy the contractual benefits and of which he becomes a creditor for the work provided. It also includes withholdings for taxes or rents.
Salary and remuneration
If we take into account that the salary is the consideration that the worker receives for the services provided in accordance with the provisions of the employment contract, the remuneration is none other than the sum of the salary received plus the benefits of which the worker is entitled. worker, that is, commissions, travel allowances, allowances for positions, as well as other payments that are considered in the employment contract and that are paid to the worker.
Important data
Of course, the place and date of issuance of the payroll, signature and seal of the company or institution and of the worker cannot be missing.
Discounts
There are two types of discounts, the mandatory discounts contemplated in the law that governs the matter and the discounts that must be applied and that are destined to the payment of the Social Security and Social Welfare contributions that the worker enjoys, as well as the payments worker's taxes.
What is Nomina?
It is a document that must be issued in a mandatory manner by any company or organization regardless of its nature, in order to have labor control.
All companies or organizations are required by law to prepare a monthly payment record containing the remuneration of which all their employees or any other person to whom the service is provided is the beneficiary.
The payroll is defined as a document that has legal validity which is received by the workers of a company or organization, which reflects the amount of money that the employee receives in exchange for performing a job.
For others, the payroll is the financial record that a company or organization makes monthly on the salaries of its employees, which includes bonuses and deductions.
From an accounting point of view, the payroll term indicates the amount received by the worker or workers for the work they have done in the company or organization during a certain period of time, normally monthly or quarterly, in order to demonstrate that they have complied with the payment corresponding to the remuneration of its employees.
Once this article has been identified, I invite you to learn a little more about this interesting topic. Registration of General Contract Conditions
Terminology for Payroll Management
Professionals handling payroll should be familiar with a few terms. For this reason, it seems important to us to place them in the article.
Net salary
It is the total money that a worker receives for the work he has been doing before the withholdings and/or contributions established in the employment contract are applied.
Net salary
It is the one corresponding to the salary received by the employee or the worker after the deductions for withholdings and contributions have been applied, that is, it is the money that the worker will receive. It is important to know that the gross salary will always be greater than the net salary.
Payroll Features
- It is a document of legal obligation for any company or organization, the omission would cause serious legal and tax consequences.
- On the other hand, it is important to have a good payroll system in such a way that it guarantees the organization of this type of documents related to work processes.
- This type of calculation must be carried out with a great sense of responsibility since this is part of the functional, operational, accounting and fiscal document of every worker and therefore of the company.
- The salary of the employee is specified in the payroll. Document used to request any benefit to which the worker aspires to acquire goods or services in both public and private institutions.