27 September 2021

Recommendations for payroll management in your company

We understand by payroll management at the process by which workers are paid their wages by the company that employs them.. Although this is a simple process, it must take into account multiple and diverse aspects that require exhaustive control (social security, tax obligations, etc.).

La payroll management within a company, whether large or small, it is therefore an activity that must be carried out rigorously and in detail and to which the staff assigned to it routinely devote their time. a lot of time and effort. It is for this reason that today we can find on the market various labour management and payroll software programs that help in the daily work of all departments involved in this task and that can achieve savings of up to a total of 450 working hours per year in payroll management, including all the forms of calculation they present, such as full and part-time, payroll with flexible remuneration, back pay, severance payments, bonuses, commissions, etc.

Thanks to these software packages, many of which specialise in the payroll management for SMEs, In many small and medium-sized enterprises, the complex and time-consuming spreadsheets They have always been used to and have always required a lot of time and effort. Also, a major problem with spreadsheets in payroll management is that it is It is very easy to make any kind of human error, causing multiple problems resulting from not managing employee data and payroll correctly.

The labour management and payroll software for SMEs have also succeeded in solving another fundamental problem The use of spreadsheets: difficult accessibility. Most of the time, several people are in charge of handling the data of the employees of a company, and it is necessary that the information is available to all of them at all times. Even the use of several spreadsheets can lead to significant data analysis problems, Different documents may contain different information. With specialised software the payroll will be fully accessible to anyone with permissions at any time and in any location.

In view of the above, we can say that proper payroll management in companies esun essential and very sensitive aspect for them and their employees.. It is therefore more than necessary to take care of their management through the appropriate use of various payroll management tools that will allow us to save both time and money, We can also provide employees with accurate payroll information quickly and easily when they need it. At the same time, we can provide accurate payroll information to employees quickly and easily when they need it, which will help employees to be much more satisfied within the organisation.

Thanks to the ongoing digitisation of tasks and processes that SMEs have undergone in recent years, they can avail themselves of a number of different specialised software to optimise payroll management and automate all payroll processes. The most time-consuming tasks for those responsible for this task.

Payroll management involves processing employee salaries, including calculating wages, deducting taxes and contributions, and issuing payments. It also covers managing employee records, ensuring compliance with labour laws and tax regulations, and handling any related queries or issues.

As we pointed out at the beginning of this article, Payroll management is the process by which a company pays its employees.. This task is usually entrusted, regardless of the size of the company, to the Finance Department, which will work closely with the Human Resources Department to carry out optimal payroll management and everything related to it, such as for example holiday management, overtime pay, social benefits such as restaurant tickets.

La Payroll management is a process that takes place on a personal and individual basis with each employee. This is because, in each particular case, each of the workers presents different work situations and, therefore, it is necessary to prepare each payroll document individually.

It is worth highlighting the case of the Flexible remuneration management in payroll, on which different concepts related to worker payments always appear. On many occasions, one of the options available to companies to improve employees' purchasing power without directly increasing their salary is the Flexible remuneration. In these cases, what is done is to convert part of the employee's salary into social benefits that allow them access, for example, to meal vouchers or childcare vouchers. These social benefits are exempt from tax payment and, therefore, although they are part of the employee's payroll, they will not appear on it. The result is that the employee receives a higher remuneration, since they do not lose part of their salary in the form of tax withholdings.

What is electronic payroll and what are its advantages

La electronic payslip, as its name suggests, is An electronic or digital document that is the equivalent of the traditional paper payslip. Therefore, electronic payslips are not printed on paper, but rather the medium used is a digital file that is sent directly to each worker's email. This way, they will always have direct access to their payslip whenever they wish, quickly and easily.

La electronic payslip, which is increasingly common, is obtained from the different software programs we have mentioned previously, designed for this purpose. These tools automate the payroll management process, streamlining and simplifying it.

Although the Electronic payroll they can be found in different formats, most commonly they are one PDF file, with the option to be directly printable should the need arise.

La electronic payslip offers many more advantages than traditional payroll, which is why its use is becoming increasingly common in small, medium, and large companies alike. Let's look at the following some of the most important advantages brought by electronic payroll:

Reduce company processing time and employee query time. This is because it is run from specific payroll management computer programmes that speed up its generation, and when sent to the employee's email, they have quick and direct access to it at any time.
Reduces the physical space of occupation. As it is electronic, it avoids the need for physical storage and dedicating space to it. This represents a significant advancement, as companies are increasingly working with a smaller volume of documentation.
It offers greater accessibility. The electronic payslip is generated in a file by computer software, meaning it is no longer possible to lose it. This increases its accessibility compared to traditional printed payslips. The digital payslip can be consulted at any time, from any place and on any type of electronic device.
Achieve economic savings and sustainability. Your generation does not require the use of paper for support, so a large part of the consumption of this material is avoided, which represents significant savings while also protecting the environment.
It has the same legal validity as traditional payslips. Currently, the electronic payslip has the same validity as the traditional payslip. It is therefore a completely legal document that can be presented to any institution or organisation that requires it and offers the same validity as its printed paper version.

How to process a payroll

La Preparing a payroll is not a simple task, especially if we take into account the continuous and constant legislative developments which affect its preparation. For this reason, it is so important to rely on software for its generation, which automatically captures all changes and updates in legislation concerning payroll management.

Para saber cómo realizar una nómina de forma correcta será necesario comenzar por gather company information such as the name, NIF, registered office and contribution account code, as well as of each employee, their name, national identity number (DNI), social security number, professional group and contribution group.

After the payroll header The following information must always be included:

The non-wage payments to be reflected in this document.
Compensation for work-related expenses, Social Security benefits, and compensation arising from transfers, dismissals, or suspensions.

Once the accruals (base salary, allowances, overtime, bonuses, additional hours, and benefits in kind) have been listed, you will have to include deductions. Information such as advance payments, income tax and tax on income tax must be recorded:

The company's contribution to Social Security in detail.
Specification of figures relating to the company and those relating to the worker.
To reflect the exact amounts allocated to vocational training, the Wage Guarantee Fund (FOGASA), and unemployment, covering both permanent and temporary contracts, and of course, also the amount dedicated to common contingencies.

Finally, we must not forget to record the value of products received in kind before completing, on the payslip, the determination of the contribution bases in a table where data is filled in regarding concept, base, rate, and company contribution.

The model that dictates how to create a payslip is the one that has been established according to the applicable Collective Agreement, or the one that the company and the workers' representatives have decided to use, always adhering to the law.

Recommendations for payroll management in an SME

There are a number of recommendations for SMEs to keep in mind when managing your payrolls. Here are some of the most important ones:

Decide who will be in charge of payroll.. This task is usually handled by the SME's director. However, this shouldn't be the case if it means they end up neglecting other more important duties. For this reason, one option is to outsource payroll management to an external administrator.
Seek professional advice. It is advisable that we observe how companies similar to ours manage payroll. At the same time, it is very important that we consult with industry professionals who can advise us on the best tools or methods for carrying out this task.
Use an easy and effective model. In addition to the different software programmes, there is the option of using mobile applications. These tools will allow us to manage the payroll for a small company from anywhere and at any time using an iOS or Android device.
Not forgetting important dates. You must take into account the funds available according to the date on which employees receive their salaries and always pay on time.
Ensure that the payroll contains all the necessary information. Very important the first time, as subsequently all data will be included automatically unless there is a change in the information.
Comply with legal obligations. A small or medium-sized enterprise's payroll must comply with current legislation to avoid potential irregularities and associated fines.
Remembering the extra payments. This payment is included in Article 31 of the Workers' Statute and is usually paid in July and December, or it can be prorated monthly.
Divide the payrolls by sections. Splitting the payrolls according to the departments where the employees work will allow us to be much more organised.
Promote payroll direct debits. It is the simplest way to manage payroll for a small or medium-sized enterprise as it allows for almost the entire process to be automated.

The need for payroll management software

As we have already mentioned, a Payroll management programme is nowadays a indispensable tool for the Finance and Human Resources departments to can optimally manage all processes related to the company's employee payroll.

These departments increasingly need, and to a greater extent, effective payroll solutions that allow them to improve speed and efficiency, and human capital management solutions that help them connect and collaborate with workers, sharing information and supporting company management in decision-making.

The payroll management software stand out for offering a range of common characteristics to all of them:

They offer essential support to senior management.
They help retain talent in the company.
They reduce personnel management costs.
They help to improve the quality of communication and the working climate.

Advantages offered by specific computer programs

The Payroll management software they can be hosted on local servers or in the cloud, ensuring information security while saving unnecessary time and costs. Simultaneously, it achieves total efficiency in controlling and administering payroll and social security. These tools are therefore designed so that the payroll processes of any company can be managed simply, securely, and accurately.

The use of these software programmes offers us a wide range of benefits, Let's see next some of the most significant:

Automation and facilitation in salary calculation, enabling customisation of payment arrangements based on hours worked, whether it's a daily or monthly payment, hours worked by employees on irregular shifts, etc.
They help to realise a quick and efficient management from salary conditions based on the agreement and the concepts established for each case. Thus, the exact amounts are generated automatically according to the information we have provided.
They offer Connection to other tools so that it's simple and convenient to export files and reports and use them to generate detailed spreadsheets.
They provide a considerable time saving by having all the information accessible in one place.
Connection with the RED System, the medium through which companies and the General Social Security Treasury interact for the exchange of information and documents electronically. This guarantees the legislative security of the operations we carry out and facilitates the sending of forms.
They help to reduce to a large extent possible human error since the data that previously had to be calculated manually is now automated.
They help to streamline all processes and a Reduce hiring costs of external management professionals or companies.
Protecting workers' data to comply with data protection law.

We can conclude that a Payroll management programme is a useful tool for any company whatever their size and activity, as they allow tasks to be optimised, save time and money, and increase business productivity.

What should a comprehensive workforce management tool be like?

A comprehensive labour and payroll management tool should allow for the streamlining and simplification of most internal processes that companies have to carry out on a day-to-day basis.

There are different tools on the market, scalable and connected, that allow you to manage all labour processes efficiently, automating them and facilitating the retrieval of the financial and employment information needed, thus helping to save time and money.

Thanks to this type of comprehensive tool, the company will be able to:

Ensure payroll calculations with a solution that is always up-to-date with the latest legal changes.
Easily manage employees and their activity to ensure control of work processes.
Obtain real-time information to analyse and direct workforce management, helping to make better business decisions.

This type of payroll management tools have at their disposal at the same time a series of modules to build a bespoke solution to the needs of each company, resulting in a complete product for the administration, tracking, and subsequent analysis of personnel.

Discover all the possibilities that Edenred offers SMEs for managing their employees' payroll. Request information with no obligation.