Payroll is the tool through which a company is in charge of keeping all the records regarding payments (salaries, bonuses) and deductions for the services provided by the employees who work in said organization in an already stipulated period. Payrolls are of great importance for these financial institutions, since it depends on them to maintain financial control of the assets and liabilities of the companies in addition to controlling the taxes to be paid on them.
This registry has legal validity, since it contains the tax data (name, address, tax number, worker's position, social security number, seniority, etc.) of both the worker and the company's tax data.
To be able to prepare a payroll correctly, the procedure must be followed step by step, in general the steps to follow are very similar if they are compared from one company to another, to start in the payroll the name of all must be reflected and each one of the workers belonging to the company, their payments and their respective deductions. The data that must be included in it must be, the amount of the salarycharged by said employee, the amount of hours he worked, which will be divided into regular hours and overtime after that, the payments must be applied for each hour worked resulting in the accrued payment. The authorized deductions (social security contribution) must be recorded after the amount that was generated, in order to obtain the difference between the accrued and the deductions.
There are different types of payroll, being classified mainly by two factors, the period of time in which they are issued and the type of personnel the organization has.
Depending on the payment period, they can be classified into weekly payrolls, they are issued every 7 days, in order to prepare them it is necessary to take into account the number of weeks that the month will have. Biweekly payrolls, they are issued every fifteen days, they are usually canceled on the 15th and 30th of each month, in Latin America this is one of the most frequent forms of payment to see. Finally, there are the monthly payrolls are those where the worker receives full income for the hours worked every 30 days.
There are two payrolls according to the type of personnel, the executive personnel payrolls, so called because they are reflected in the payments of senior managers, in general, this is usually confidential since the amounts that are handled there are high figures. The second is the general payroll, it is the one where the payments and deductions of the workers and administrative personnel of the companies are found.
