A payroll is a payslip in which the company certifies that different amounts of money have been paid that constitute the worker’s salary. Read on, this article describes the importance best payroll software in UAE.
That is, the payroll is a document that certifies that the company has complied with the payment of the remuneration to its employees. The proof must include additional payments and discounts charged by law. The latter refers, for example, to money transferred to a fund (public or private in some countries) for future retirements. The most common salary model consists of three large blocks: title, accruals, and deductions. We will explain each one of them.
In the information age, payroll and human resources software are very important elements in companies, they streamline processes, improve profits, and help the constant growth of production.
The importance of stable payroll software
Salary is very important in the financial accounting of the company for several reasons.
First, the importance of the economy for a company is crucial, because it and the taxes it generates can greatly affect the net income of a company. It is often the subject of numerous laws and regulations so payroll management is necessary.
The motivational method towards workers
In many cases, salary is one of the most effective ways to motivate workers, so companies must pay wages in a timely and accurate manner. It is important that to benefit the recipient and the company itself, all employees receive the correct deductions and deductions on time to ensure that they show the withholdings and deductions in the correct way. This includes the payment of wages, withholdings, compensations, advances, and deductions, hence the importance of correct payroll software as it increases the morale of the workers.
Common payroll procedure
Most organizations have a few basic steps. One of these steps is performed at the end of each pay period and includes preparing a payslip, which should show the names and wages of all workers and their deductions. The information contained in the salary record includes the authorized salary and working hours of each worker obtained from each time card or similar document. After separating the normal (structural) hours from the abnormal (non-structural) hours and applying the appropriate rates for each job category, the total wage earned is obtained.
The accrued value is credited to the source of the withholdings, social security contributions, income tax, and any other deductions (advances) that the worker authorizes to obtain the difference between the total amount accrued and the net amount of the withholdings that must be charged.
The following structure is very common in companies to properly manage their payroll.
The general structure of a payroll software
The first block, the header, must contain the main information. With regard to the company, it is the name or company name, address, and social security number. In the same way, workers must provide their first and last name, social security number, and the three most important key pieces of information:
– Professional category: According to the type of work carried out by their training, for example, professional trainees.
– Position: Instructs the tasks carried out by the company’s staff, for example, a trainee in the marketing area.
– Qualifications in the organization: Determine the influence of additional qualifications, promotions, rewards or severance payments.
The second part of the salary table is the accrual, or the same, the additional payment that workers receive for different concepts. There are two types of accruals: accrued expenses that contribute to social security (a percentage must be converted) and accrued expenses that are excluded from contributions (without discount).
In this sense, it should be noted that the base salary is not necessarily set arbitrarily by the company, but that each professional category has a salary set according to the collective agreement. If the company has a strong union, it can.
So, in that case, what makes one employee’s salary different from another’s salary is the salary supplement. These have different classifications:
– Individuals: They are based on the conditions of the workers. This includes qualifications, special knowledge (language, degree, etc.), and all the knowledge that the company wants to include.
– For work: These are additional payments related to certain expenses (risk, night work, special responsibilities, etc.).
– According to quality/quantity of work: Includes incentives for performance, achievement of goals, punctuality, overtime, etc.
– Periodic maturity of more than one month: This concept includes additional payments and the annual profit of the participating company.
– Objects: All the feelings that workers receive other than money, such as houses, repairs, etc.
The accruals must also include the perception of welfare and the social behavior of the company. These are not part of wages, but contributions to social security. This includes all the assistance that the company provides to the workers (child support, wedding permits, dining room, proof of home purchase, etc.).
In the end, we came to the opinion that social security does not help. The most common are travel allowances, transportation costs, and compensation for transfer to another workplace. All of these are considered non-salary income. Extract our total salary from the previous sum (base salary, various supplements, social behavior of the company, and non-salary concepts). This is shown as “total accumulations”.