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What is payroll? Payroll management is not only important, it is mandatory for all companies with employees. It involves the internal organisation of employee remuneration and the taking into account of all the particularities linked to the legislation to be applied.
Payroll management provides a clear, standardised view of the professional relationship between employee and employer. As the saying goes: "All work deserves a wage". The payslip is the document that establishes this exchange. It is an essential part of the administration of every employee in a company. It is drawn up according to a defined period and includes all the compulsory items that must be mentioned.
Accounting and listing
Payroll management is both an administrative management of the people who do work for the company and an accounting solution. Pay is a financial expense that needs to be planned for, taken into account and reported so that the company is clear not only with its employees but also with regard to the law and social legislation. It's not always easy to get to grips with all the figures, which is why it's advisable to call on the skills of a payroll manager or to use payroll management software.
Employee contributions and taxes
When drawing up a payslip, you need to take into account employee contributions and taxes, which are compulsory by law. But you need to be very careful about taking on payroll management yourself, because the regulations and the different rates to be applied are subject to regular changes. It's essential to keep abreast of all the changes, otherwise you run the risk of making fatal mistakes on your payslips.
Taking account of the differences between employees
Payroll management also means gathering all the information inherent in a company's employees. Each person is linked to a specific set of data. These can have an impact on the payslip. This includes, for example, time off work, bonuses and overtime. The employer must keep each change up to date and notify any changes that appear on the payslip. It also takes account of social security contributions, and is just as important for employees to ensure that they can claim all their rights. Payroll management also manages employment contracts, paid leave and individual training entitlements.
If you want to start managing your own payroll, it's best to have a good knowledge of accounting. Otherwise, it's best to call in a professional or use payroll software. Outsourcing payroll management is a good way of avoiding the risk of making mistakes, but it also comes at a cost to the company. So you may want to opt for payroll software instead, so that you are not left alone to deal with the complexities of different legislation and changes in contribution rates. You need to be sure that you can manage all the information and changes on a day-to-day basis so that you don't get into trouble with the law.