Making the payroll internally is not an easy task. And starting to generate it from scratch for the first time can cause many doubts to arise such as:
What steps should I follow to generate a payroll, or how do I ensure that my employees always receive the correct amount of money, even if there are discounts or bonuses to be considered in their salary?
To help you solve these doubts about this process, we would like to share with you the basic aspects that you must take into account in order to generate it correctly.
What is the prenominal?
The pre-payroll is the calculation that you must generate before making the payment of salaries and represents a shared responsibility of the Accounting and Human Resources departments, to ensure that each employee receives the exact remuneration for their work at a given time, whether it is paid weekly, biweekly or monthly.
The pre-payroll process means performing a detailed count of the time that has been worked, as well as the collection of all individual incidents that may have occurred during the pay cycle for each employee.
Based on this data, the final payroll is calculated.
Hence the importance of having total control and efficiency in the registration of each of the incidents related to your collaborators.
What are payroll occurrences?
These are factors that can change from month to month and affect the payment of a worker, so it is important to keep a detailed control of the payroll, as well as to record all the movements of your employees.
Some of the incidences that you should consider in your payroll are:
- Absences: Life is unpredictable and no one knows when someone in the team will need to be absent from work due to force majeure. This is why companies have to show flexibility with their employees and agree on a certain number of absences allowed, either in two weeks or in a month.
But, of course, it is also very important for those involved to report the unforeseen event as soon as possible, in order to avoid any financial penalties if a certain number of absences are accumulated.
- Delays: There are many external factors that can make a person late, however, it is important that employees anticipate the factors that can occur on the commute to work in order to arrive on time to work and avoid incidences of tardiness.
- Omissions of entry and exit: The vast majority of companies keep track of the entry and exit of their employees, so an important part is to keep a correct record of the entries and exits, however, if you forget to do so, it is important to notify it so that it is taken into account at the time of reporting.
- Personal days: These days are managed at the discretion of the organization, for example, in many cases there are companies that work all year round (including holidays) and it is because of this that employees can take one or two paid days a month depending on the labor scheme that is managed internally.
- Disability: Sometimes an employee may become ill or have an accident that prevents him/her from going to the workplace, which is why this type of situation must be notified and the corresponding documents must be presented in accordance with the Mexican Social Security Institute (IMSS), so that the corresponding record is kept and the amounts to be paid can be adjusted.
- Maternity leave: In this case it is important to emphasize that the law allows employees to be absent for 84 days before and after childbirth, in addition to five days of paid leave for new parents.
- Lactation period: This period applies during the six months following childbirth, during which employees are allowed two half-hour breaks per day or a one-hour reduction in their working day.
- Vacations: It should also be taken into account that, upon completing one year within a company, the employee is entitled to enjoy at least 12 days of vacation with pay, which also have an impact within the final payroll calculation.
What are the perceptions in the payroll?
The payments are all the economic income that an employee will receive in his paycheck according to the functions he performs within the company.
These are the same ones that are normally considered at the time of joining the teams and that are taken into account even during the selection process, so they serve as a basis for the pre-payroll.
Some of the perceptions that should be considered are:
- Salary: This is, simply put, the salary, i.e. the amount of money that the employee receives periodically for the work performed.
- Overtime: When the employee must work longer than the time established in his contract, it is necessary to pay in his payroll the time proportional to the normal schedule, however, this must not exceed a certain number of hours.
- Bonuses: Many companies seek to provide incentives to their employees through a bonus with a monetary value, which can be for punctuality, achievement of objectives or seniority, and it is the same organization that establishes the amounts and/or frequency of these bonuses.
As you can see, this is just the starting point as there are many other items that we have to take into account that affect our records and payments at the end of the period.
What are payroll deductions?
Payroll deductions are the part that is deducted from the salary and the employee must always be kept informed of the possible effects on their final salary.
This is the most complex part of the whole process, since, if there is no clear control over each case, it can lead to misunderstandings, complaints or claims by the workforce.
Some of the payroll deductions that are considered by law in companies are:
- INFONAVIT: Each worker has the right to acquire a patrimony, which is why each month a portion is deducted to the savings fund of this company.
- Social Security: Health is one of the most sensitive and important issues in day-to-day life, so each and every one of the employees belonging to a company must be registered with the IMSS, ISSSTE or have access to private health insurance.
- ISR or income tax: Income tax is calculated based on the table published in the Official Gazette of the Federation with respect to the Miscelánea Fiscal for 2022.
- Retirement fund: The Retirement Savings System is an optional deduction, and each employee has the right to decide if he/she wishes to have an account with any of the financial institutions authorized by the Retirement Savings Systems Law.
- Savings account: This benefit is not mandatory, but some companies manage it and it is a part of the employee's salary that is withheld, but is released at the end of each year.
It is important to take into account that most of these deductions are contemplated by law, so it is important to include them in the reports not only for the calculation of daily operations and budget expenditures, but especially in the event of an audit or the departure of an employee making it necessary to consult the records, in order to avoid financial, accounting or legal problems.
How can you automate payroll?
However, as companies grow, employees change positions, responsibilities or working hours, more factors that complicate the process and require greater control must be considered.
Making mistakes in manual processes is inevitable, but it is necessary to be very clear that this type of errors can be very costly, as well as generate annoyances and misunderstandings with employees.
Therefore, betting on technology and digitization of the Human Resources and Payroll department is essential.
Therefore, any growing company is at that key moment to move from Excel to a tool that streamlines the process with a minimum margin of error to avoid extra costs due to failures in the management of something as delicate as payroll can be.
With the support of the right platform, HR and payroll managers can better invest their time in strategic tasks that allow them to focus their energies on the benefit of their business objectives, instead of wasting valuable hours doing manual calculations.
Why should I use HR software to calculate prenomination?
First of all, because with an HR software such as Worky you will be able to report incidents, deductions and perceptions in a more adequate way and you will not have to worry about forgetting to register all the information of each one of your employees.
In addition, Worky is fully integrated with Zentricwhere you will be able to convert your payroll to payroll in seconds.
In addition to obtaining benefits such as:
- Saving time in the calculation, avoiding to a minimum the amount of common and recurring errors such as forgetting to account for overtime, leaves or absences.
- Automation of a process that can be heavy and repetitive every two weeks or every month throughout the year.
- Digitization of your company and especially the human resources department centralizing this important and sensitive information.
- Security that your information is available from the cloud to access it at any time.
The ideal and most recommended is to use a Human Resources software that not only records the incidents and calculates the payroll, but also takes care of other tasks of vital importance to the business such as having a directory and organizational chart of all employees, a calendar to know anniversaries, vacations, time clock and even mobile app to have all this information in the palm of your hand.
Learn about the benefits of digitizing your HR area with Worky and Zentric Schedule a live demo!
