What is payroll?
The payroll is a detailed compendium that records the amounts corresponding to salaries and deductions of the employees of an entity or company during a specific period of time, usually one month.
Its usefulness lies in the preparation of payments to employees and in the accurate documentation of salaries and tax withholdings.
Consequently, payroll is a fundamental part of an organization's human resources management.
Payroll characteristics
Payroll has a number of attributes that make it unique, such as the frequency in which it is prepared, which is commonly monthly; the inclusion of information about gross salary, tax and social security deductions, benefits and supplementary payments; its relevance for the calculation of payments to workers and the accurate documentation of salaries and tax withholdings; as well as the need to comply with the legal and regulatory requirements established by the tax and labor authorities.
Why is payroll important in a company?
Payroll has a crucial relevance within a company, and this is due to several reasons. First, it is essential to ensure that workers are paid correctly and on time for their work. Payroll also contributes to the preparation of accurate records of salaries and tax withholdings, which is essential for complying with the legal and regulatory requirements established by the tax and labor authorities.
Payroll and Human Resources
Payroll has become an essential tool for the administration of an organization's human resources, since it allows the monitoring and regulation of labor costs, providing valuable information for decision making in the area of remuneration and benefits.
In addition, it can collaborate in the identification of areas in need of improvement in personnel management, thus contributing to the optimization of the company's efficiency and productivity.
What are the elements of the payroll in Mexico?
In Mexico, the payroll is made up of different elements, among which the following stand out:
- Employee's personal data: includes information such as full name, social security number, RFC, date of entry, position, base salary, among others.
- Wages and salaries: refers to the economic amount that the employee receives for his or her work, including base salary, overtime, commissions, bonuses, and other similar concepts.
- Deductions: these are discounts applied to the employee's gross salary, such as income tax, social security contributions, discounts for loans, among others.
- Employer contributions: these are the contributions made by the company to social security institutions, such as IMSS, INFONAVIT, among others.
- Benefits: additional benefits offered to employees, such as Christmas bonus, vacation, vacation premium, food vouchers, and other similar benefits.
- Other payments: includes additional payments that are not contemplated in the regular payments, such as settlement or termination payments.
It is essential to bear in mind that the payroll must comply with the legal and regulatory requirements established by the tax and labor authorities in Mexico.
What are the types of payrolls that exist in Mexico?
In Mexico, there are different types of payroll that companies can use according to their needs and requirements. The following are some of the most common types:
- Regular payroll: refers to the monthly payroll issued to employees for their work during a full month. It includes the concepts of base salary, benefits, deductions and employer contributions.
- Extraordinary payroll: issued when additional payments are made to employees that are not included in the regular payroll, such as bonuses, awards or compensation.
- Settlement payroll: this is issued when an employee terminates his or her employment relationship with the company. It includes the items of liquidation, severance, accrued wages, among others.
- Supplementary payroll: issued to correct errors or adjust payments in the regular payroll, such as overtime or retroactive payments.
- Annual adjustment payroll: issued at the end of the fiscal year to adjust the annual calculation of taxes and benefits.
Payroll classification in Mexico
There are several ways to classify payrolls in Mexico. Some of these forms are:
- According to their periodicity: payrolls may be monthly, biweekly, weekly, daily, etc., depending on the frequency with which they are issued.
- According to their content: payrolls may be ordinary, supplementary, settlement, annual adjustment, etc., depending on the items included in them.
- Depending on the tax regime: payrolls may be for companies under the general regime, companies under the small taxpayer regime, etc., depending on the tax regime to which the company belongs.
- According to the type of worker: payrolls may be for permanent workers, temporary workers, fee-based workers, etc., depending on the type of employment relationship the worker has with the company.
What is an employee payroll template?
A payroll template for employees is a predetermined structure that functions as a guide for preparing the payroll for a company's employees.
This model includes the elements and concepts that must be considered when calculating and preparing the payroll, such as base salary, benefits, deductions, employer contributions, among others.
The company can create its own payroll template for employees or purchase one provided by an external entity, such as a payroll software provider.
This model can be adapted to meet the specific needs of the company and the established legal and regulatory requirements.
The use of an employee payroll template can help companies keep a systematic and accurate record of payments and deductions made, as well as facilitate payroll review and auditing.
In addition, it can help ensure transparency and fairness in the salary treatment of the company's employees.
How is the payroll scheme in Mexico?
In Mexico, the payroll process may vary depending on the type of company, sector and payroll in question, but generally follows an established pattern.
Most companies in Mexico make biweekly payments, i.e., every 15 days.
The minimum wage in Mexico is updated annually and is determined by the federal government and is currently set at Ps.141.70 pesos per day.
Employees are entitled to various labor benefits such as Christmas bonus (which is equivalent to 15 days of salary), vacation (which depends on the length of service), and vacation premium (which is 25% of salary), among others.
On the other hand, companies are required to make deductions such as income taxes and contributions to social security systems, such as IMSS and INFONAVIT.
In addition, companies in Mexico must make contributions to the corresponding social security systems (IMSS and INFONAVIT) to guarantee the social protection of their employees.
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