What is Payroll & How to Manage it

Payroll refers to the money that goes to employees. For example: in a full-service business such as a grocery store you pay every employee, and you pay on your behalf, this money is called customer salary. This is what a store clerk will tell you: “We paid my salary” and so on.

This was so during my time as an employee. This is what we want to explain to an employee. A store employee works at the store in order to earn a salary.

The business owner may hire employees. And a store clerk and a worker get paid by the company’s income. But what really goes on behind the scenes is called Employee Payroll.

What is Payroll and used for?

If you work in the Human Resources department of your company, surely you know what payroll is, but it is always good to refresh the concepts.

The payroll is a document that the company gives each month to its workers and it specifies the salary to collect. However, payroll goes much further, it is an invoice that reflects the relationship that exists between the company and the employee. In addition, we find very important data, such as income tax withholding.

In those cases in which we are a company or a freelancer with workers, we must take special care with the creation of payroll and know all the legal aspects.

How to manage payroll effectively?

In a company, the most common when creating payroll from the administration or Human Resources is through two ways, with an Excel sheet or with an employee portal to keep payroll of employees.

Next, we will tell you the two possibilities you have to create the payroll of your employees, in addition to the pros and cons that you can find:

Excel

Surely we all have the Office package installed and use it on numerous occasions, so there is no extra cost for making payroll. However, being a very manual and laborious job, we can spend several hours managing the payroll incidents of all our workers.

These are the disadvantages to consider:

Low security: although it is true that we can create a password to access an Excel sheet, we cannot be certain who accesses it.

Also, if we lose an Excel or delete it by mistake, we will have to recreate everything from scratch.

Differences in work methodologies: either due to staff turnover or because they have not been properly trained, on some occasions the files may show differences between them. This is because a fixed work model has not been followed and resolving small differences can cost the company a significant amount of hours.

Lack of data analysis: as we have seen in the previous point, if we do not have an imposed methodology, it will be difficult to analyze data, draw conclusions or create reports.

Do you prefer to continue creating your payroll with Excel?

Download the standard payroll template in Excel with all the formulas to calculate the base salary, make the contribution base, and the personal income tax deduction.

Payroll software

Did you know that you could save between 5 and 6 hours a week by using a payroll system? Begin to be more productive by investing your time in tasks that add more value to the company and, when it comes to making payroll, streamline the entire process thanks to digitization.

After looking at all the downsides of using an Excel template, we want to show you why you should choose to use an integrated payroll management system. The effective usage is the access to my pay stubs online.

Guaranteed security: with Human Resources software that allows us to create and manage payroll, we can be sure who accesses the information, since we will be the ones who allow access to people.

Convenience: having the same program from which to manage all the payroll of your employees will be much easier than handling different Excel sheets.

Data protection: your duty from the Human Resources department is to ensure that the privacy of your workers’ data is respected.

In addition, you must also be up to date on all legal issues that concern your employees. Therefore, payroll software can be very useful because it follows the GDPR (General Data Protection Regulation).

Visibility and access to information: employees will be able to consult their payroll, as well as their documentation, at any time in a secure environment.

Cost savings: if you calculate the time it takes to create payroll and send it to each worker or deliver it by hand, as happens in some companies, you can cause those hours to generate losses for the company. With an online payroll program, you can improve up to 70% the labor-management of your processes.

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