How do I start my own payroll?

How to make a payroll in word

From an accounting point of view, it represents a liability for the company, since it is represented as a monetary outlay. And, in fact, it is usually one of the most important fixed costs for any firm.

Hence the importance of understanding payroll and how it works. But perhaps this is something that we will not achieve until we see each and every one of the elements that compose them, which we will do in the following section.

This not only saves paper, but also speeds up the process. The employee can access his or her monthly salary much more quickly and easily, and the employer can issue it more quickly.

In this case, and as the main element, we find the base salary. This is fixed by the collective bargaining agreements and the position occupied by the employee in the company. If there is no collective bargaining agreement, the base salary will be the one agreed in the employment contract.

If with the payments we saw all the concepts that add up to the total amount of the payroll, the deductions subtract. That is to say, once we have the gross salary, we subtract the total deductions to obtain the net salary; the amount actually received by the employee.

Example of a biweekly payroll

Knowing how to make a payroll is one of the most important tasks within a company. Avoiding possible errors is fundamental to avoid penalties from the Administration and to keep employees satisfied.

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To create a payroll, the first thing to do is to choose the right salary management system. This means considering factors such as the technical tools to be used or the relationship with the company’s finance, accounting or taxation.

We must also take into account the conditions to avoid conflicts with employees. We must ensure that they understand their payroll and establish mechanisms to resolve any doubts they may have.

This section is where the employee’s gross salary is distributed. Here a series of concepts appear that depend on the collective bargaining agreement to which the company is attached and the individual agreements. The payments are divided into salary and non-wage payments:

This may be one of the most complicated parts of the payroll. It consists of specifying the amounts that will be deducted from the payments or gross salary, thus reflecting the employee’s net salary. The different types of deduction that exist are:

How to make a payroll step by step

For the company it is, together with the receipt of the bank transfer, a proof of payment, since if the worker signs the payroll he/she is acknowledging having received it and being in agreement with the settlement contained in it.

Settlement period. To what period the payroll corresponds from date to date and, at the end, the total of days contributed, important data because the total days for which they contribute for the worker are going to determine, in almost all the cases, the rights that this worker has before the request of benefits to the Social Security and to the SEPEE (unemployment, maternity, retirement, disability, etc).

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Salary payments. These are the economic payments received by the worker (in cash or in kind) as remuneration for his work and for the rest periods computable as work (art. 26 of the Workers’ Statute).

In this case the difference between the agreed salary and that of the Agreement is considered absorbable, which means that the company is not obliged to apply the salary revisions (increases) made by the Collective Bargaining Agreements as long as the salary applied in annual computation is higher than that of the agreement (unless otherwise agreed with the worker).

How to make a 2020 payroll

Go to your Branch and request the account of your choice; as well as the “DOMICILIATION OF YOUR PAYROLL in this account”. Don’t forget to bring the following requirements: valid official identification with photograph (passport, voter’s credential, professional card, IMSS or ISSSTE credential), proof of address and the opening amount of the selected account. For more information on fees and commissions, please refer to the Fees and Commissions section.

We are at your service at our offices at Lago Alberto 320 (entrance on Mariano Escobedo 303), colonia Anáhuac, postal code 11320, alcaldía Miguel Hidalgo, Mexico City. Business Center, first floor, Monday to Friday from 09:00 to 14:00 hours.

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