What is payroll management?
What is payroll? Payroll management is not only important, it's mandatory for all companies with employees. It involves the internal organization of employee remuneration, taking into account all the particularities of the legislation to be applied.
Materializing the employee-company relationship
Payroll management provides a clear, standardized 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 aspect of the administration of every employee in a company. It is drawn up according to a defined period and includes all the compulsory elements that must be mentioned.
Accounting and listing
Payroll management is both an administrative management of the people who perform work for the company, and an accounting solution. Indeed, wages are a financial expense which must be anticipated, 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. However, you need to be very cautious about taking on payroll management yourself, as there are regular changes both in the regulations and in the different rates to be applied. It's essential to keep abreast of all changes, otherwise you run the risk of making crippling errors on your pay slips.
Taking into account the differences of each employee
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 may influence the pay slip. These include, for example, work stoppages, bonuses and overtime. The employer must keep each modification up to date, and notify any changes that appear on the pay slip. It also takes into account social security contributions, and is just as important for the employee to assert all his rights. Payroll management also handles employment contracts, paid leave and individual training entitlements.
Outsource, use software or do it yourself?
If you want to start managing your own payroll, it's best to have a good knowledge of accounting. If you don't, 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 you're 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 daily basis, so as not to get into trouble with the law.
Article translated from French