X-ray of a payroll | Economic news – CVBJ

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It is convenient to have under constant control the document which details the pecuniary result of our work

Updated on Monday, December 13, 2021 – 01:01 AM

Supreme blessing at the end of the month, the payroll in which they detail the result of the sweat of our brow is however a great unknown beyond the key figure which usually appears well highlighted in bold: the net which will fatten the account . running. Error that we need to correct. For the data in this document, seemingly obscure if not accorded the privilege of close scrutiny, can be of vital importance.

Imagine: a typographical error adds a zero to an employee’s regular base salary, which is therefore automatically multiplied by 10; the employee detects it and calls the bank, which fixes the problem. amount of honesty? Also, probably, but above all, be careful. The case is real and she tells Ambrosio Recio, director of human resources at Santander Bank in Aragn, Navarre and La Rioja.

“He contacted us quickly to tell us about the error. When we spoke with him he told us that the first thing he looks at his payroll is the amount of personal income tax withholding and that on this occasion he almost had a heart attack, but by analyzing the payroll we understood everything calmly ”. Taxes, for example, and their extremely problematic potential, are hidden on the payroll. Eye.

So let’s apply the microscope. Recio carves the basis of the analysis: “Payroll is the legally valid document that a company’s employees receive and reflects the amount of money they receive in exchange for their work. We go to the minimum content (none of this should be missing in yours, check): “Company identification data, such as company name, registered office and CIF; the worker’s data, such as name, TIN, social security number, place of work and seniority in the company; the settlement period, which is typically a calendar month; Social security data, such as the days of contribution, the contribution base and the quota contributed by the worker and the company; tax data, mainly the monthly remuneration (in cash, but also in kind) and the type of IRPF withholding that corresponds; and the relation of earnings / accumulations, deductions, cash receivable, place of issue and date of payment ”. None of this can be missing: Payroll is a document regulated by law, serious matter.

The only thing that changes is the number of earnings each worker receives and their amount.

Although some concepts seem very technical, it is never a big deal. Thus, Recio explains the difference between accumulations and deductions in a simple way: the former “constitute the total amount invoiced by a worker and the details of the different concepts, both salary and extra-salary”, while the deductions “Consist of all withholding taxes that apply to our payroll, mainly those that come from personal income tax and social contributions”.

In any case, Recio recommends “spending five minutes each month reviewing our payroll. Although this is currently a fully automated process and errors are rare, you can take a quick look at the accruals column and familiarize yourself with the concepts. salaries that we have on a recurring basis ”. In this way, we will be able to “see if a new concept appears or disappears, because there may be adjustments derived from a change in remuneration policy or a legal change that we were not aware of”.

Nor should we stop looking at “the type of deduction, which can vary depending on the fluctuations in salary that we experience throughout the year”, due to things such as “variable pay or fringe benefits that are granted in the middle of the settlement period “. .

The most common mistakes when reading a payroll usually occur when the accumulations of perceptions are confused, advises Recio, because “on many occasions the base salary has an accumulation of 14 times and the supplements 12 times. “. They also tend to create confusion “adjustments in the type of deduction due to the appearance of extraordinary perceptions, such as a seniority bonus or variable remuneration”.

It is important to remember that, “as the retention rate increases, the fluid that we are going to perceive is less, and that is why confusion arises.” Finally, it can also happen that “the company has not correctly collected the personal data of the employee and that the deductions at source of income tax are not correctly applied”.

If it is not easy to interpret a payroll and to be certain in a short time that it is correctly calculated, Recio recalls that “our labor legislation is very rigorous and does not reduce the difficulty of calculate it ”. That said, it is clear that it would not be practical to go to an expert every month to check that our payroll is properly calculated. This bullet should be reserved for “when there are changes in salary conditions, such as one resulting in a promotion; when temporary contracts are linked which require incessant liquidations, or when one leaves the company and the last pay is the payment, which obliges to regularize many wage collections at a time that is not the ‘usual’.

In these cases, “the people most qualified to be able to properly explain the distribution and calculation of a payroll are those of the Accounting and Administration department”. But if what we are looking for is “to oppose the calculation to an independent expert, it is normal to seek the opinion of a lawyer expert in labor law, since the payroll remains a document regulated by law” .

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