Perfect Options to Handle the Payroll Services

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Preparing the payroll is one of the constant commitments of a company. In addition to being a legal obligation, this instrument is one of the foundations of a company’s financial management. That’s right, after all, paying employees is often among the biggest costs of a business.

The role of payroll has become even more important. The changes defined by the government aim to streamline accountability for ancillary obligations and also minimize errors and delays in complying with them.

Do you have a clear idea about it? To understand how to avoid common mistakes and achieve excellent management of your payroll, check out the content we have prepared on the subject and opt for the best payroll services in London.

How important is payroll?

As we said at the beginning of the article, payroll is among the biggest costs for a company. When an employee is paid, in addition to the actual payment of salary, there are a number of collateral expenses, including:

  • FGTS payment
  • First salary
  • vacation etc.

All of this is calculated not only on the employee’s base salary, but also on possible overtime, commissions, etc. It is legally valid, including, for proof of income and paid activity. Therefore, the calculation of the payroll needs to be thorough and efficient, avoiding a series of problems.

Other works

It is on the payroll that discounts or deductions related to health insurance plans (health insurance, dental insurance, pharmacy insurance and the like) are recorded. In practice, HR needs to receive this information from partners and suppliers in a timely manner in order to calculate within the correct competence.

In other words, in practice, payroll has a direct impact on at least four sectors, which are:

  • accounting
  • financial
  • Supervisor
  • operational

What do you need to observe?

The company could enter the wage composition data in the month following the provision of the service, if they were not calculated in time for the closing of the month’s payroll.

A common example is overtime: in order not to compromise internal deadlines, the hours worked in a month were calculated after the closing of the month, and counted for payment in the immediately following month. Thus, an employee who performed work overtime in January, for example, would see this reflected in his March paycheck.

But that is no longer possible, as explained. Therefore, the calculation of the payroll must provide for the inclusion of non-periodic events that cause direct effects on the worker’s compensation. That is, if the company closes the sheet in advance, without taking into account the information on the competence in question, it may have to deal with differences in values ​​and fiscal problems.

What are the most common mistakes in payroll management?

Some errors are very common in payroll management and deserve special care. So check out what they are and see how they can affect your business.

Centralization of information

Many companies store payroll information on a computer (usually from HR) or on a local server. The risk of this practice is immeasurable. Imagine losing historical data on the payroll and, worse, the most recent, which will serve as a basis for calculating charges and providing ancillary obligations.