Payroll management in a company : the essential points

Payroll management in a company consists of organising the payroll of employees and calculating the budgets for employee and employer contributions. How is a company's payroll managed? Here are some key points to know. 

What is payroll management?

Payroll management is about rewarding people for the work they do. That's why it's essential and why you need payroll services hong kong. It is at the heart of human resource management. Payroll management is not only a technical process, but also a complex and particularly sensitive issue. 

Payroll management is the responsibility of the accounting and HR departments. It is formalised by a document called the payslip. This document must be made available to employees and must comply with a number of legal and contractual rules.

Key elements of payroll management

There are certain key elements that help to understand payroll management. These are: withholding tax, social security contributions and the paid leave counter. 

Withholding tax

The net payroll before tax corresponds to the salary received before deduction of income tax. It is therefore not the salary actually received. As a reminder, each benefit statement indicates the change in the employee's remuneration following the abolition of unemployment and health insurance contributions. Indeed, since 1 January 2019, an insert dedicated to the deduction at source appears on the payslip.

Social security contributions

Social security contributions are all social security contributions and levies, as well as certain taxes deducted from wages. Their rates, as well as their nature, must appear on the payslip. In addition, they are partially paid by the employer.

Holiday pay counters

Holiday pay counters are of particular interest to employees, but are not always well understood. These are the paid holidays for the previous year and for the current year. With the right software, the human resources officer will find it very easy to calculate the allowances of each employee.