How to calculate payroll? It is very easy to calculate wages for those who have experience with each concept involved. But do you sometimes do well when you know nothing? It may be doubtful whether it does or not. In fact, sometimes computer systems are used, but often checked for errors. And we know that we, like humans, make mistakes.
Therefore, knowing how to calculate salary is something every employee should check. Even as a freelancer, a businessman or businessman. This knowledge will help you if you want to make sure that everything is done correctly.
What is a wage? What are the factors? (payroll)
The first thing you need to know is the salary. It is a document that reflects the monthly salary that an employee receives based on the activities he performs in the company. In addition, it contains contributions to Social Security and related deductions and contributions to personal income tax.
Key elements of wages include:
Company and employee information (adp payroll)
It’s the first thing you’ll see, and you have to make sure everything is in order. Specifically, You will see it in two separated columns. Company data on the left and employee data on the right.
And what information comes up? In the case of a company; its name; Address CIF inventory code; In the case of labour, full name NIF social security number; Category and contributing group (even if it no longer appears in the current category).
Income (adp payroll)
Next thing you will see. “Observing the worker” . If you stop to think about it, You work for a month, so you will only get paid for your work at the end of this month or the beginning of next year. So if you look at it this way, the company has debts. You can also think of it as a salary.
Now here you will see two types: on the one hand; Salary Perception Basic salary (without allowances, awards or bonuses); salary supplements (eg seniority, productivity, night work…); Overtime (may be replaced by paid or paid time off (in this case they are not reflected in the payroll)); Supplemental hours (hours you put in more than part-time). additional pay (one at Christmas and another by collective agreement); Finally, a kind of salary.
On the other hand, we have non-salary views. Bonuses (distance, transportation, allowances…); unemployment childbirth or childbirth; risk during pregnancy Disability… and compensation for relocation and divorce (in this case there may be additional payments for moving to another office or city, or for severance pay, if it is not appropriate to work 33 days a year, or 20 if it is due to a major reason).
Another key factor in calculating wages is deductions. And what exactly are they? I’m talking about Social Security contributions (for common situations, unemployment, vocational training, regular overtime, and forced labor) and income tax deductions. If there are any labor improvements (which will depend on the worker), they are counted here as well as other deductions.
How to calculate wages
It is clear from what we have said before. I can’t give you a step-by-step guide on how to calculate wages because each one is personal. And it depends on the individual situation. the type of contract you have; type salary, income tax deduction; If there is a bonus or bonuses…
So I’ll give you an example so you know how to do it.
Imagine we have. An employee who will start working for a company on a full-time contract. In his contract, it looks like he’s earning 12,900 (for his category) per year. In addition, he has no children. No dependents There are no disabled people. He is a young man looking for a job. no more.
In addition to that, the information You should also know the type of work. (if you are an assistant, administrator, manager, executive…) and any agreements that apply to you and the support team.
With all these data we can complete the first part (ignoring company and worker data); You can start with savings. In this case, The first thing to know about savings is salary trends. This means the monthly salary you receive.
I am told that the annual salary is 12.900 euros. If you divide that amount by 12, you will get your monthly salary. . That means 12.900 / 12 = 1075 euros.
Now we turn to the outstanding bonuses, which are additional payments. For a year or two, the employer knows he can pay for them in any way he wants. Imagine that month after month. In this way, 1075 + 1075 euros gives 2150 euros. If we divide that by 12 months, we get 179.17 (round). This must be added to the monthly basic salary of 1075 euros.
non-salary income (adp payroll)
Next, we have to calculate non-salary income, but this worker just came in, so he won’t have anything.
Labor’s contributions to social security will continue. in other words:
- Basis of common situations. It is obtained from the formula “basic salary + division of additional payments” or equal to 2150 euros.
- Overtime Base: None, so they stay at 0.
- There are no fundamentals of forcing overtime .
- Don’t work twice as much. In this case, Received from contribution base + overtime base + overtime base due to superior force for common situations. If you follow the example, it is 2150 euros.
Now, those are the basics. But we need to calculate the percentage. In this case, the common ones are 4.70%; 2% non-stop overtime and 4.70% rest.
unemployment issue It will be 1.55%. Social Insurance Fund 0; Vocational training 0,10%.
basis for calculating unemployment; Social Insurance Fund and Vocational Training This is the same as the contribution base for occupational accidents and occupational diseases. (adp payroll)
The last thing you need to do is calculate the employee’s personal income tax. That is, calculate the withdrawal amount he will have to pay. As we said before, It will depend on each employee. (especially salary, personal and family situation, contract and duration).
In our example, Because the contract has no termination date (as we understand it to be indefinite); Personal income tax is calculated on the annual salary received. e It must deduct at least 15% as per IRFP table (employee can ask for higher deduction).
In this case the basis for this deduction is basic salary + extra payments, That means 2150 euros.
All that remains is to calculate the total amount of liquid that Ya will receive. i.e. truncated negatives.
In our example: 2150 – Deductions and Social Security Contributions. (adp payroll)
2150 – 101,05 – 34,4 – 2,15 – 322,5 = 1.689,9
Is it clear how the wages are calculated? gusto payroll. What is important for gusto payroll? What is gusto payroll? Do you want to know gusto payroll? We will explain gusto payroll in next articles.