What is Payroll? All about payroll

What is payroll? What role does it play in the business? Does it determine and affect anyone but us? All the above questions will be answered through the article below.

1. What is payroll?

Payroll translated in the true sense of Vietnamese, it is payroll. The payroll is what companies will summarize at the end of the month to distribute to employees. In the company, there will usually be a department that specializes in Payroll. They must calculate in detail down to every dollar clearly about the contribution in the city of each employee as well as the reasonable salary for each individual and will consider additional payments (if any).

After completing the above calculation and consideration, the companies will gather into a list and submit to the management board for approval. If the leader agrees, the company will deduct the same amount to pay each employee in the company, each employee will receive a salary according to the specified list. When you look at the payroll, you will see the amount of money the company has spent to pay employees within the past month, along with a list of employees who received money and a record of wages, fines, bonuses, taxes, deduct…

2. Payroll - an effective payroll management solution for businesses

Save time

Your company will not have too much trouble and lose time for items that do not bring revenue to the business such as salary calculation, tax calculation ... because the use of payroll service has helped save working time much more. much.

Cost optimization

The fact that the company does not need to organize a whole human resources department on the payroll department or invest in computer software has helped the company reduce a large amount of costs for aggregating and creating payroll for employees. already.

Accuracy Guaranteed

Thanks to always complying with and regularly updating the provisions of the Labor Law from Payroll service providers, the salary spreadsheets always ensure the highest possible accuracy.

Related: Top reasons why businesses should hire an outside payroll service

3. The basis for building accurate payroll

Based on salary regulations

Salary regulation is a document created by an enterprise for the purpose of regulating issues related to wages and other payables.

Salary regulations usually include: Regulations on main salary, probationary salary, package salary,... allowances and allowances, salary calculation and payment methods, bonus regime, procedures and salary review regime. …

According to the minimum wage

Below are the regional minimum wages detailed in Decree 90/2019/ND-CP, effective from January 1, 2021:

- The level of 4.68 million VND/month is applied to enterprises operating in the area of ​​region I.

- The level of 4.16 million VND/month is applied to enterprises operating in the area of ​​Region II.

- The level of 3.63 million VND/month is applied to enterprises operating in the area of ​​Region III.

- The level of 3.25 million VND/month is applied to enterprises operating in the area of ​​Region IV.

Average salary in the market

In addition to basing on the regional minimum wage, businesses also often rely on capacity, work experience and average salary in the market with equivalent positions to negotiate the actual salary with employees.

Regulations on deductions according to salary

Regulations on deductions according to salary include: union dues, various types of social insurance, health insurance, etc.

- Employees will often have to deduct 10.5% of their salary to pay the state.

- Enterprises or employers are responsible for deducting 23.5% of total salary costs to the state.

Timesheet for monthly salary calculation

Employee time sheet is a mandatory condition to build monthly Payroll for employees.

Above is all detailed information about Payroll as well as its uses and bases. If your business is having difficulty in building Payroll, please quickly contact YNN GLOBAL to receive the most enthusiastic help from experts in this field.