Payroll is the tool through which a company is responsible for keeping all records regarding payments (salaries, bonuses) and deductions for the services provided by employees who work in said organization in a stipulated period. Payrolls are of great importance for these financial institutions, since it depends on them to maintain financial control of the assets and liabilities of the companies, in addition to controlling the taxes to be paid on them.

This record has legal validity, since it contains the fiscal data (name, address, fiscal number, worker’s position, social security number, seniority, etc.) of both the worker and the fiscal data of the company.

In order to prepare a payroll correctly, the procedure must be followed step by step, in general, the steps to follow are very similar if they are compared from one company to another, to start on the payroll, everyone’s name must be reflected and each of the workers belonging to the company, their payments and their respective deductions. The data that must be included in it must be, the amount of the salary that said employee receives, the number of hours he worked, which will be divided into regular hours and overtime hours, after which payments must be applied for each hour worked resulting in accrued payment. The authorized deductions (social security contribution) must be registered after the amount that was generated, in order to obtain the difference between the accrued amount and the deductions.

There are different types of payroll, being classified mainly by two factors, the period of time in which they are issued and the type of personnel that the organization has.

According to the payment period, they can be classified into weekly payrolls, they are issued every 7 days, in order to prepare them it is necessary to take into account the number of weeks that the month will have. Bi-weekly payrolls, are issued every fifteen days, they are usually paid on the 15th and 30th of each month, in Latin America this is one of the most frequent forms of payment to see. Finally, there are the monthly payrolls, where the worker receives the full income for the hours worked every 30 days.

There are two payrolls according to the type of personnel, the payrolls of executive personnel, so called because they reflect the payments of senior positions, in general this is usually confidential since the amounts that are handled there are high figures. . The second is the general payroll, it is the one where the payments and deductions of the workers and administrative personnel of the companies are found.