Updated at 08/09/2022 - 05:24 pm
The article provides complete and detailed instructions on how to organize a Payroll Management System (also known as a salary system) in an enterprise.
Understanding Payroll Management System #
Salary management system, Salary system, or Salary system, is a system consisting of components that are organized in a strict manner to implement the entire salary policy applicable to the staff. personnel.
Directors and business owners have the full right to choose how to manage their company's salary, but no matter which way is done, the salary system of the enterprise needs to ensure that it meets 2 contents:
- Must be effective.
- Must comply with relevant legal provisions.
An effective salary system is an appropriate and good enough system to help enterprises successfully carry out the work of building human resources for their production and business activities. Therefore, when building a salary system, it is necessary to meet 4 basic requirements or:
- Salary must be competitive in terms of market prices.
- Salary must be commensurate with the capacity and contribution of each person, ensuring fairness in the enterprise.
- Salary structure must be flexible, must have hardware and software to be able to adjust up and down when necessary.
- The way to calculate salary must be simple, easy to understand, clear so that everyone can understand and check their salary.
The salary system of the enterprise must ensure that, when implemented, it meets the following legal requirements:
- Regulations on labor and salary in the Labor Code;
- Regulations on compulsory insurance (social insurance, health insurance, unemployment insurance) in the Law on Social Insurance, Law on Health Insurance, Law on Employment;
- In order to be able to account wages into the enterprise's expenses and present them in the financial statements, it must comply with the Law on Accounting and the Law on Corporate Income Tax;
- Wages are subject to personal income tax, so they are subject to the Personal Income Tax Law.
The process of building and implementing a payroll management system #
The process of building and implementing a salary management system includes the following 5 contents:
- Formulate salary payment regulations;
- Building a salary scale (also known as a salary scale);
- Payment of wages;
Salary regulation is a document developed by enterprises on the basis of the provisions of the Labor Code and the Government's Decrees guiding the formulation of salary regulations in enterprises, which is published and applied used in business.
The salary regulation regulates wages, salary-related issues and other payables to employees such as bonuses, allowances, welfare policies, etc. Thereby determining the basis and How to calculate salary for employees working at the enterprise.
Note: The salary payment mechanism or salary policy cannot be fixed, but it needs to be continuously reviewed, evaluated and modified to suit the business situation of the enterprise, changes in labor law and changes in labor law. new request
Salary scale (More precisely, the salary scale system) is a system of salary groups, salary ranges and salary levels designed as a basis for paying wages to employees. Depending on the capacity, job position and complexity of the job, the enterprise will pay the employee salary based on the built salary scale.
The role of the salary scale in the enterprise
Building a salary scale helps businesses ensure fairness in salary payments, helping employees know their actual income and have expectations of striving to achieve higher-paying positions in the salary scale.
The payroll scale also shows the professionalism in the enterprise's labor management system, helping businesses easily plan their salary budget and manage salary costs extremely effectively.
Building a salary scale is the responsibility of the enterprise. When developing the salary scale, the employer must consult the representative organization of the labor collective at the grassroots level and make it public at the employee's workplace before implementation.
Timekeeping is the monitoring of actual working days, leave, leave enjoying social insurance, ... to have a basis for calculating salary, social insurance to pay wages for each person and manage wage labor in the enterprise.
Currently, the forms of attendance are quite diverse. The most commonly used forms of timekeeping today include:
- Time attendance by paper card
- Time attendance by magnetic card
- Face recognition
- Fingerprint time attendance
- Online attendance…
Regardless of the means of timekeeping, all are for the purpose of determining the number of working days in a month according to the labor regulations, the salary of the enterprise and in accordance with the law.
Salary calculation is the calculation of the monthly salary that the employee receives based on all the provisions of the enterprise's salary system.
In order to calculate the salary, the payer needs to collect all the parameters that form the employee's salary. Depending on the salary system of each enterprise, there are different calculation methods.
Salary calculation requires meeting the following requirements:
- Salary calculation must be accurate.
- Salary calculation must be timely and on time.
- The calculation of salary must “Testable” for the purpose of Self-Inspection of the enterprise; Workers check again; Labor, insurance and tax agencies check when inspecting, tax finalizing.
The result of salary payment is Payroll. Due to too many salary parameters, the Payroll is a table with a lot of information, this information is closely linked, related to many branches of law, it is easy to make mistakes, so businesses need pay attention during implementation.
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Salary payment is the payment of money to employees.
Common payment methods:
- Make pay slips to be paid in cash directly to each person.
- Make salary slips and pay in cash and pay for a representative to receive for enterprises with specific team and works.
- Transfer via bank account.
- Authorize salary payment through the salary payment service of the bank where the business opens an account.
Salary payment deadline:
Contrary to the meaning of most businesses, you want to pay whenever you want. In fact, the salary payment time must depend on 2 factors:
- Agreement in the Labor Contract, Salary Regulations.
- The salary payment time is specified in the Labor Code.
FAQ - Common mistakes in payroll management #
Errors in timekeeping, incorrect product volume calculation; mistakes in recording data about personnel such as: failure to timely reflect changes in personnel, incorrect reporting of days off, overtime hours....
- Wrong salary calculation depending on the degree of error and wrong aspect will result in fines, arrears, and inspection of social insurance
- In addition, the wrong calculation of wages causes psychological inhibition for employees.
The time and form of payment shall be mutually agreed upon by the two parties.
For special cases due to natural disaster, fire or other force majeure reasons, in which the enterprise has sought all remedies but cannot pay wages on time as agreed in the labor contract, the enterprise shall be obliged to: service:
- Salary is not paid more than 01 month late;
– Paying the employee an extra amount of money due to late payment of wages, specifically as follows:
- If the time of late payment is less than 15 days, no additional payment is required;
- If the salary payment is delayed for 15 days or more, an additional amount must be paid at least equal to the late payment amount multiplied by the ceiling interest rate on mobilizing deposits with 01-month term announced by the State Bank of Vietnam at the time of payment. salary points. When the State Bank of Vietnam does not stipulate an interest rate ceiling, it shall be calculated according to the 01-month term deposit interest rate of the commercial bank where the enterprise or agency opening a transaction account notified at the time of posting. pay wage.
The salary stated in the labor contract and the salary paid to the employee is in Vietnam Dong, in case the employee is a foreigner in Vietnam, it may be in a foreign currency.