Payroll model: structure and template

Learn to read your payroll in detail and understand each of its sections with this simple post.

Employment resources

We are all looking forward to it arriving every month, it is always well received and, unlike some visits, we try to make it last as long as possible, what is it?: effectively, the payroll, that document that assigns each worker their remuneration and that must be issued along with proof of payment to certify that the company has fulfilled its duty. However, almost no one stops to look at each section of their payroll, since, in many cases, we do not understand them.

Would you like to know how to read each section of your payroll and know the types that exist? Keep reading this post and find out everything!

How many payroll models are there?

There are mainly two categories of payroll: those based on time worked and those that are determined according to the job held. Now let’s delve into the description of each of them.

Payrolls by time

  • Weekly payroll: the worker receives his payment every seven days.
  • Fourteen-year payroll: the worker is paid every two weeks.
  • Biweekly payroll: this is when the worker receives his payment biweekly.
  • Monthly payroll: it is the most recurring in Spain, and it is the one that is paid monthly, at the beginning or the end of each month (28, 29, 30 or 31 days).

Payroll by job

  • Payroll for executive personnel: it is the payroll that is applied to senior officials of an organization, such as executive directors and area heads. It contains slightly more sensitive information, such as bonuses, incentives or other aspects associated with your position; requires more discretion.
  • Payroll for workers: it is the usual payroll given to a company’s employees. Some organizations usually classify and group these payrolls according to the jobs of each employee.

What elements appear on a payroll and what does each one mean?

  • Company data: name or company name, address, CIF and contribution account number.
  • Worker data: name and surname, DNI or NIE, social security affiliation number, date of registration in the company, date of seniority, professional group, category, type of contract and bank account number.
  • Settlement period: date range to which payroll payment corresponds, normally a calendar month.
  • Salary receipts: these are the amounts that the worker receives for his work, such as the base salary, salary supplements, overtime, extra payments, etc.
  • Non-salary receipts: these are the amounts that the worker receives for other concepts that are not strictly salary, such as per diems, transportation expenses, compensation, social benefits, etc.
  • Deductions: these are the amounts that are deducted from the worker’s gross salary for different concepts, such as social security contributions, personal income tax, advances, garnishments, etc.
  • Liquid to be received: it is the amount that the worker receives in his bank account, once deductions have been subtracted from the gross salary.
  • Contribution bases: these are the amounts on which social security and personal income tax contributions are calculated, which may be different depending on the concepts that are included or excluded.
  • Signature and seal of the company and the worker: these are the elements that prove the agreement of both parties with the content of the payroll. The worker’s signature will not be necessary if payment is made by bank transfer.

Example of payroll with its sections

To finish this post, we want to leave you with this example of a payroll so that, when you receive yours, you know how to locate each section perfectly.

Protecting employee privacy on payroll

When preparing payrolls, confidential information of each employee is used, therefore, to ensure data protection during the process, the following aspects are contemplated, subject to the General Data Protection Regulation (RGDP) and the Organic Law of Protection of Personal Data and guarantee of digital rights (LOPDGDD).

Pseudonymization: in the event of a security crisis, it must be ensured that it is not known who owns the data.

Data encryption: IT systems for payroll management must have an encryption code to guarantee the protection of employees’ data.

Access restriction: it is essential to focus on preventing third-party attacks and preventing hackers from accessing payrolls or databases that store confidential information.

Data minimization: only personal data essential to carrying out settlements should be stored and processed.

We hope this post has been useful to you. Continue learning more about HR, professional development and business management with Educa.Pro!

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