Payroll in Spain – Economipedia

Payrolls are essential documents in labor relations. In the case of employees, the payroll is the document that certifies the salary that a worker receives at the end of the month.

For both companies and employees, payroll is a very important element that should not be overlooked. In addition, it is essential that the payroll is done correctly, since, if not, it can cause legal problems for the company.

For this reason, historically, the human resources departments of companies have devoted a lot of time and resources to the preparation of these documents. Today, with new technologies, there are tools that make this task easier.

There are computer programs that allow companies to automate this process almost entirely. This not only helps optimize resources and reduce costs, but also reduces the chances of making a payroll error.

On the part of the employee, there is also often confusion in interpreting payroll. Not knowing how to interpret a payroll correctly can lead to an erroneous calculation of the net salary to be received. For this reason, we recommend calculating payroll and thus knowing with certainty the amount that the worker will receive in his bank account.

Parts of a payroll

A payroll is made up of different elements that we explain below:

  • First, there appear Company data. The tax name, CIF, address, etc. will appear in the data.
  • On the other hand, it is necessary to include worker data who will receive the payroll. Here you must include your name, professional category, job, social security number or DNI, among others.
  • Once both the worker and the company data have been completed, it is time to include the accruals. Here all the items that the worker is going to collect will be collected. Among them are the base salary, salary supplements, overtime, incentives, extraordinary payments, etc.
  • You must also include the deductions. This part of the payroll includes all the items that are subtracted from the gross amount to be received. For example, personal income tax withholdings, professional training or unemployment.
  • Once all this information has been included, the calculation of the liquid to be received by the employee. To do this, it is necessary to subtract the total deductible from the total accrued.
  • Lastly, you must indicate the contribution base for the general Social Security system and the signature of the company.
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How to save a part of your payroll?

The payroll is the income that a worker receives and, therefore, what allows him to satisfy his needs. Although it is true, due to certain circumstances the employment contract can be terminated and the employee is left without income.

In this circumstance, it is important to have savings to overcome a bad situation without compromising anyone. To achieve a good “financial cushion”, it is important to save a part of the payroll month after month.

First of all, it is essential to decide what part of the payroll is going to be saved. Once quantified, it is a good option to open a bank account to which to transfer the amount directed to save. In this way, that account will increase month after month, since it should not be used to spend.

In addition to this, it is also interesting to carry out an analysis of the expenses incurred throughout the month. This will serve to realize the expenses that are truly important and those that can be dispensed with so as not to waste money.

Lastly, and most importantly, be disciplined. Saving is not something that should be done when it suits you or when you have passed a month with little spending. The savings must be made month after month and trying to increase it progressively.

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