It is the receipt document that the employer must generate and deliver to the employee as proof of remuneration for the services they have provided.

The format of payrolls is legally regulated and must be composed of the following concepts:

Header

The payroll header must contain all identifying data of the employer and employee, as well as the settlement period. Specifically, the data to include will be the following:

• Legal name, registered address, Tax ID and Social Security contribution code of the company.

• Payroll settlement period (start and end date)

• Name, Tax ID, Social Security contribution number, professional category and seniority date in the company of the worker

• Contract type code and work center where the worker will carry out their duties.

Accruals

They are divided into:

• Salary perceptions: which are composed of:

  • Base salary: minimum part of the salary stipulated in the reference agreement.
  • Salary supplements: such as seniority, languages, agreement bonus…
  • Extra payments: usually 2, in summer and Christmas, (although there could be 3, for the profit payment) that are prorated by months taking into account permanence in the company.

• Non-salary perceptions:

  • Allowances
  • Transportation bonus
  • Compensation
  • Medical insurance.

Deductions

Which can be:

• Common contingencies: 4.7% of the Contribution Base for Common Contingencies.
• Unemployment: 1.55% of the Contribution Base for Professional Contingencies
• Professional training: 0.1% of the Contribution Base for Professional Contingencies.
• Personal Income Tax (IRPF): is the percentage withholding applied to the employee.

Base calculation

Here the necessary calculations to obtain the bases from which the above concepts will be derived are reflected.

• Contribution for common contingencies.
• Contribution for professional contingencies.
• Contribution for overtime hours.
• Subject to Personal Income Tax.
• Personal Income Tax for benefits in kind.
• Total business contribution.

Accounting for your payrolls in FacturaDirecta is very easy. In the tutorial “Enter payroll as expense” we tell you how.

We hope this information is very useful to you.