Definitions: Payroll Management

Many business owners use outside payroll services. These companies guarantee compliance with all the applicable laws. This keeps the business owner out of trouble with the law and saves time that can be devoted to something else in the business. If you choose to do your own payroll, it's recommended that you purchase an automated payroll system. Even if the rest of your books are done manually, an automated payroll management system will save you time and help considerably with compliance.

1. What is the concept of payroll management?

Salary is the main source of income for employees and is a cost element that constitutes the value of products and services created by the unit. Therefore, payroll management is a concern of many different subjects such as employees, employers... Normally payroll management includes basic salary and bonuses based on sales, overtime pay, overtime pay…

Simply put, salary management is a step in payroll management company. It is the process of paying salaries and bonuses to employees in the enterprise. Paying reasonable and appropriate wages has a positive effect in motivating employees to be enthusiastic at work, increasing labor productivity and employee engagement with the company.
 
 
 
Payroll management Services - Automatic Data Payroll

2. All records pertaining to payroll taxes

An employer, regardless of the number of workers they employ, must maintain all records pertaining to payroll taxes (income tax withholding, Social Security and federal unemployment tax) for at least four years after the tax becomes due or is paid, whichever is later. Altogether, 20 different kinds of employment records must be kept just to satisfy federal requirements.

2.1. Income Tax Withholding Records

  • Name, address, and Social Security number of each employee
  • Amount and date of each payment for compensation
  • Amount of wages subject to withholding in each payment
  • Amount of withholding tax collected from each payment
  • Reason that the taxable amount is less than the total payment
  • Statements relating to employees' nonresident alien status
  • Market value and date of noncash compensation
  • Information about payments made under sick-pay plans
  • Withholding exemption certificates
  • Agreements regarding the voluntary withholding of extra cash
  • Dates and payments to employees for non-business services
  • Statements of tips received by employees
  • Requests for different computation of withholding taxes

2.2. Social Security Tax Records

  • Amount of each payment subject to FICA tax
  • Amount and date of FICA tax collected from each payment
  • Explanation for any difference

hr_service_payroll
 
Payroll administration services
 
Payroll for a small firm is a simple task with a good one-write system. Any office supply store can show you samples of one-write systems, which most accountants recommend because they reduce errors and save time in making payroll entries. Payroll management can be quite a challenge for the new business owner. There are many federal and state laws regulating what you have to track related to payroll. Failure to do so could result in heavy fines--or worse.

3. Build a salary scale and payroll system

3.1 What is payroll management services and how to build a payroll system in an enterprise?

According to Clause 4, Article 5 of Decree No. 114.2002.ND-CP, enterprises continue to apply the salary scale and payroll prescribed in Decree No. 25. CP, Decree No. 26.CP dated May 23, 1993 of the Government temporarily regulating the new salary regime of civil servants and public employees... The construction of salary scale and salary table is determined in the following order:

3.2 Job analysis

  • Conduct investment statistics on jobs according to each title currently used in the enterprise.
  • Collect detailed information about each specific job position to determine the main tasks, sub-tasks, relationships of each job title and determine professional requirements regarding educational qualifications, work experience, knowledge, skills, physical condition, and necessary working conditions for each job.

3.3 Evaluate the value of work

On the basis of job analysis, conduct a job value assessment to determine similar job positions that can be grouped into groups as a basis for determining the salary scale and salary table for each group.

3.4 Job assignment

After analyzing and evaluating the value of each job, group jobs that have the same function and require similar knowledge and skills. Each job group is defined into a job class depending on the importance of the job group according to the job classification order carried out according to the following steps:
  • Group individual jobs into job groups.
  • Set up job quotas and quota standards.
  • Specify a job class for each job group.
payroll management company
 
Payroll management company

3.5 Set up salary scale and salary table for each job level

Setting up the salary scale and payroll based on the information collected and the influencing factors considered, setting up salary management is carried out in the following order:

  • Determine salary levels in the enterprise by obtaining information from the job classification stage.
  • Determine the number of salary levels in each rank based on calculating advantage points based on work results and considering the level of complexity required for the salary scale and salary table.
  • Regulation of salary levels by rank and grade.

These are the basic steps for salary management according to payroll management company guidance. However, in reality, businesses will sometimes develop many other payroll administration services methods depending on the characteristics of that business.

CONTACT FARO VIETNAM today for human resources recruitment services.

Faro Vietnam

HANOI HEAD OFFICE

  • Tel: + 84 24 3974 3091

HO CHI MINH CITY OFFICE

  • Tel: + 84 28 3821 4654

 

FAST NEW