Although labor relations do not have the same commercial nature as other types of legal businesses, the truth is that they are still contracts and therefore are sources of obligations for both the employer and the worker. To obligations such as the delivery of payrolls are also added the social factor that generates great sensitivity to State institutions because work is a fundamental element for human life.

All this generates legislative and regulatory guidelines that must be complied with by companies and other legal entities that serve as an employer part of millions of labor contracts throughout Spain.

These guidelines are made up of a series of basic rules aimed at regulating the employment relationship, especially to guarantee the protection of workers’ rights.

Among the basic labor standards are various procedures that are applicable daily in all types of companies, one of the main ones is to manage payroll,the main document accrediting the receipt of the salary.

What is a payroll and what role does it play?

The payroll is comprised of the sum of all the financial records in which the remuneration to which a worker is entitled by virtue of his employment relationship with the company relates.

When calculating a payroll,

it must include not only the basesalary; it must also incorporate all kinds of bonuses such as overtime, night bonuses, vacations and social benefits, as well as those deductions that may be applicable depending on the nature of the employment contract.

This represents a receipt of payment in which the days paid by the company to the worker are recorded, and must contain the identification data of both contractual parties (worker and company), the settlement period, the code of Social Security contribution,professional category of the worker, date of seniority, code of the type of contract and workplace.

Generally, these types of records are kept by the Human Resources department, in which administrative and accounting activities are carried out.

However, nowadays with the application of the Internet and the benefits of new information and communication technologies, companies can choose to make their payrolls online,which allows them to streamline these processes and minimize margins of error.

Advantages of online payroll

The Human Resources department is one of the most important in the company, being one of the most open to the application of new technological tools.

In the case of computer tools that allow online payroll calculation,the advantages that its application brings to the company are important, among which are:

  • These softwares are characterized by having high levels of security,so the information provided by the company is protected from any possible violation.
  • The margin of error in the calculation of payroll is reduced,as it is not subject to the direct manipulation of Human Resources personnel.
  • The application of a software specialized in online payroll management allows the streamlining and decongestion of the processes developed in the Human Resources department.

In the same way, the control and registration of salary payments and other bonuses is facilitated since all the information would be concentrated in one place.

In addition, reducing the margin of error would also reduce the chances of incurring penalties or infractions for the incorrect handling of the company’s payrolls.

Infractions and penalties derived from the incorrect delivery of payrolls

Being a legal obligation enforceable to all Spanish companies – comparable to the obligation to keep the invoices of the company -, the breach or error in the delivery of the labor payrolls entails sanctions of different nature attributable to the employer, which may consist of:

  • Between 60 and 625 euros for the lack of timely delivery of the salary receipt to the employee.
  • Between 626 to 6,250 euros for inconsistencies between the amount given to the worker and that reflected in the payroll.
  • Between 60 and 625 euros for the application of an invoice model different from the officialone.

Also, as we indicated in a previous post, it is mandatory for any company to keep

How to calculate payroll online

To perform the payroll calculation through an online tool, it is enough to hire a software specialized in the matter and that adapts to the specific needs of the company.

In this way, all that the head of the Human Resources department must do is provide the program with the relevant information about the labor relations that you want to reflect. That is, main data such as names of the workers, their income, bonuses to which there is a place, benefits and other rewards or deductions applicable to each employee.

Finally, the software will automatically calculate the corresponding payroll and issue the relevant receipts.

This type of computer management tools are streamlining and optimizing processes in companies around the world, so it is expected that their application will become increasingly common in the operation of Human Resources departments in Spain.