Payroll processing

Those who are studying in the field of finance and learn accounting information, one of the types of expenses that they are familiar with is the salary fee, and consequently the method of accounting and recording this fee in the offices of newspapers and general They will learn, but it should be noted that the discussion of costs and salaries has a lot of content that any accountant or person working in the salary of an organization or institution will need to have specialized knowledge in this field. In summary, we can identify salary control systems, structure of insurance and tax laws and other legal matters such as overtime and missions and preparation of documents for registration of payroll lists and other issues that we will become more familiar with in the following.

You know that labor costs account for a large part of the cost of producing goods and services of an institution or an economic unit, and in fact will have a significant impact on the profits of business units, of course, the importance of salaries in different units. It varies, but is usually the cost of wages from the income of economic and commercial units, so it is very clear that those who study in the field of finance should have comprehensive and comprehensive information in this area.

What are the components and elements of the payroll system?

The components and elements of a payroll system in general, regardless of whether the system is designed for a commercial, service or manufacturing institution, are as follows.

1- Recruitment circle

2- Personnel entry and exit registration circle

3- Payroll accounting department

In order to examine the above-mentioned components and elements, we will introduce them in general and further discuss them in detail and analyze the details of their tasks.

What is the function of the recruitment circle?

The recruitment unit in each institution is responsible for preparing and compiling instructions and regulations for the employment of personnel, observing and considering labor and social affairs laws and other laws, and on the other hand, other duties related to or training personnel, how to use Is responsible for leave and job de script ion, transfer of staff to other departments of the institution and similar cases.

What is the function of the personnel entry and exit circle?

The task of this department is to collect information related to the time of personnel work and in fact the presence and absence of each employee in the units and units, which is done in special ways and methods.

What is the role of the payroll accounting department?

This department is responsible for preparing and compiling the salary list and determining the gross and net amount of salary payable to each of the personnel. In fact, the professor and the salary documents of each of the personnel and employees are kept in this department. Note that the issue of payroll accounting is discussed in this section.

Payroll accounting:

Automation is used in payroll accounting due to the density and continuity of information, how information is processed and the importance of its speed and accuracy.

Information such as hourly or daily salary rates that may not change for a long time, as well as programs such as how to calculate tax deductions and Social security Fund premiums whose rules are fixed throughout the year, are best stored in computer memory.

Using this information, calculations such as gross wages, deductions, determination of net wages and updating the history of each employee and worker can be done electronically.

System importance:

Since the related external salary is a large part of the costs of any institution, it is necessary in this system to make the necessary predictions to ensure the correct payment of salaries and wages.

On the other hand, payroll accounting should be designed to quickly gather the necessary information, calculate the necessary deductions and calculate the net amount payable to each employee, and take appropriate measures to prevent the payment of fraudulent and other types of abuse. Provide.

In order to comply with the law, the employer is obliged to send the necessary information about the employees and the amount of their salaries and benefits to the competent authorities.

In Iran, according to the law on income tax, the employer is obliged to send the names of employees and their details to the tax areas where they are sent and to pay the taxes belonging to the employees to a special account.

In addition, according to social security laws, it is necessary for the names of employees and the amount of their salaries to be paid to special accounts in special accounts every month to the social security offices of the place of submission and the employee and employer's share premiums.

It should be noted that payroll accounting includes only the employees of the business unit and does not include the people who provide services in the business unit as contractors and employees.

Amounts paid to this group of employees are considered as remuneration or other titles and are not part of the salary of the institution.

Employee salaries and benefits

What is paid on a monthly basis for the work done by administrative staff, managers or similar service providers is called "salary" and the payment to workers (simple or skilled) is called wages, which are based on hours, days, months and or the amount of production is determined.

Usually, in addition to fixed salaries, other benefits such as bonuses, bonuses, unit profits, etc. are paid to employees.

These benefits are paid continuously and intermittently. The above benefits may be paid to employees in cash or in kind.

Profit and pay rates are usually determined by agreement between the employee and the employer. This rate is related to normal Wu legal hours.

If a worker works overtime for a period of time after the end of the legal working hours of the day, or is working in the business unit during the holidays, he will be entitled to a salary in addition to the normal salary. The times are determined by law.

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