How is payroll managed?

How is payroll managed?
How is payroll processed?

Payroll management in a company refers to the process that starts with collecting all individual and collective data and ends with declaring this information to public authorities. It involves the following steps:

• Collecting data related to employee activity (absences, schedules, etc.)

• Calculating remuneration, social contributions/deductions related to salary, as well as income tax withholding (PAS – pay-as-you-earn tax)

• Producing mandatory declarations, including:

  • The preparation of the Single Hiring Declaration (DUE)

  • The completion of the Social Security Declaration (DSN)

What are the challenges of payroll management?

Payroll is constantly affected by changes in legislation and collective agreements. This requires companies to ensure continuous legal monitoring in order to maintain what is known as payroll compliance.

Any error made during payroll processing may result in:

• Sanctions in the event of an URSSAF audit: financial, administrative, and even criminal penalties

• Labor court disputes in the event of a conflict with an employee

• Loss of time and increased risk of further errors when making retroactive corrections

An error in entering variable payroll elements can lead to a chain reaction of errors, including in the Social Security Declaration (DSN).

What tools are used for payroll management?

Payroll software

Payroll management software is an IT tool that allows payroll to be processed in an automated and simplified way, ensuring the production of compliant payslips. It can be hosted in different ways:

• On-premise (single workstation or internal network): the software is installed on company computers or servers

• SaaS mode: the software is hosted on the provider’s servers (online payroll software)

Advantages of payroll software include:

• Optimization of working time for the payroll manager

• Automatic updates of social and collective agreement rules by the software provider

• Improved reliability and security of social data

• Automation of declarations (DUE, DSN) and payroll calculations

• Transfer of payroll entries to accounting systems

• Management of multiple totals (gross salary, taxable net salary, leave balances, ceilings, etc.)

• Generation of reports for HR reporting purposes