What Businesses Need to Know about Payroll
October 4, 2021
Payroll has always been a top priority for both employers and employees. An appropriate salary and bonus regime ensures that the business successfully implements its strategic goals while also making employees feel secure in their ability to contribute to the business.
Talentnet’s End-to-end Payroll & System Solution enables “all-in-one” integration for labor and salary-related operations
Generally, the salary system is usually classified as follows:
- Base salary: is the salary that is agreed upon based on the job requirements, the business’s labor demand, and the employee. Allowances, bonuses, benefits, and other supplemental income are not included in the base salary.
- Social insurance includes salary, allowances and other bonuses as prescribed by law. The minimum wage for payment of mandatory social insurance is determined by region, working conditions (normal or heavy, hazardous, or dangerous conditions), simple jobs, and jobs requiring vocational training.
- Probationary salary: at least 85% of the base salary of the job.
- Allowance: a sum added to the basic salary to compensate for factors such as working conditions, job complexity, living conditions, and labor attraction level. It includes the amount of money provided to an employee when he is out of work or temporarily stops working, based on the number of insurance obligations performed by the employee during his working time, such as unemployment allowance, severance allowance, job loss allowance, sickness benefit, maternity benefit, and so on.
Common rules and forms of payment in the business
Businesses must ensure a reasonable wage relationship between employees in different conditions when developing salary and bonus regulations and making monthly payroll. Businesses must rely on labor and production organizations to pay equal wages to employees performing similar tasks to professional and technical workers directly engaged in production and business service. Furthermore, businesses should pay attention to wage distribution based on labor quantity and quality to ensure that labor productivity grows faster than the average salary.
Common payment methods:
- Time-based salary: Salary+allowance (if any)/standard workday x actual number of working days and paid holidays.
- Revenue-based salary: pay according to individual sales, group sales, and market development.
- Flat rate pay: Flat rate x percentage of job completion.
- Pay per item: Quantity of products x Unit price of a product
Benefits of using outsourced payroll services
Salary and bonus regulations are some of the most important factors in establishing a company’s brand in order to attract and retain talent. Using an outsourced payroll service is the best solution, as it assists businesses in developing a reasonable salary and bonus policy as well as implementing a quick and efficient payroll process.
Outsourced payroll services relieve pressure on the human resources department by freeing up more time and resources for important business activities, allowing businesses to focus more on development and achieving strategic goals. Outsourced payroll services bring experienced salary experts, knowledgeable about the law and regulations on salary and bonus, to advise and support businesses in addition to owning a high-security and backup system, which helps businesses back up sensitive data safely, prevent intrusion from hackers, and ensure good data recovery in the event of a crisis.
Businesses, in particular, have access to a comprehensive integrated payroll system solution through reputable payroll partners such as Talentnet with End-to-end Payroll & System Solution. This solution enables “all-in-one” integration for labor and salary-related operations, allowing businesses to quickly and conveniently access all relevant personnel information at any time and from any location via websites and mobile app platforms. Following that, standardized and digitized payroll processes aid in the improvement of employee interaction and experience.