ABC of mass payroll payments

Classification of payroll payments according to type of contracting

These payments are generally classified as follows:

Full-time. It is the payment of a salary for a determined period of time (weekly, biweekly, monthly, among others) and is equivalent to the hours worked. It also includes additional benefits such as bonuses, commissions and other incentives.

Part-time. Usually consists of an hourly wage or a predetermined rate. It may also be proportional to the hours worked, but without additional benefits.

Temporary. Refers to a type of employment contract for a specific period of time; generally, to cover temporary needs of the company.

By contract. In this category, workers only receive the payment established in a previously agreed contract, instead of a salary.

Fees. These are payments or salary payments subject to a fee for independent professionals or contractors who, in turn, provide their services to the company on a temporary or project basis.

Recommendations for an efficient payroll payment

Here are some suggestions to help you make your payroll payments efficiently and easily:

Automate payment processes. Use a payroll management system or reliable human resources software in order to simplify and streamline the payment process. This will help you reduce errors and processing time.

Keep accurate records. Keep a detailed record of wages, hours worked, deductions and any other relevant items to avoid confusion and inconveniences.

Establish a calendar. Define a regular payment date to meet labor obligations. Also, let your employees know the exact day they will be paid.

Use electronic banking. It facilitates the entire payment process; through the efficiency, security, control and flexibility provided by its services.

Comply with legal regulations. Make sure you are up to date with your country’s labor and tax laws, including payroll taxes, social security payments, fiscal obligations, among others.

Synchronize the processes with the accounting system. This ensures the proper recording and control of your company’s personnel expenses. It also contributes to proper financial management and compliance with legal obligations.

Protect confidential information. Make sure to keep your employees’ personal and financial information as secure as it is protected. In this regard, use appropriate security measures to prevent any type of data leakage or theft.

Train your payroll team. Provide training and education to your human resources and accounting staff; you will undoubtedly ensure that they understand payroll processes and stay up-to-date on payroll regulations.

Tips for the payment of other payroll items

Here are some tips for the payment of other items:

Know the additional concepts. Familiarize yourself with the different charges that may exist in addition to the base salary, such as bonuses, travel expenses, commissions, overtime, among others. This will help you understand the payments you must make.

Review labor legislation. It is important to know the regulations and laws regarding the payment of fringe benefits. Make sure you comply with these obligations, making the compensations as established.

Establishes a follow-up system. Implement a procedure to follow up on the timely cancellation of these concepts.

Automate processes. Consider using a software that allows you to automate the calculation and processing of additional payroll items. This will help you save time while reducing errors in the calculations.

Communicate with your collaborators. Provide clarity to employees on the different concepts and how they are calculated. Also, maintain open and transparent communication in order to avoid misunderstandings.

Verify records. Check attendance records, schedules, leave and other factors that may influence the amount of these payments. This will help you avoid questions or problems.

Technology tools that facilitate payroll payments

There are several tools that facilitate payments. Among them are the following:

Payroll software

These are programs that allow you to automate and streamline all payroll processes; from the calculation of salaries and other concepts to the payments to your employees.

Human Resource Management Systems (HRMS)

HRMS have functionalities that allow you to efficiently manage payments; by integrating payroll functions along with other areas such as accounting, human resources and more.

Electronic payment platforms

They allow companies to make payments directly to their employees’ bank accounts. For example, Airtm is the world’s most connected digital dollar account and through it you can make mass payroll payments or receive payroll.

In addition, unlike traditional bank transfers, Airtm allows you to make instant payments in digital dollars; without restrictions on amounts, processing costs or access to the platform, allowing employees to withdraw their money in local currency.

Mobile payroll applications

Allow your employees to access their pay slips; update their identification data, make requests for advances or reimbursements and receive notifications.

Prepaid debit cards

These cards are automatically reloaded each pay period. Employees can use them to make purchases or withdraw money at ATMs.

Also, keep in mind that each country has its own regulations regarding payroll payments; therefore, it is important to know and comply with the corresponding labor laws.

We invite you to join Airtm that provides you with a comprehensive solution to manage mass payments; this, through simple and ready-to-use tools. In addition, it offers you more than 400 payment methods through a single account.