What is payroll compliance?

It is the fulfilment of obligations on the part of the employer in different matters such us:

– Obligations towards the Authorities:

  • Drawing up the monthly pay slips of the workers for their payment, as well as the extraordinary payments.
  • New hiring of workers in Social Security: affiliation, registration and deregistration of workers.
  • Preparation of employment contracts that must include the obligatory elements that will regulate the employment relationship between both parties, as well as their corresponding communication to the Public Employment Service.
  • Submission of Social Security contribution settlements regarding employees to the administration.
  • Modification of hours and wages whenever required by agreement.
  • Submission and settlement of quarterly and annual personal income tax corresponding to the withholdings taxes made on the pay slips of both resident and non-resident workers.
  • Management of sick leave and work permits.
  • Make sure employment relations follow the regulations and collective bargaining agreements in force.

– Prevention of Occupational Risks: companies must evaluate existing risks, design an occupational risk prevention plan, monitor the health of workers, and train and inform employees.

– Notification of the opening and/or closure of work centres: The opening of the work centre must be notified for the purposes of monitoring occupational health and safety conditions.

– Data protection: Personal data protection regulations aim to guarantee and protect the public freedoms and fundamental rights of individuals, and especially their honour and personal privacy, so companies must ensure the application of security measures for the protection of personal, criminal and special data at all stages of processing.

Importance of having a good payroll specialist?

Importance of having a good payroll specialist?

Several key points should be highlighted:

  • Payroll managers need to be well organised to provide a quality service, as we work with a large amount of information on a daily basis, such as hundreds of names, numbers, records and reports to manage. In addition, there are numerous policies, rules, regulations and deadlines to comply with.
  • Keep informed and up to date on changes in government policy at both national and local levels that may impact the department and the companies to be managed. Newsletters and publications from government administrations and knowing who or where to call when the replies do not answer questions is also critical.
  • Having state-of-the-art platforms, management tools and technological services, adapted to current legislation and that guarantee maximum security, as well as agility in the processes. Many payroll management programmes or services may be obsolete or not adapted to the evolution or needs of the sector, thus hindering the management of the department.
  • Finally, what allows us to provide good advice is clear, understanding, precise and fluid communication with the client, so that those who are not in the field of expertise are able to understand the broad and complex labour regulations. Similarly, intra-departmental communication is essential when other fields of expertise are involved in certain processes.

Services included in payroll compliance

  • Creation of the work centre and obligation to have an occupational risk prevention plan
  • Creation of the company’s Social Security Contribution Account (CCC)
  • Employment contract drafting, which includes the conditions that will regulate the employment relationship (compliant with the spanish labour law)
  • Dismissals and termination of employment preparation and advisory
  • Employment Handbook preparation
  • Consultation regarding Labour legislation, Collective Agreements, Workers’ Statute, etc.
  • Notification of the employment contract to the SEPE (public employment service)
  • Registration of the employee with the Social Security by electronic means
  • Preparation of salary receipts (payroll) monthly
  • Payroll compliance advisory
  • Simulation of salaries: gross, net, calculation of IRPF
  • Monthly submission of compulsory Social Security contributions
  • Quarterly submission of compulsory income tax returns (irpf)
  • Notification to the labour authority of changes of contract, working hours and leave of absence
  • Company Labour Managements Before Social Security
  • Consultation regarding Labour legislation, Collective Agreements, Workers’ Statute, etc.
  • Freelance Service Agreement drafting
  • Freelance registration/ de-registration in Social Security
  • Obtainment of Social Security Number for individuals (employees and freelancers)
  • Employment Litigation

How can a Payroll specialist help me?

  • Cost reduction: By not having its own human resources department, the expenditure will only depend on the number of payrolls that are managed at that time without maintaining unnecessary commitments.
  • Increased quality: Increased performance of the factors employed, having the latest technology available without additional costs, software updates or new licences.
  • Expertise: It is necessary to constantly update legislation and labour regulations that require specialised knowledge, in this sense an external provider will easily adapt its processes and resources to each moment, thanks to its experience and specialisation in the field, and thus avoid risks.
  • Efficiency and competitiveness: By having a payroll expert taking care of the comprehensive management of your employees’ payrolls and labour matters, companies can allocate their resources to more value-added tasks within their business, increasing their competitiveness in the industry.

What are the challenges in managing payroll?

  • We face many complex deadlines, scenarios and companies, as well as changes in the regulations in force. In this regard, I would highlight as the the most important challenges we face the following:
    Comply with the several different deadlines established by the Labour authorities and Social Security administrations.
  • Keep updated with the law and regulations in force, as the employment market is nowadays constantly changing and adapting.
  • Adapting to the different needs of each different client, taking into account the different industries, company culture, size and applicable collective bargaining agreements.
  • Making sure the database of employees and employment conditions are updated, given that in this department there is a lot of personal data and documentation, it is essential to maintain them correctly.

Requirement for payroll management

The highlight would be the punctuality in deadlines and accuracy in the management of payroll and contracts. In this sense, a fluid communication with the client company is extremely important for the proper fulfilment of the same. Specialisation in the field. Last but not least, it is also necessary to use updated and adequate software for its calculation.

Find your Labour Lawyer

Isabel Sánchez

Isabel Sánchez

Payroll Specialist
Andrea Rubio

Andrea Rubio

Payroll Specialist

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