Through a employment contract, the employment relationship that exists between a company and an employee is formalized. Both parties, by mutual agreement, sign the conditions under which the professional relationship will be developed. The payroll is one of the most important documents for a worker. Keep in mind that its content shows key data such as salary (but also other aspects as we will see below). Those employees who have a long history tend to feel familiar with this issue.
However, those who apply for their first job, or are at the beginning of their career path, have an added interest in this topic. In Formación y Estudios We give you the keys to read a payroll. Do not forget that it may be advisable that you read the information in the document carefully to verify that all the data is correct.
1. Data of related parties in a payroll
As we have mentioned, the payroll shows the formalization of a professional link between the company that hires the employee and the professional who begins a stage of his career in the project. For this reason, The header of the document shows the data related to each of the parties involved in the agreement. Consequently, check the header section to verify that the data it contains are as indicated.
2. Types of payroll accruals
It must be taken into account that the corresponding withholdings are also applied to a payroll. However, beyond that action, we must remember that the professional generates value for the work he does in the company. The tasks he performs, the position he holds and the number of hours provide him with a source of monthly income. A source of income that lasts during the time in which the employment relationship with the company is maintained. Well, in the accruals section different types of data are grouped together. Some examples have a salary component. This point includes the payment of overtime hours that go beyond the usual hours (they extend and complement them).
At this point the base salary is also integrated. On the other hand, the payroll also contains non-salary payments. For example, some professionals frequently travel to other destinations within the responsibilities associated with their position. And, during the trip and stay at the destination, they have associated expenses that have nothing to do with their personal life, but rather are derived from the context in which the itinerary takes place. For this reason, allowances are recorded in this section of the payroll.
3. Payroll deductions section: key information
One of the key aspects in reading the payroll is that you know what your net salary is. That is, what is the total sum of money that you receive per month after applying the corresponding accruals and deductions. For this reason, After having explained in the previous section what salary and non-salary accruals are, we delve into the deductions. That is, the deductions include different percentages that are subtracted.
There are different perspectives of a payroll that you can take into account. For example, net salary is one of the points of view that you should consider. It refers to the amount of money you receive each month after applying the different sections. previously mentioned. Well, you can also interpret the payroll value from the perspective of the gross salary (which refers to the total amount). The payroll therefore contains many different data that are linked to each other.