Welcome to our comprehensive guide on calculating payroll! Whether you're a business owner, HR manager, or simply curious, understanding how to calculate payroll is essential for effective cost and human resource management. In this guide, we explain everything you need to know, step by step.
Gross payroll represents the total gross compensation paid to employees of a company over a given period. It includes salaries, bonuses, overtime, but not employer contributions (if employer contributions are included, it is called loaded payroll).
According to INSEE, it corresponds to the sum of the gross remuneration of employees. For URSSAF, it also includes legal and contractual supplements, commissions, bonuses, and benefits in kind.
Payroll is a key indicator for any company. It allows for control of personnel costs, budget planning, and optimization of human resource management. By mastering payroll, you can better predict expenses and make informed decisions.
Calculating your payroll helps you better control your expenses. Rigorous payroll management allows you to establish precise budgets, optimize HR strategy, particularly in terms of recruitment and training, and manage costs effectively.
Companies must report their payroll to social organizations like URSSAF. These declarations are essential for the calculation of social contributions and compliance with tax obligations. Good payroll management ensures that all legal obligations are met.
There is not just one way to calculate your payroll. You will calculate it differently depending on your needs. Here is an overview of the different payroll calculation formulas.
To calculate gross payroll, add gross salaries, bonuses paid, and overtime.
Gross Payroll = Gross Salaries + Bonuses Paid + Overtime
A concrete example: if a company pays €180,000 in gross salaries, €30,000 in bonuses, and €40,000 in overtime, the gross payroll will be €250,000.
Accounting payroll also includes employer contributions. This method allows you to know the total cost of remuneration for the company, including social charges. It gives you a complete view of the cost of all your employees. This result also determines the profitability of your company.
Accounting Payroll = Gross Salaries + Bonuses Paid + Paid Leave Provisions + Overtime + Employer Contributions
To anticipate budgets, budgetary payroll takes into account severance pay. It serves to give you an idea of upcoming costs for the year, project future costs, and plan your company's finances precisely.
Budgetary Payroll = Gross Salaries + Employer Contributions + Severance Pay + Paid Leave Provisions
You are not alone in this calculation. Today, many software tools allow you to go (much) faster. Data centralization, pre-filled calculations, simulation of different cost scenarios, these tools are useful for avoiding errors and saving time. We advocate for our own services because that's what we do at Polare, but that's because it's true 😊
For optimal HR budget management, anticipate your personnel needs and plan your hires. Avoid unnecessary recruitment costs and favor effective work organization. A good example is training your employees to fill open positions instead of systematically creating a new one.
Establish salary grids and bonuses to motivate your employees and reduce turnover. Ensure that your compensation systems are transparent and fair. This reinforces trust and loyalty among employees. A well-designed compensation system can improve employee satisfaction and increase productivity.
Automating HR processes, such as time and payroll management, can save you time and reduce errors. Use software to automate the calculation of bonuses, commissions, and benefits in kind. This allows you to have a clear and precise view of your payroll. Automated dashboards and reporting systems are valuable tools for effective management.
Mastering payroll is essential for the smooth operation of your company. By following the advice in this guide, you will be able to better anticipate your expenses and optimize your human resources. Use the tools and strategies presented for effective management tailored to your needs.
I hope this guide will be useful to you! Feel free to share your questions or experiences in the comments.