We're rapidly approaching the end of a rather short and cold month February. For most companies this means wage calculations for employees are coming up. People who are entrusted with personnel administration will know they have to communicate the right information to the payroll provider, so a correct payout can be calculated. A necessary process where sometimes mistakes can happen. If this occurs however, it might lead to frustration amongst HR as well as employees themselves. That's why we listed the most important aspects of employee data which should be communicated to your payroll provider for a correct payout.
Changes in workforce
In Belgium we use the Dimona declaration to record changes in workforce and report them to the Department of Social Security. By submitting this document, the payroll provider knows how many employees were active in the workplace during the past month and for which period of time these people should be paid for.
When hiring new candidates, be sure to ask if they could submit their vacation certifications from their previous employer. By doing so you can ensure a faster employee onboarding with your payroll provider.
Vacation and sick days
Hot summer months are not yet within our grasp, but that doesn't mean people aren't requesting vacation. That's why it's imperative to have a clear overview at all times of approved vacation days and their corresponding types. Don't forget to check if sick days have been approved (with a corresponding sick note), and if these days should be paid out accordingly.
Another important element when calculating wages, is checking if no employee has had their personal data change during the past month. Maybe someone moved to a different address or had a change in marital status. This information should be communicated to your payroll provider as well.
Why is this critical? Changing your home address could have an impact on compensation for travel between work and home. If your marital status has been altered, this directly affects the amount of income tax that is calculated towards your wage.
With Officient, employees get access to their own self-service, which they can use to review and edit their own personal data. This saves HR people time and prevents input mistakes by transferring some of the responsibility towards the employee.
More and more companies are handing out variable compensation. This method of determining pay is often applied more within certain sectors and functions, often related to performance measures. Some examples are giving out bonusses and premiums, or being paid through commissions or warrants. In 2018, thanks to our government, you can add the bonus related to revenue or profit to that list. The data surrounding variable pay and corresponding performance measures should be transferred to the payroll provider so they can incorporate it into the pay slip. They'll also help you make sure you or your employees don't pass certain fiscal thresholds.
Travel, hotels, dinners, business calls.. There are a lot of expenses an employee can make towards executing his or her function within the company. Be sure to check which expenses have been logged during the previous month and if these are acceptable. When you confer this data with your payroll provider, they'll be able to pay the expenses through the pay slip, saving you the hassle of having to reimburse these expenses manually.
Our tool can help your company speed up the wage calculation process. We help you centralize all data surrounding employees, vacation, variable pay and more within a single application. At the end of the month, you can quickly review this data or even give your payroll consultant read-only access, so they can check for themselves. Some of our payroll integrations even transfer this information directly.