The simplest way to make payroll for businesses in 2024

Modeling employee payroll is the responsibility of the human resources department for the purpose of monitoring and controlling employees' salaries and other payments. So how can companies create the most complete, thorough and suitable employee payroll template? Below is a simple way to make a payroll to help optimize time for businesses. Let's find out now with 1C Vietnam!

1. Why do we need to make payroll for employees?

The payroll form is the most important administrative document for employees. Through the payroll, each employee will fully understand information related to his or her benefits. At the same time, related departments such as human resources and accounting can clearly understand and monitor the work process of each employee.

On the employee side:

Based on the payroll, employees can compare and check actual salary received. The total salary of each subject can include many different amounts of money, all of which need to be listed fully and in detail in the salary schedule. Furthermore, when there is a change in salary policy, the previous sample salary table is the first place to be updated.

On the business side:

The payroll template helps managers flexibly control salary payment issues and make appropriate adjustments to the budget. In addition, the payroll template is also an effective tool for the human resources department to compare the correlation between employees.

For example, which employees exceed or do not meet KPIs, which employees are ensuring work performance,... all are clearly shown in the sample payroll. Through this, businesses can evaluate labor quality and manage human resources more easily.

2. Information needed in the payroll

To find a simple way to make a payroll that is suitable for each business, you first need to clearly understand what a basic payroll includes. Normally, the payroll template will include the following content:

• Employee information: Employee names must be included in the payroll sample file. Attached is information such as the position applied for, contact method (phone number, email,...).
• Basic salary: This is the main salary the employee will receive according to the agreement with the employer. This salary usually does not include bonuses, allowances and other benefits.

• Actual working days: These figures are clearly shown to determine the total actual working time. Employees will be paid based on the actual number of working days.
• Allowances: Normally there will be two main types of allowances, which are those that need to be insured and those that do not need to be insured. In particular, the allowances that do not require insurance include housing, meals, gasoline, and telephone allowances. The remaining allowances that need to be insured are position pay, responsibility allowance, toxic/dangerous allowance, area allowance, heavy duty allowance,...
• Nominal income: Is the theoretical total amount of money an employee will receive, including all basic salary and allowances.
• Actual gross salary: Is the amount of money not included in other expenses that the employee will receive. This salary has been deducted from advances and insurance.

• Personal income tax: If the employee has signed a contract with the enterprise, he or she must pay this tax for 3 months or more.
• Insurance salary: Normally, companies will deduct from the employee's salary according to each level of insurance payment.
• Actual pay: This is the official salary that employees will receive at the end of the month. This salary includes the total of all the above salaries minus advances, personal income tax and insurance.

3. Summary of 2 simplest ways to make payroll in 2024

To have a clearer view of building a payroll, 1C Vietnam has compiled the two simplest ways to create a payroll that businesses can refer to.

3.1. How to create a simple payroll via Excel

How to make a simple payroll using Excel must ensure the following columns are included:

• Serial number of employees: Is the serial number according to employee name in the Excel file.
• Full name: This column will list all employee names in the business that need to be paid. And to avoid confusion because there are many people with the same first and last names, the accounting department needs to specifically divide each department and department to ensure benefits for employees.
• Actual working days: This is the column used to record the actual number of working days of the employee extracted from machine data or timesheets.
• Official salary column: Used to record salary based on the salary agreed in the labor contract.
• Allowances: This column records all the company's allowances for employees such as lunch allowance, gasoline allowance, telephone allowance,...
• Total income: Record the total main salary and allowances.
• Actual total salary: Shows the total salary calculated based on the employee's actual working day.
• Bonus/penalty: Includes monthly bonus and penalty levels for each employee.
• Insurance column: Includes types of insurance that the company pays for employees such as: social insurance, life insurance, health insurance, labor accident insurance,...
• Advance column: Is the amount of money the employee has advanced before being paid or advances when going on business trips.
• Total actual salary: Total final salary the employee received after adding and subtracting amounts and calculated according to the formula:

Actual salary = total actual salary + bonuses - insurance payments - advances - penalties (if any)

Some commonly used functions in making simple payroll in Excel include: IF, AND/ OR, LOOKUP/ VLOOKUP, SUM/ SUMIF/ SUMIFS,...

Based on all of the above criteria, the accounting department only needs to divide and arrange columns in the Excel table in a clear and easy-to-understand way to complete a basic salary calculation sheet for the business.

3.2. Simple salary calculation with 1C:Company Management software

1C:Company Management software supports outstanding features to automatically calculate salaries for businesses with the following characteristics:

• Supports calculating many types of salary: The software allows declaring many different salary levels, salary calculation types and accurate salary calculation formulas for employees. In addition, 1C:Company Management software also supports businesses in setting up flexible employee compensation systems. And allows each employee to apply a level, salary calculation formula, salary calculation type, depending on each position, position or capacity,...
• Support for automatic salary calculation: 1C:Company Management solution allows automatic salary calculation from administration, insurance to personal income tax based on legal regulations and declared data. This helps businesses save time and effort when paying employees.
• Contract tracking: Software that supports companies in managing and tracking the work of employees in the form of contracts. In addition, 1C:Company Management also automatically calculates wages based on data such as time, workload, unit price,...
• Create salary reports: This software helps companies create salary reports according to legal regulations including: payroll, personal income tax finalization, salary payment table,... Users can Adjust reports according to business requirements.

3. Some basic payroll templates for businesses

There are many simple and quite easy ways to make a payroll. However, if you do not want to waste time creating an employee payroll, businesses can refer to and use the 4 payroll templates compiled by 1C Vietnam below:

• Excel employee payroll template

• Sales employee payroll template

• Employee payroll template Word file

• Personal payroll template

Above is detailed information on how to make a simple payroll as well as the accurate and easy-to-use payroll software that many businesses use the most. Hopefully the above sharing can help businesses partly understand important and necessary information, requirements, and salary calculation methods to effectively apply salary calculation formulas suitable for their company.