Have you ever wondered what the secret is to motivating employees to achieve the highest levels of productivity? Would you like to know how companies and institutions can benefit from a magical tool that ensures employee satisfaction and gains their complete trust in the company? If your answer is yes, then you are in the right place! Payroll management for employees is not just a financial sheet but rather a fundamental pillar for achieving success in any organization. Therefore, in this article, we will reveal to you the secrets of the payroll sheet in a comprehensive manner, what it is, and how it can be a powerful tool to enhance employees’ performance and confidence in the company. We also present to you the advantages of the Qoyod accounting system, the best program for creating salary streams in Saudi Arabia. Get ready for an exciting journey into the world of payroll management, where wisdom and strategy meet to create a positive and distinguished work environment!
What is a payroll sheet?
The payroll sheet is a table that contains all the payroll information for employees. The process of creating the payroll sheet includes preparing and disbursing employee salaries on a regular basis. It includes calculating each employee’s monthly salaries and applying appropriate incentives and deductions, such as bonuses, advances, social insurance, taxes, and deductions. Audit and review processes are also carried out to ensure the accuracy and comprehensiveness of financial statements and to ensure that each employee’s salary is calculated accurately and without committing any errors to preserve the rights of both employees and the company.
The importance of a payroll sheet
The payroll sheet is considered an essential and vital part of human resources management processes in companies and institutions to achieve employee satisfaction, enhance organizational efficiency, and build a positive and healthy work environment through the following points:
1: Ensuring accurate payment of salaries
It helps to ensure full accuracy in the calculation of staff salaries and subsequent emoluments, deductions, and others, thereby ensuring that salaries are paid without miscalculations.
2: Achieving legal compliance
Payroll contributes to compliance with controls to ensure compliance and avoid legal problems. It also helps with tax compliance by calculating and paying payroll taxes, such as income tax.
3: Documenting employee data
The general employee payroll outlines the nature of the employee’s work and the details of his salary and entitlements, which helps the company document employee data and have clear information about each employee.
4-Motivating employees
Receiving a salary on time contributes to enhancing employees’ feelings of confidence and stability and improves communication with them, which helps motivate them to work hard and effectively.
What are the contents of the general payroll sheet in Saudi Arabia?
The contents of the general payroll sheet in Saudi Arabia include several basic elements that vary in accordance with the business needs of each company. In general, the contents of the payroll are as follows:
1. Personal information of employees
It includes basic information such as the employee’s full name and may include a national ID number, date of birth, contact information, etc.
2-Payment period
The payment period is from a specific date to a specific date and may be a month or two weeks.
3-Working days and hours
Payroll includes the number of days or hours the employee worked in the specified pay period, including overtime.
4- days and hours of absence
It also includes the number of days or hours of employee absence during which he did not work, regardless of the reason, in addition to annual, sick, and other types of leave.
5-total salary
It is the employee’s entitled salary that was agreed upon in the employment contract with the company (without applying any increases or deductions).
6: Increases and additional wages
It is any additional amount due to the employee, such as bonuses, advances, compensation, wages for additional hours and days of work, vacation allowance, etc.
7-Deductions
These are the amounts that are deducted from the employee’s salary, such as social insurance, income tax, and any deductions resulting from violations in accordance with the company’s policies and laws.
8-Net pay
It is the final wage value that the employee will receive after applying the necessary increases and deductions.
9: Necessary papers and documents
It is important to include any necessary documentation documenting overtime, absences, increases, or deductions from employee wages.
10-the signature
It is a space where the employee signs and acknowledges the accuracy of the information and the receipt of his salary.
How do you create an employee payroll sheet?
After you learned about the contents of the employee payroll sheet in Saudi Arabia, learn how to create the payroll sheet easily in the following steps:
1-Data collection
The first step is to collect employee data, which includes their names, addresses, salaries owed, hours worked in the pay period, and any bonuses or deductions.
2-Salary calculation
Calculate each employee’s salary before applying any increases or deductions. This is usually done by performing a simple calculation consisting of multiplying the number of working hours by the rate of wage increase.
3. Calculate and apply increments.
Calculate increases, such as bonuses or advances, and apply them to the salary.
4: Calculate and apply deductions.
Calculate deductions such as taxes, insurance, retirement account payments, etc., and any deductions resulting from violations such as absence, and apply them to the salary.
5-Calculate net pay
Calculate the final salary the employee will receive in the current pay period after applying increases by adding them to salary and deductions by subtracting them from salary.
6. Set up payment notifications.
A payment notification is a document containing details of an employee’s salary that is provided to employees along with the salary and includes deductions and the final salary.
7-Salary distribution
Distribute salaries on time in accordance with company policies, whether in cash, checks, or bank transfers.
8-Keep records
Keep all payroll records you create secure for reference at any time and use them for tax, financial reporting, and other purposes.
Payroll issuance times in Saudi Arabia
For Saudi Arabia, the maximum date for issuing government employee salaries is at the end of work on the 20th of every Gregorian month, according to what the Ministry of Finance has set for government agencies. In general, the times for raising individual salaries and delivering employee payrolls vary in accordance with the policies of each company or facility and its business needs. The company may choose one of the following dates for raising civil employee salaries:
- Every month: The payroll sheet is released once a month, often on the last day of the month.
- Bimonthly: It is issued twice a month, once in the middle of the month and once at the end.
- Biweekly: Released every two weeks.
Employee payroll template 1445
The Excel employee payroll template is provided to you through the following link: Saudi employee payroll template.
Why is Qoyod the best accounting system for creating payroll sheets?
The Qoyod system is the best accounting program in the Kingdom of Saudi Arabia. It is easy to use, provides professional accounting services, and is accredited by the Zakat, Tax, and Customs Authority. It plays a crucial role in creating the payroll sheet in particular by providing a set of features and improvements that contribute to simplifying and improving payroll management, as follows:
4-Increase accuracy
Qoyod contributes to reducing the risk of human errors in the processes of calculating salaries, increases, and deductions.
5: Saving time and effort
Qoyod is an easy-to-use program that saves a lot of time and effort spent on calculating wages and creating a payroll sheet.
6: Payroll receipts feature
Qoyod provides salary receipts feature to display employees’ financial data before payment, including the employee’s name, month, entitlements such as monthly salary, allowances and bonuses, and deductions such as advances, absences or lost time, and savings funds.
7: Easily create payroll sheets.
It allows creating a payroll sheet very easily from the drop-down menu on the right of the screen, then choosing payroll, then clicking on the payroll sheet. It creates a table for you in which you fill in the necessary details.
8-Reports preparation
Qoyod prepares accurate financial reports related to payroll to monitor financial performance and make the necessary strategic decisions.
Conclusion
It has become clear to you that the payroll sheet represents a vital aspect of companies and institutions, as it plays an essential role in ensuring that employees’ salaries are distributed fairly, accurately, and on time. Thanks to advanced technologies and cloud solutions, it has become easier than ever to manage payroll effectively with high levels of accuracy and security.
In this context, the Qoyod system offers you an integrated set of cloud accounting services. You can easily try creating employee payroll in your facility with Qoyod by subscribing to Qoyod and enjoying a completely free trial period of 14 days without a credit card, in addition to trying all other accounting services. Don’t hesitate and join the Qoyod accounting system today!
