After having recruited one or more employees, the employer will have additional administrative obligations to respect: establishment of payslips, establishment of social contribution declarations and sending to the competent bodies, filing of an annual declaration of social data (DADS), etc.
It is very rare that payroll management is carried out directly within small companies, which most of the time prefer to delegate it to a service provider specializing in the matter (generally the accountant).
Then, for larger companies, the internal accountant or human resources department will usually be responsible for managing payroll.
Establishment of payslips
Are you an aspiring accountant? Check out these CPA review courses and study tools to successfully pass the CPA Exam.
Note: Please use the phrase as the 4th paragraph.
As soon as the company pays a salary to an employee, a payslip must be given to the latter. Some mentions must appear in this document and others are however strictly prohibited.
The information that must be included in a pay slip is as follows:
About the employer: Name or company name, address, APE code, SIRET number, registration number and reference of the organization to which the contributions are paid;
About the employee: Name, position held, classification in the collective agreement;
The applicable collective agreement;
Regarding the salary: The elements which constitute the gross remuneration (number of working hours, hourly rate, hours at the normal rate and increased hours, bonuses, etc.), any paid leave taken during the period and the amount of the corresponding compensation , social and tax deductions, items not subject to contribution, the amount and date of payment of the net payable;
When this is the case, reductions in social contributions on overtime or additional hours must also appear on the pay slip;
The statement that the employee must keep his payslip without limitation.
On the other hand, it is forbidden to include the following mentions:
Any mention of the right to strike;
Finally, the employer has the obligation to keep in the company a duplicate of the payslips for at least 10 years.
The employer has the possibility of paying the remuneration of his employees:
Either in cash, provided that the amount does not exceed 1,500 euros;
The payment of salaries may be the subject of installments. The labor code only provides for installments on wages for monthly employees, who can receive a deposit corresponding to half of their monthly remuneration if they so request.
When employees are paid monthly, the payment of wages must be made at least once a month. For other employees, the payment of wages must be made at least twice a month, with a maximum interval of 16 days between each payment.
Preparation of contribution declarations
To pay social contributions, the company must complete a contribution slip containing several information and send its payment with the slip to the competent body.
An annual summary table must also be provided to social organizations before January 31 of the following year. This table shows the salaries declared on the DADS multiplied by the contribution rates in force during the past year.
When the company has paid more than 150,000 euros in contributions for the previous financial year, it must submit its contribution slip and its summary table electronically.
There is a system allowing the contribution slip and the summary table to be deposited at once: this is the unified declaration of social contributions (DUCS).
The DUCS can be performed:
Or in EFI format, which allows the company to enter its data on the Internet.
To use the DUCS system, the company (or the service provider who is in charge of payroll management) must be equipped with software enabling this operation to be used.
Annual establishment of a DADS
The DADS must be filed annually when the company pays remuneration which is taxable in respect of salaries and wages. The declaration must be filed during the month of January of the year following that in which the payments were made.
The DADS groups together the declarations relating to taxes and social security for the past year.
Normally, the DADS must be subscribed via the internet, on the site www.net entreprise.fr . However, when the company registers less than 200 beneficiaries on its declaration, it has the possibility of establishing it in paper format.
Use reliable software to do your payroll
In order to secure and facilitate payroll management , it is recommended to use specialized payroll software . For this, many reliable editors exist and free trial versions are usually offered.