How does payroll outsourcing work

Outsource or outsource payroll accounting

Payroll

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The outsourcing of payroll accounting becomes child's play with us

All employers need pay slips for their employees. The German trade regulations oblige them to hand them over to their employees. It is also essential for the employer's and employee's tax accounting.

In principle, entrepreneurs have different options for dealing with the relevant regulations. Large corporations have it done by an internal department, sole proprietors sometimes put this burden on themselves - with the high risk of errors, not to mention the workload.

Tax consultants also take care of payroll accounting, but be careful: It's not their core business, mistakes happen here too. You risk high additional demands from the tax office.

It is sufficient that you pay the salaries on the 15th, but the tax consultant's software “understands” the 1st of the month as the payment date and therefore incorrectly includes the payment in your annual tax return (sometimes twice). We know bad cases of back tax claims due to such inconsistencies.

The most elegant solution for your payroll accounting is outsourcing to specialized service providers such as the wage heroes. As an experienced payroll office, we are familiar with all facets of this accounting area - including the subtleties of building wage accounting, the differences between wages and salaries (depending on the working hours or the same for each month), overtime, part-time employment and mini-jobs.

We provide you with your pay slip from a single source. You will receive the full package from us at a fixed price. The basic standard evaluations are included. Overall, these include:

  • Personal data
  • Booking list
  • Billing gross and net
  • Contribution statements and contribution accounting (health insurance list)
  • LSt registration and certification
  • Payroll account and payroll journal
  • Executive overview of personnel costs
  • BG - reported annual values
  • Trade association list
  • Cost center values, cost unit values
  • Primanota
  • Change log (for the previous month)
  • Wage type values
  • Help list for health insurance companies
  • Short-time work for BfA and health insurance
  • Logs like the net payroll
  • Payment list
  • Company data maintenance and DEUEV logs
  • ELStAM history
  • SI notification / immediate notification
  • Transfer receipts

By the way, you can use our receipt app to facilitate data transfer. Send your documents safely and quickly! It's very easy to use: you simply take a photo of the documents with your smartphone, then upload the images to the app. This can be done with a hospitality receipt as well as with the personnel questionnaire.

Our app offers integrated document processing and a full text search in the scanned documents. With an automatic filing system, you always have a full overview. After the scan, the receipts can be viewed in the digital personnel files. The data transfer takes place via a password-protected, encrypted connection. The app fully complies with the standards of the GDPR (European General Data Protection Regulation) and the tax code.

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Payroll
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Comfort

  • "Bank Online" option with which the payment proposal lists are sent directly to your bank
  • Versond options by mail
  • Delivery options by post

Controlling

  • Individual evaluations
  • Multi-year comparisons
  • GDPdU annual file
  • Certificates ALG II & pension insurance

Human resource management

  • Recruiting
  • Digital personnel file
  • Creation of job references

Salary and wage accounting including all essential evaluations as a monthly download from € 6.90 per employee plus VAT or for € 8.90 per employee plus VAT

Complete service for pay slips at the payroll heroes

As an entrepreneur, you want one thing above all: to be able to rely on payroll. The Lohnhelden service offers you this reliability. Here, experienced experts work to ensure your success. Our packages include a highly personal service.

Among other things, you will receive your own payroll specialist whom you can address with any concerns. Our service is complete, we only need the data from you. In this way we ensure that your workforce always receives the pay slip on time. At the same time, your tax advisor - optionally also your own accounting - receives all the necessary evaluations.

The fact that specialists like the wage heroes take on such accounting today has something to do with the wages and salaries system, which has become more complex. Among other things, there may be annual changes in the legal regulations. Our employees therefore attend regular training courses. Added to this is her extensive experience, which also results from extremely complicated billing cases.

The basics are knowledge of tax, social security and labor law, and special collective bargaining regulations for different industries must be observed. The regulations for building wages and public services (TV-L, BAT, TVöD, AVR and others) are particularly complicated. Exact wage and salary accounts can only be created here with qualified specialist knowledge.

We are happy to help

Professional, personal, cost-optimized.
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free of charge & without obligation

Reliable service

You will receive our services precisely, you can then set the clock. We need a maximum of 72 hours for a certificate and a maximum of 48 hours for an invoice. Our service is very personal, because we focus on you as a person. We take your worries as seriously as if they were our worries.

This increases the satisfaction of our customers, which we would like to ask you as part of our active cooperation. We evaluate the results of such surveys: On the traditional school grade scale, we currently achieve an average of 1.6. You benefit from our competence: In a world of constantly changing regulations and laws, experience must be an important asset.

The Lohnhelden have been employing most of the employees for many years, because our internal satisfaction is also high, which lowers fluctuation. This means that our team's experience grows continuously. We have seen most of the tricky cases before. We currently employ over 100 experienced payroll clerks, so there are no staff shortages with us. The colleagues specialize in various areas of payroll accounting, such as normal or construction wages, as well as the public service. Tax advisors, law firms and accountants are also happy to use our services.

What do you need to know about payroll accounting?

The creation of wages and salaries for employees is a compulsory part of your bookkeeping. The numerous steps must be carried out in accordance with legal requirements.

The certificate itself is defined as a remuneration statement that employers must provide to their employees as a written document. For them, it is evidence of their earnings (net wage) as well as the wage / salary taxes and social security contributions included in the gross wage.

A company must issue the receipt as part of its secondary obligations to employees. The relevant regulations can be found in the trade regulations valid for all companies with their remuneration certification ordinance (§ 108 GewO). There you can also read which components a wage and salary statement must contain. Further legal bases for payroll accounting can be found in the following laws:

  • Income Tax Act: This regulates, among other things, the determination of the wage tax classes and all characteristics of the wage tax deduction.
  • Social Code: This is where you will find the relevant regulations for paying SV contributions to health, long-term care, pension, unemployment and accident insurance.

Payroll accounting tasks

  • Calculation of remuneration: The basis for remuneration is the monthly or annual gross salary plus other remuneration that the employer and employee have agreed in the employment contract. In a pay slip, all types of remuneration are added to the total gross amount. Wage taxes and social security contributions are deducted from this gross amount. The net income is calculated from this.
  • Calculation of the tax withholding: For this, the wage / salary account must first determine the gross tax amount. The tax class is based on the employee's marital status. A wage calculator can then determine the monthly tax deduction based on the gross salary with the current income tax tables of the tax offices.
  • Calculation of SI contributions: The key for this calculation is updated annually. You determine which SI contribution is to be deducted as a percentage from the gross SI for which insurance area. It is mandatory to show the respective employer and employee share for the tax and insurance types on the pay slip. After the SI contributions (like the tax) have also been deducted from the total gross amount, the actual net wage (payment amount for the employee) can be displayed.

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Payroll accounting as part of the sub-ledger

From an accounting point of view, the payroll is part of the so-called sub-accounting. Payments to employees, social security and the tax office are to be recorded in the accounts of the bookkeeping. This takes place in the form of collective documents (monthly journals), which in turn flow into controlling and BWA (business evaluation). In total, these personnel costs are an operating expense that is recorded in the journals.

The tax settlement

Three types of taxes are relevant for payroll:

  • income tax
  • Church tax for employees with religious affiliations
  • Solidarity surcharge

We only need wage tax for the payroll accounting. The other types of tax are so-called annex taxes (= surcharge taxes), their amount is derived from the amount of wage tax. For wage taxes, there are annual wage tax tables that show the tax portion of the employee's gross wage and tax bracket. In Germany (and most countries) there is a progressive taxation: the higher the gross wage, the higher the tax percentage up to the top tax rate.

Further tasks in the context of payroll accounting

Employees receive their monthly pay slip and, at the end of the year, the electronic income tax certificate for their own income tax return. We also manufacture these. We record changes in the tax class if something changes in the marital status of an employee (ELStAM) and calculate sickness and maternity benefits.

Special cases of payroll are special payments and payments in kind. This includes the company car, capital-building benefits or tax-deductible direct insurance. We also take into account special situations for the company such as the payment of short-time work benefits. Special cases are part-time jobs and student jobs as well as industry-specific, mostly tax-deductible supplements for night, Sunday and holiday work. In addition, advance wages, severance payments, benefits in kind and employer loans must be taken into account.

The ELStAM procedure

The "E.electronicL.withoutSt.your-A.referentialM.features ”(ELStAM) are the electronic data exchange procedure that has been in force since 2013. Since then, employees have been recorded in a central EDP with the tax-relevant data and can be found using their tax identification number. Companies must take part in ELStAM and register their employees for it.

Conclusion: payroll office is worth it

At Lohnhelden, we see ourselves as a specialist service provider who relieves our clients with payroll accounting. Our focus is on personal service, reliability, competence and dependability.

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