What is a Salary system?
A salary system is a tool that helps you and your employees better keep track of monthly wage payments.
For employers, it provides an overview of the total wage bill and individual salary specifications for employees. For employees, it offers the opportunity to have a personal online payroll system where they can see all previous pay stubs and specifications.
You can optimize the process of expenses with Acubiz
It may be advantageous to integrate your salary system so that relevant data flows more easily and automatically.
Why choose a salary system?
With tables and a macro or two, you could manage your salary in an Excel sheet yourself. However, there are many advantages – for you and your employees – in choosing a salary system that can handle everything for you.
First and foremost, errors are more likely to occur if you have to manage the payroll in an Excel sheet, and there will be a greater risk that the applicable legislation will not be complied with, which is, of course, important when it comes to employee salaries.
Easier to handle salary processing
There are many calculations, reports, and transfers to track when you have to pay your employees.
An advantage of an online payroll system is that it makes payroll processing easier because many processes and calculations run automatically. Typically, you only need to enter the company and employee basic information, after which you are ready to make payroll.
If your employees receive the same salary every month, you can also choose systems with automatic payroll processing, reporting, and transfers.
Examples of salary systems
Several different salary systems are already well-established in the market. Some examples of these salary systems are Dataløn, Lessor, and Proløn. These salary systems have in common that they can handle salaries and generate digital payrolls.
This way, you no longer have to keep track of a multitude of pay slips and documents, and instead, you will have your salary consolidated in one single system.
There are salary systems with different approaches and services. Therefore, it is a good idea to investigate the many systems on the market before choosing one so that you are sure to find one that is a good match for you and your company.
For example, salary systems cater to different types of businesses, where some can be used for free by companies with up to ten employees. Others are managed by a kind of subscription service, where you, as a user, have to pay for the salary system.
Requirements for your salary system
When choosing a salary system, there are often requirements that the system must fulfill. At a minimum, it should have the following functions:
- Calculation and payment of salaries (for both salaried and hourly employees)
- Salaries sent to employees’ e-Boks
- Reporting to eIndkomst (automatically)
- Reporting and transfer of AM contributions, ATP, A-tax, holiday pay, and pension (automatically)
- Transfer of contributions to the Maternity Fund (automatically)
- Reporting of payroll and absence statistics to Statistics Denmark and the Danish Employers’ Association
- Data transfer to the accounting system (automatically)
In addition, you can consider whether your company needs other functions. For example, the following may be helpful features to have:
- Automatic resetting in the months when you do not have to pay wages
- Taxation of employee benefits such as health insurance, product purchases, canteen, etc.
- Possibility to change the salary if there has been an error in a previous wage payment
- Departmental division so that an overview of salary expenses is formed for each employee group
Integration with salary systems
Integration with your company’s salary system will help you load, register, and export data for payroll processing. This could be in connection with reimbursement of outlays, travel deduction, and time registration.
This saves you a lot of time, as you do not have to enter salary items in the accounting system yourself. This also avoids typos in the bookkeeping.
You can read more about the benefits of integrations here and learn when to integrate.
Do you want to know more?
For many years, we have worked to digitize and optimize the process of expenses. With Acubiz, it is also possible to integrate with your salary system, making everyday life easier for employees and management.
Contact us if you want to know how we can help your business or book a free online demo to learn more.