What is Payroll? How is Payroll Calculated?
Payrolls are arranged by the employer every month and the insurance deductions, tax deductions, advances, working hours, amounts should be found in detail. Since it is an official document by both the employer and the employee, it is very important that it is regulated in accordance with the requirements of the relevant laws. HOW IS THE PAYROLL CALCULATED?
While calculating the payroll, the deductions to be made and their order are important.
First of all, the social security base should be determined, and the income tax base should be reached by finding the social security premium employee share and unemployment employee share.
Then, the income tax should be calculated over the increasing proportional income tax tariff, the stamp tax should be reached on the gross wage, and the legal deduction amounts (SGK employee shares, income tax and stamp tax) should be determined.
If there are special deductions as per company policy, these amounts should be taken into account.
In summary: Gross wage- Legal deductions- Special charges = Net wage is reached.
According to the situation of the person, the amount of AGI should be checked and this amount should be added to the net wage and paid to the employee by the employer.