What is Salary Payroll? How Is It Calculated?

What is Salary Payroll?

Salary payrolls are documents that the employer is obliged to fully show the payments, taxes and deductions made to his employees in return for his labor and which are systematically arranged during the employee's employment contract. Since the payroll is also a document that proves the amount that the employee will regularly receive from the employer, it is a document that requires meticulousness in the preparation phase. While preparing the payroll, the information requested in accordance with the Labor Law numbered 4857, the Social Insurance and General Health Insurance Law numbered 5510 and finally the Tax Procedure Law number 213 should be taken into consideration, and the correct information should be declared meticulously and accurately. Since payroll is an official document and is used by both the employee and the employer when necessary, let's examine which law requires which information while issuing this document ...

According to the Labor Law, those that should be included in the payroll;

1. Worker's name and surname

2. The day the payment is made and the period it is in

3.The amount of any additions to the original wage, such as extra work, weekend breaks, holidays and general holiday fees.

4. Amount of tax, insurance premium, advance deduction, alimony and execution and all similar deductions

5. Wage payment day

6. Signature of employer

According to the Social Insurance and General Health Insurance Law, those that should be included in the payroll;

1. Registration number of the workplace

2. The month and period the payroll belongs to

3. Name and surname of the insured

4. Social security registration number of the insured

5. Total number of days paid

6.Wage of the insured

7. Amount of fees paid

8.Signature of the insured showing that the fee has been received.

According to the Tax Procedure Law, those that should be included in the payroll;

1. Name and surname of the employee, signature or stamp showing that the remuneration has been received.

2. Date and number of tax card, if applicable

3.Unit fee (monthly, weekly, daily, hourly or per piece fee)

4. Working time or the period to which the wage belongs

5. The amount of taxes calculated on the wage

How to Prepare a Payroll?

In fact, we know that payroll calculation, which requires simple mathematics, becomes complicated when the correct steps are not followed. For this reason, you can find the ways to follow while preparing the payroll below.

Deductions to be made from the worker;

1. SSK premium worker's share = Gross wage x 14%

2. Unemployment insurance worker's share = Gross wage x 1%

3. Basis of income tax = Gross wage - (SSK employee share + unemployment insurance employee share)

4. Income tax amount = Income tax base x 15%

5. Amount of stamp tax = Gross fee x 0.00759

6. Sum of deductions = Workers 'share + unemployment insurance workers' share + Income tax + Stamp tax

7. Net wage = Gross wage - Sum of deductions

Deductions to be made from the employer;

1. SSK Premium employer's share = Gross wage x 15.5% (with a 5% discount incentive)

2. Unemployment insurance employer's share = Gross wage x 2%

Payroll Calculation Example

Below you can find a sample payroll for 2021 minimum wage employees.

Gross Minimum Wage: 3.577.50

Workers' Share (15%): 536.63

Income Tax Base: 3.040,88

GV Deduction (15%): 456.13

DV Deduction: 27.15

Net Fee: 2.557,59

AGI: 268,31

Net Fee To Be Paid: 2.825.90

Employer's Share (22.5%): 804.94

Cost to Employer: 4.382,44

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