Finance Help

Business Administration: The Payroll Administration

The Payroll department is an important department at companies. Of course, all departments are important. But for employees this is one of the most important departments, because they ensure that they receive the right salary in time.



The payroll department processes all transactions each month. This then concerns matters such as salary increases. But there are also changes when a staff member starts to work more or less, takes parental leave or takes care leave. The commuting allowance can also be adjusted if an employee moves or if someone is ill for a long period, then this reimbursement will no longer apply. But this is not everything. Every year the pension premium changes or other premiums change, these changes must also be implemented. So, it is a race against the clock every month for this department to have all transactions processed in time.

In December and January, they often have extra pressure, because extra changes as a result of adjustments to the premiums have to be made. This change in premiums applies to all employees, so that is a very busy period for the employees of the payroll administration. This department is therefore very busy for about two weeks a month (just before the payment date), then it is two weeks quieter and then the crowds start again. That’s how that month goes out in months. Employees with questions about their salary also come to this department. An employee of the payroll administration is therefore also the point of contact when it comes to salaries.


Many companies pay the salaries of their employees on a fixed date. For example, on the 20th or 1st of the month. Often, weekends and / or holidays are taken into account. If the payment date falls exactly on the weekend or on a public holiday, most companies pay a little earlier. There are also companies that pay the salary even a few days earlier around Christmas, so that everyone has his or her salary well before Christmas. Previously everyone was sent a pay slip at home, but nowadays that is no longer the case with many companies. Employees can then log into a personal portal and can view their pay slip (and other personal documents / data) there. The annual statement is often no longer sent. This is also stored on the personal portal. An employee then has all the data neatly together. He can always view this information and print it if necessary.

Kind of people

Employees who have a lot of affinity with numbers are working on the payroll administration. They must be able to work very precisely, because after all it is about the salary of an employer. This must be good. The payroll administration is therefore an important department!