Payroll Accounting & Salary Statements: What Really Matters

Why Is Well-Functioning Payroll Accounting So Important?

Payroll accounting is a central component of every company’s financial structure. It ensures that all salary statements are correct, on time, and legally compliant when created and submitted. This is not just about transferring wages—it is also about:

• Social security notifications
• Remittance of wage tax to the tax office
• Vacation and sick days
• Special payments such as Christmas bonuses or other bonuses

The Most Common Errors in Payroll Accounting

In practice, we repeatedly see how incorrect or delayed payroll accounting leads to problems—for example, with the tax authorities, social security, or even with your own employees. Typical pitfalls include:

• Incorrect tax classes or social security contributions
• Missed deadlines for social security or ELSTER notifications
• Undocumented special payments
• Missing evidence for mini-jobs or short-term employment

Therefore: Anyone doing payroll themselves needs up-to-date knowledge, reliable software, and a secure process.

 

Statutory Requirements: What Is Mandatory?

As an employer, you are obliged to issue a correct salary statement every month. This must include the following information, among other things:

• Gross and net wages
• Wage tax and church tax
• Social security contributions
• Surcharges, deductions, and benefits in kind
• Employer contributions to social security

Furthermore, notifications must be submitted to:

• the health insurance funds,
• the tax office (via ELSTER), and
• if applicable, the employers’ liability insurance association

on time and electronically.

In-house or Service Provider – Which Is More Worthwhile?

Companies often face the decision: Create payroll in-house or outsource?

Doing payroll yourself – Advantages:

• Full control
• Short-term changes can be implemented yourself
• More cost-effective with a small number of employees

Outsourcing payroll – Advantages:

• Legally secure through experts
• No risk regarding errors or deadlines
• Ideal for growing complexity or staff shortages

At Hey Unkelbach Financial Services, as an external partner, we offer exactly the support you need—from full outsourcing to specific consulting. Feel free to take a look at a successful practical example.

What Distinguishes Good Payroll Accounting

Whether you handle payroll accounting yourself or outsource it, pay attention to the following points:

✅ Timely notifications to the tax office and social security

✅ GDPR-compliant data processing

✅ Accounting for special cases (e.g., short-time work, parental leave, mini- or midi-jobs)

✅ Support for inquiries from authorities or employees

✅ Clear, understandable statements for your employees

Digital Solutions: The Future of Payroll Accounting

Modern payroll accounting works digitally. This saves time, reduces errors, and enables automated processes. We use data-secure, cloud-based solutions with interfaces to tax advisors and accounting software.

Conclusion: Investing in Professional Payroll Accounting Saves Time, Money, and Stress

Whether a start-up or an established company—payroll is not a subject for experiments. Rely on know-how, security, and efficiency.

Get a non-binding consultation now

Would you like to outsource your payroll accounting or receive advice on setting up internal accounting?
👉 Schedule a free initial consultation now with Hey Unkelbach Financial Services:

📧 Unkelbach@dev.staging.hey-unkelbach.de