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How to manage payroll in Brazilian companies

Posted 2022-06-10 Payroll Managment in Brazil / Gestão de folha de pagamento no Brasil

A relevant aspect that every foreign investor needs to know  is employee payroll. With so many legal issues and bureaucratic processes, hiring a human resources company in Brazil  can be an advantageous solution. 

A human resources management company in Brazil  knows all the procedures and rules to manage tax payments and collections. In this way, the working relationship between company and employees is established with security and peace

In addition, knowing the local rules on payroll management  ensures compliance with labor legislation, as provided for in the Brazilian Consolidation of Labor Laws (CLT)

What is Payroll Management?


In summary, the payroll is an accounting document  that includes the work activities of each employee. In this document, then, the monthly remunerations, bonuses and gratuities  are included. 

In addition to showing the amount of gross and net salary, the payroll shows tax discounts such as IRRF, INSS, FGTS, among others. In other words, the payroll has a very high accounting and fiscal importance. 

How to manage payroll? 


There are some rules that help in the preparation of the payroll  and in the more efficient management of this document. Among them are the time control of employees and the automation of management.

Take control of your employees


The preparation of the payroll is based on the calculation of the hours worked by each employee. Exactly because of this factor, it is essential to have an efficient time control, which allows calculating all the hours worked, including overtime. 

Payroll automation


The ideal way to generate the payroll is by using computerized systems. The market offers a wide range of software to automatically generate documents for each employee. 

It is enough for the person responsible for human resources to register the information regarding salaries, and the system itself does the rest. 

Keep a specific bank account for payments


Your company must maintain a bank account intended exclusively for making employee payments. So don’t mix personal bank accounts with your business accounts. 

By making this distinction between accounts, the money is prevented from being used for another purpose. Not to mention that the use of an account for payments facilitates the verification of data  and information in case of inspection.

Extra tip: create a routine for delivering monthly payroll statements. And record deliveries whenever possible.

Why count on a partnership in the management of human resources in Brazil?


Payroll is one of the most important documents when we think about human resources management. Therefore, it is essential to have good control over it, since any mistake in the calculations can generate undue discounts on the worker’s payslip.

In addition, problems with the payroll also sometimes culminate in the erroneous collection of taxes such as:

  • Income tax;
  • Social Security (INSS);
  • Severance Indemnity Fund (FGTS). 

Even the company’s cash flow can be hampered by poor payroll management. For these reasons, have a partner specialized in Brazilian accounting  and human resources in Brazil.

Europartner is your ideal partner to manage your company’s accounting in Brazil, organizing all the legal aspects for your company to operate safely, according to local laws, and achieve success.

Get in touch with our team  and learn about our successful cases in accounting for foreign investors in Brazil!

Author's post: Europartner Accounting