Properly preparing payroll involves more than simply entering salaries into a program. Each month, the payroll department needs to receive up-to-date information on the workforce, including contract changes, incidents, absences, hours worked, variable compensation, sick leave, and any other data that may affect salary, social security contributions, or income tax withholding.
When that information arrives late, incomplete, or scattered across emails, messages, and calls, errors arise: corrected payrolls, employees receiving incorrect amounts, discrepancies in social security contributions, problems with tax forms, and wasted time on audits. Therefore, for any company with employees, knowing what information an accountant needs to prepare payroll each month is key to professionalizing human resources management.
At MGI Àmbit, a law and economics firm in Barcelona specializing in labor, tax and accounting advice for companies, we help HR departments, financial directors and business groups to streamline the monthly payroll process to make it more agile, reliable and secure.
Quick summary
- What the consultancy needs: staff data, contracts, new hires, terminations, changes in working hours, variables, absences, sick leave, holidays, garnishments, advances and final validation.
- When to send it: with a clear monthly closing date, ideally before calculating the final payroll.
- Who should validate it: HR, administration or management, depending on the size of the company.
- What is avoided: payroll errors, recalculations, internal claims, contribution differences and problems with withholdings.
- Objective: to enable the consultancy to calculate payroll, social security, withholdings and labor reports without last-minute improvisations.
Why is monthly information so important for calculating payroll?
Payroll is the result of many variables. Base salary and agreed-upon bonuses are only part of the calculation. Each month, changes can occur that modify the final result: an employee's contract starts or ends, another changes their work schedule, another is on sick leave, another has worked overtime, another has a wage garnishment, or another has an outstanding commission.
Labor consultants cannot perform accurate calculations without knowledge of these issues. They also cannot properly apply contribution bases, deductions, exemptions, or withholdings without complete information validated by the company.
The payroll connects salary, Social Security and Income Tax
Each payslip affects three areas simultaneously:
- Work situation: agreed salary, collective agreement, working hours, bonuses, permits, holidays and absences.
- Social Security Plan: contribution bases, stages, situations of registration or deregistration, temporary disability, overtime and settlement of contributions.
- Tax matters: IRPF withholdings, communication of personal and family data, form 111 and annual summary 190.
Therefore, a seemingly minor incident can have cascading consequences. A late notification of a change in working hours can affect salary, social security contributions, withholding tax, and the month's labor costs.
The most common mistake: sending only “what has changed” without a structure
Many companies only send their accountants the incidents they remember: "this employee worked overtime," "this person was on sick leave," "there's a sales commission." The problem is that, without an organized communication system, something always gets left out.
The best practice is not to rely on memory, but to work with a monthly payroll checklist. This checklist allows you to confirm that all critical areas have been reviewed before closing the month.
Does your company send payroll incidents without a clear system? At MGI Àmbit we can help you streamline the monthly process, reduce errors and professionalize your workforce management.
Checklist: Information that the consulting firm needs each month to prepare payroll
The following checklist summarizes the information a company should send to its payroll advisor before the monthly payroll close. Not all companies will have all of these issues every month, but it is advisable to review them systematically.
| Information block |
What the company should review |
Why does it affect payroll? |
| New hires and new contracts |
Start date, contract, working hours, salary, position, workplace, collective agreement, professional group and personal data. |
It allows you to calculate proportional salary, Social Security registration, initial withholding and labor cost. |
| Employee departures |
Termination date, reason, notice period, outstanding vacation days, extra payments, compensation if applicable and final settlement. |
Determine the final settlement, the balance receipt and final payment, and the termination notice. |
| Contractual changes |
Changes to working hours, salary, category, center, type of contract or agreed conditions. |
It can alter salary, social security contributions, personal income tax, applicable collective agreement, and employment record. |
| Overtime and supplementary hours |
Number of hours, date, authorization, type of time and compensation in money or time off. |
It affects gross salary, additional contributions, and working hours control. |
| Variables, bonuses and commissions |
Approved amounts, accrual period, affected employee, and payment criteria. |
It increases the monthly payroll and can modify withholdings or contribution bases. |
| Absences, leaves and holidays |
Days taken, justified absences, paid leave, unpaid leave and pending vacations. |
It can affect salary, accrual of vacation time, and the proportional calculation of items. |
| Sick leave and temporary disability |
Dates of discharge, confirmation and discharge, contingency, relapses and available parts. |
Determine benefits, agreement supplements, contribution bases and company costs. |
| Per diems, mileage and expenses |
Amounts, supporting documents, reason for travel, dates and applicable internal policy. |
It allows differentiating between salary, non-salary, taxable and non-taxable concepts. |
| Seizures and advances |
Seizure orders, outstanding amounts, advances granted and authorized discounts. |
It affects the net income received and must be correctly reflected in deductions. |
| Remuneration in kind |
Vehicle, health insurance, housing, tickets, training, shares or other benefits. |
It can affect salary, social security contributions and income tax withholding. |
Initial information that the consultancy should have before starting to manage payroll
Before discussing monthly incidents, there's an initial database that the consultancy must have correctly configured. If this starting information is incorrect, all subsequent months will carry errors.
Company details
The consultancy needs to know the legal and labor structure of the company: company name, NIF, contribution account code, work center or centers, applicable collective agreement, work calendar, method of payment, bank account of charge, internal authorization system and those responsible for validation.
In companies with multiple subsidiaries, branches, or work centers, this point is especially important. It's not enough to know "how many employees there are"; you need to know which entity they are employed under, which collective bargaining agreement applies, and what specific circumstances exist at each location.
Data for each worker
For each employee, the consulting firm must have a complete employment record. This record should include:
- Name, surname, ID card, NIE or passport.
- Social Security affiliation number.
- Registration date and recognized seniority.
- Type of contract and working hours.
- Professional group, category or position.
- Gross annual or monthly salary and distribution of payments.
- Work center and department.
- Bank account for payment.
- Model 145 for communication of data to the payer.
- Special conditions: bonus, flexible compensation, additional payments, individual agreements or voluntary supplements.
Collective agreement and remuneration policy
The collective agreement determines essential concepts: base salary, bonuses, extraordinary payments, annual working hours, permits, temporary disability supplements, allowances, seniority, night work, holidays and other economic rights.
The advisor needs to know which collective bargaining agreement applies and whether the company has internal agreements, collective bargaining agreements, or more favorable conditions. This information prevents errors in job categories, agreement arrears, mandatory supplements, and severance pay calculations.
Practical tip: If the company changes its collective bargaining agreement, opens a new workplace, adds a new activity, or modifies its salary structure, it must inform the payroll service before finalizing the month's payroll. This is not a minor issue: it can affect the entire workforce.
Monthly information on new hires, terminations and staff changes
Registrations, terminations, and changes in employee data are among the most sensitive parts of the process. An incorrect date or late notification can lead to errors in social security contributions, incorrectly calculated proportional payroll, or problems with the Social Security Administration.
New additions
When a new employee joins the company, the advisory team needs to receive the necessary information before they begin providing services. The minimum package should include:
- Actual start date.
- Personal data and Social Security number.
- Position, functions and professional group.
- Applicable agreement.
- Type of contract and expected duration.
- Working hours, schedule and weekly distribution.
- Gross salary and extra payments.
- Trial period, if any.
- Workplace.
- Bank account and form 145.
The clearer this information is, the less risk there will be of errors in the registration, the contract, and the first payroll.
Voluntary resignations, dismissals and contract terminations
When an employment relationship ends, the advisor needs to know the exact reason, the effective date, and any outstanding payments. A voluntary resignation is not the same as the end of a temporary contract, a disciplinary dismissal, a dismissal for objective reasons, or termination due to failure to pass the probationary period.
To properly prepare the final settlement, you must communicate with:
- Date of discharge.
- Cause of extinction.
- Accrued but unused vacation time.
- Outstanding bonus payments.
- Pending variables, commissions or bonuses.
- Notice given or not given.
- Compensation, if applicable.
- Company material pending return, if it affects internal settlements.
Variations during the month
All changes that do not involve hiring or firing, but do affect payroll, must also be reported: changes in working hours, extensions or reductions of hours, salary changes, transformation of temporary contracts to permanent contracts, modifications of position, transfers of centers or changes of collective agreement.
Monthly incidents that directly affect payroll calculation
Most payroll errors are not caused by fixed salaries, but by variable monthly occurrences. This is information that the accounting firm cannot access unless the company explicitly provides it.
Overtime, supplementary hours and time records
Overtime and supplementary hours must be authorized, recorded, and properly reported. The accounting firm needs to know how many hours were worked, on what dates, by which employees, and how they should be compensated.
In part-time contracts, supplementary hours require special monitoring because they affect compliance with the agreed working hours. In full-time contracts, overtime hours may be subject to specific pay and social security contribution treatment.
Commissions, incentives and bonuses
Variable costs must be validated. Sending an approximate figure is not enough. The consulting firm needs to know:
- Gross amount to pay.
- Period to which it corresponds.
- Affected worker or department.
- Accrual criterion.
- Whether it is recurring, occasional, or extraordinary.
This information is important to correctly calculate the monthly payroll and avoid future discrepancies regarding accrual, payment, or contributions.
Holidays, leaves and absences
Vacation days taken, paid leave, and absences must be reported before the closing date. The accounting department needs to distinguish between excused absences, paid leave, unpaid leave, vacations, unexcused absences, and contract suspensions.
An error in this classification can lead to an overpayment or an incorrect discount. It also affects the tracking of outstanding vacation days and the calculation of final settlements.
Temporary disability, maternity, paternity and other protected situations
Sick leave and situations involving suspension or benefits require special attention. The company must inform the advisor of the start, confirmation, and return-to-work dates, as well as any available time off and the applicable contingency.
In these cases, it's also important to check if the collective bargaining agreement requires the benefit to be supplemented up to a certain percentage of the salary. This information can significantly affect the net pay and the company's costs.
Financial information that must be validated before closing payroll
The consulting firm can calculate the payroll, but the company must validate the variable amounts and internal financial decisions. Otherwise, the calculation will be technically correct but may not align with company policy.
Authorized advances, loans and discounts
If the company grants advances or loans to employees, it must disclose the amount, the repayment schedule, and the reason for the deduction. It must also report any deductions authorized by the employee or internal agreements that affect the net pay.
Wage garnishments
Garnishments are a critical issue. The accounting firm needs to receive the complete garnishment order, the issuing agency, the total amount, the outstanding balance, and any updates. The garnishment calculation must comply with legal limits and be correctly applied to payroll.
Per diem, mileage and travel expenses
Per diems and expenses must be documented. The company must indicate dates, destination, reason for travel, amounts, and supporting documentation. It is also advisable to differentiate between reimbursable expenses and items that actually constitute compensation for the employee.
Flexible compensation and social benefits
Health insurance, meal vouchers, childcare, transportation, company vehicles, housing, training, or stock options can all affect payroll, social security contributions, and withholdings. The advisor needs to know the value of the benefit, who receives it, from when, and under what conditions.
A well-calculated payroll starts before the end of the month. At MGI Àmbit, we help companies in Barcelona and throughout Spain create a clear system for communicating issues, validating variables, and avoiding constant corrections.
Tax information needed to correctly calculate personal income tax (IRPF)
Income tax withholding from payroll should not be improvised. The amount withheld depends on the expected salary, the duration of the contract, the employee's personal and family circumstances, salary variations, and other circumstances reported during the year.
Model 145 and personal changes of the worker
Form 145 allows employees to provide their employer with personal and family information that may affect withholding tax. The employer must have this document at the start of the employment relationship and receive updates whenever there are relevant changes.
Changes that must be reported include the birth of children, disability, dependent ascendants or descendants, compensatory pensions or alimony payments, changes in family status, and other tax circumstances.
Expected annual compensation
To calculate the withholding tax rate, the tax advisor needs to know the annual compensation forecast: fixed salary, bonuses, anticipated variable compensation, commissions, and benefits in kind. If a salary increase or an unexpected bonus is approved mid-year, it's advisable to review the withholding tax rate.
Workers with multiple employers or special situations
In some cases it is advisable to review the withholding with special care: workers who join mid-year, employees with high variable remuneration, expatriates, administrators, working partners, international posters or people who have had other payers during the year.
Employment and documentary information that should be kept each month
Preparing payroll is not just about calculating amounts. It also involves keeping sufficient documentation to justify the results to employees, auditors, the Labor Inspectorate, Social Security, or the Tax Agency.
| Document |
Who provides it |
Utility |
| Work schedule |
Company / HR. |
It allows verification of work hours, overtime, absences and compliance with schedules. |
| Discharge forms, confirmation and discharge |
Employee / Company |
They are used to calculate temporary disability and benefits. |
| Authorization for overtime or supplementary hours |
Direct supervisor / HR. |
Avoid unvalidated payments or subsequent conflicts. |
| Supporting documentation for meal allowances and mileage |
Worker / administration |
They allow for the correct classification of expenses, allowances, and reimbursements. |
| Communication of variables |
Management / Sales / HR. |
Justify bonuses, commissions, and incentives. |
| Seizure orders |
Public body / court |
They allow mandatory deductions to be applied correctly. |
| Updated Model 145 |
Worker |
It is used to correctly calculate the IRPF withholding. |
Recommended schedule for sending monthly payroll information
One of the best ways to avoid errors is to establish a stable schedule. Each company can adapt it to its size and payment date, but the process should always be the same: collection, review, calculation, validation, payment, and filing.
Between the 1st and the 15th: compilation of incidents
During the first half of the month, HR or administration must record incidents as they occur: absences, vacations, sick leave, new hires, changes in working hours or approved variables.
Between the 20th and 25th: internal closure of incidents
It is advisable to set a deadline for reporting issues to the advisor. Anything received after that date should be treated as an exception or postponed until further notice, except in urgent cases.
Between the 25th and payment: calculation and validation
The payroll service calculates the payroll and sends a draft for review. The company must validate the amounts, the employees included, net pay, variable pay, deductions, and terminations. This review is crucial: the service may detect technical errors, but the company must confirm that the internal decisions are correct.
After payment: filing, reporting and subsequent obligations
Once payroll has been processed, it's advisable to file receipts, supporting documents, labor cost reports, and incident reports. This information will be useful for social security contributions, withholdings, tax forms, internal audits, and future employee inquiries.
Common mistakes when sending payroll information to the accounting firm
Most errors are repeated month after month in companies that lack a clear procedure. Detecting them helps correct the process before they lead to complaints or penalties.
Sending information through too many channels
Email, WhatsApp, calls, Excel spreadsheets, loose notes, and forwarded messages all contribute to confusion. Ideally, a single channel or a monthly incident template should be established to keep everything organized.
Do not validate variables before sending them
Commissions and bonuses must be approved beforehand. If provisional amounts are sent and then change, payroll must be recalculated. This is time-consuming and increases the risk of errors.
Reporting cancellations or new hires outside the deadline
Registrations, cancellations, and changes have a direct impact on Social Security. Reporting them late can lead to administrative issues and incorrect payments.
Failure to report changes in working hours or salary
A change in working hours affects salary, contribution bases, vacation time, withholding tax, and social security contributions. If communicated late, it may require adjustments to payroll already paid.
Confusing reimbursable expenses with salary
Not all payments to employees are treated the same. Per diems, mileage allowances, reimbursements, bonuses, and other forms of compensation can vary. The accounting firm needs to know the reason for the payment and have supporting documentation.
Practical template for sending monthly incident reports to the advisory service
A simple template can save many hours of review. The company should send a document each month with fixed blocks like the following:
Monthly payroll checklist template
- Payroll month: indicate the period to be calculated.
- Registrations: new employees, start date, contract, working hours, salary and center.
- Terminations: employees whose employment ends, date, reason, and pending vacation days.
- Changes: work schedule, salary, category, center, agreement or conditions.
- Variables: bonuses, commissions, incentives and extraordinary extras.
- Hours: overtime, supplementary hours, night hours, holiday hours or on-call hours.
- Absences: holidays, leave, justified and unjustified absences.
- IT and benefits: sick leave, confirmations, discharges and maternity/paternity.
- Discounts: advances, loans, garnishments and other deductible items.
- Expenses: meals, mileage and reimbursements with supporting documents.
- Validation: responsible person who confirms that the information is correct.
What should the company review before approving payrolls?
Once the payroll company sends the draft payroll, the company shouldn't just look at the total amount due. The review should be methodical.
| Item to review |
Control question |
| Template included |
Are all the workers who are due to be paid included, and have those who left the company been excluded? |
| Net amount to be received |
Are the net amounts consistent with the previous month and with the reported incidents? |
| Variables |
Have commissions, bonuses, allowances, and hours been included correctly? |
| Absences and holidays |
Have the days taken or deducted been correctly reflected? |
| Sick leave |
Are the benefits and supplementary payments under the collective agreement being applied correctly? |
| Withholdings |
Are there any relevant changes to personal income tax due to increases, variables, or new circumstances? |
| Company cost |
Does the total labor cost fit with the budget and forecasts? |
If each payroll closing becomes a race against time, the problem isn't just the workload: it's the process. At MGI Àmbit, we design monthly payroll workflows so that HR, administration, and consulting can work with clear data and defined deadlines.
How can a labor consultancy help to professionalize the process?
Good consulting services do more than just calculate payroll. They also help companies define what information needs to be sent, when it needs to be sent, who needs to validate it, and how it should be stored. This organizational aspect is especially important for growing companies, business groups, and companies with high turnover or many variable costs.
Definition of the monthly calendar
MGI Àmbit can help establish a closing schedule tailored to the company: incident deadline, calculation date, review date, payment date, and report submission date.
Creating incident templates
A well-designed template reduces errors and prevents omissions. It can be adapted to each company according to its sector, collective agreement, number of employees, type of work schedule, and compensation structure.
Coordinated labor, tax and accounting review
Payroll doesn't just affect HR. It also has accounting, tax, and financial impacts. That's why having a multidisciplinary firm allows you to connect payroll information with accounting entries, tax forms, cost reporting, and cash flow forecasts.
Support for complex incidents
Extended sick leave, garnishments, collective bargaining agreement arrears, variable bonuses, relocated workers, part-time contracts, or changes of workplace require technical expertise. Specialized advice reduces the risk of applying improvised solutions.
Conclusion: A good payroll starts with good information
The quality of a payroll depends directly on the quality of the information received. If the payroll service has complete, organized, and validated data, the monthly calculation will be faster, more reliable, and easier to review. If the information arrives late or incomplete, the risk of error increases, even if the technical team is excellent.
Therefore, companies that want to professionalize their labor management must work with a clear monthly system: incident checklist, closing calendar, validation managers, supporting documentation and final review before payment.
In an increasingly demanding work environment, payroll can no longer be managed haphazardly. It is a critical element of employee relations, regulatory compliance, and the company's financial control.
Contact MGI Àmbit, experts in payroll management for companies in Barcelona
MGI Àmbit is a Barcelona-based law and economics firm offering comprehensive labor, tax, accounting, legal, and financial advisory services to companies, business groups, and the self-employed. Our team helps companies manage payroll, contracts, social security contributions, withholdings, labor costs, and internal procedures with technical expertise and a business-oriented approach.
If your company needs to streamline monthly payroll information, reduce errors, improve coordination with HR, or outsource payroll management with confidence, MGI Àmbit can help. We analyze your situation, design a process tailored to your staff, and support you month after month so that payroll management is no longer a recurring problem.
Do you want your payroll to be prepared each month with fewer errors, fewer emergencies, and more control? Contact MGI Àmbit and we'll help you implement a clear, practical monthly payroll system tailored to your company.
Frequently asked questions about the information needed to prepare payroll
What monthly information does a consultancy need to calculate payroll?+
The consultancy needs information on new hires, terminations, changes in working hours or salary, absences, holidays, sick leave, overtime or supplementary hours, variable pay, commissions, allowances, advances, garnishments, in-kind compensation and any data that affects salary, social security contributions or income tax withholding.
When should payroll information be sent to the advisor?+
It's advisable to set a monthly closing date. Many companies use an internal closing date between the 20th and 25th, although this can vary depending on payroll and staff size. The important thing is that there's a clear deadline that everyone knows.
What information is needed when a new employee starts?+
For a new registration, you need personal data, Social Security number, start date, type of contract, working hours, salary, position, professional group, agreement, workplace, bank account, form 145 and any specific agreed conditions.
What incidents tend to cause the most errors in payroll?+
The incidents that generate the most errors are overtime reported late, unreported sick leave, changes in working hours without documentation, unvalidated variables, incorrectly recorded vacations, undeducted advances, and garnishments applied without complete information.
Should the company review the payroll before paying it?+
Yes. The consulting firm performs the calculations and technical review, but the company must verify that the additions, removals, variables, hours, absences, and deductions match the internal records. This review prevents errors before generating final transfers and receipts.
What happens if an incident is reported after payroll has closed?+
It depends on the issue. Some can be corrected before payment if there's still time; others will need to be adjusted in the next payroll. In sensitive cases, such as terminations, new hires, garnishments, or changes in working hours, it's best to act as soon as possible to avoid errors in social security contributions or payments.
Can MGI Àmbit handle the monthly payroll management?+
Yes. MGI Àmbit provides payroll and labor consulting services for companies, business groups, and the self-employed. The service can include monthly payroll calculations, incident review, contracts, social security contributions, withholdings, cost reporting, and ongoing labor support.
Do you have any questions about this topic?
Our team of expert advisors will help you resolve any issues related to our services.
Contact us now
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