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Companies that have employees must manage salaries, as well as employees’ social security and insurance contributions.
Salaries can be managed in two different ways:
Net salary management is the simplest solution because it provides for:
- recording salaries at the time they are paid
- recording social security and insurance contributions only when advance payments of contributions and employees’ insurance premiums are paid.
Gross salary management is much more complex because transactions must record monthly gross salaries and the social security and insurance contributions deducted from employees’ pay, as well as the withholdings on employees’ salaries.