The payroll statement is a fundamental and indispensable document in labor relations, representing a clear and detailed record of employees’ salary rights and the fiscal obligations of both employees and employers. Through this document, the employer officially reflects the method by which salaries, contributions, and other benefits or deductions applied to each employee are calculated and granted.
The importance of the payroll statement goes beyond the simple calculation of wages: it ensures transparency in labor relations, protects employees’ rights, and demonstrates the employer’s compliance with legal obligations towards the state. Without it, misunderstandings, disputes, or even legal penalties may arise.
In this comprehensive article, you will learn everything you need to know about the payroll statement: what it is, how it is prepared, what it must contain, and who is responsible for its creation.
What is a payroll statement?
The payroll statement is an official accounting and administrative document, mandatory for all employers who have employees, regardless of the company’s size or field of activity. It records all elements that make up the employees’ gross and net salaries, as well as all taxes and contributions owed to the state, for a specific period, typically monthly.
Besides its accounting role, the payroll statement also has legal value, as it serves as proof of the employer’s compliance with salary and fiscal obligations. It can be requested as evidence in relations with state institutions, during fiscal inspections, or labor disputes between employer and employee. Thus, the payroll statement is a key instrument for ensuring and protecting employees’ salary rights and the company’s compliance with fiscal obligations.
What does the payroll statement include?
The payroll statement is a complex and detailed document that includes a range of essential information necessary for both the employer and state institutions to properly record and verify salary obligations. Below are the main elements that must not be missing from a correctly prepared payroll statement:
Employer Identification Data
The first set of information refers to the employer and must include:
- Full name of the employer (e.g., S.C. Example SRL).
- Fiscal Identification Code (CUI).
- Full registered office address.
- Registration number at the Trade Registry.
- CAEN code of the main activity.
These data are essential for identifying the company, especially concerning the tax authorities (ANAF) and other institutions.
Payroll Period
The statement must specify the period for which salaries are calculated, typically the month and year (e.g., January 2025).
List of Employees and Personal Data
For each employee, the following must be included:
- Full name.
- Personal Numeric Code (CNP).
- Job title and corresponding COR code.
- Employment contract number, signing date, and type of contract (fixed-term or indefinite).
- Work norm (e.g., 8h/day or part-time).
Detailed Salary Elements
The statement must reflect:
- Gross salary: the total agreed upon in the contract, before deductions and contributions.
- Overtime hours, if any.
- Bonuses: for night shifts, hazardous conditions, seniority, etc.
- Other bonuses or performance-related premiums.
Deductions and Contributions
These are mandatory and must be detailed:
- CAS (Social Insurance Contribution) – for pensions.
- CASS (Health Insurance Contribution) – for healthcare.
- Income tax – according to the flat rate established by law.
- Other deductions: garnishments, alimony, other court-ordered obligations.
Net Salary
The net salary is the final amount to be received by the employee after deducting all taxes and contributions. This is the amount paid “in hand” or transferred to the employee’s bank account.
Total Employer Cost
Besides the amounts owed to employees, the payroll statement also reflects the total costs for the employer, including additional contributions owed to the state (e.g., Work Insurance Contribution – CAM).
Signatures
The payroll statement must be signed by the person who prepared it (usually the accountant or HR person responsible) and sometimes by the company’s administrator. These signatures certify the authenticity and accuracy of the document.
How to fill in a Payroll Statement?
Preparing a payroll statement is an extremely important activity within any company and must be done with maximum accuracy, following current legislation. A correctly completed payroll statement reflects both gross and net employee salaries, as well as all corresponding fiscal obligations.
Here are the main steps for completing a payroll statement:
Collect Relevant Data
First, all necessary data for salary calculation must be collected:
- Employee attendance (timesheets, worked hours, sick leave, and vacation days).
- Overtime or work on public holidays.
- Bonuses, premiums, or other benefits (e.g., holiday bonuses).
- Legal deductions (garnishments, fines, contract-based withholdings).
Calculate Gross Salary and Additional Income
After collecting the data, calculate the gross salary, adding bonuses and other income. This gross salary will be the starting point for all mandatory deductions.
Calculate Mandatory Deductions
According to fiscal law, the following must be withheld from the gross salary:
- CAS (25%) – pension contribution.
- CASS (10%) – health contribution.
- Income tax (10%), applied on taxable income (after deductions).
These contributions are calculated individually for each employee and must be detailed in the payroll statement.
Determine Net Salary
After calculating and deducting all contributions and taxes, the net salary is determined, i.e., the actual amount to be paid to the employee.
Calculate Employer’s Obligations
In addition to employee withholdings, the employer must also pay the Work Insurance Contribution (CAM – 2.25%), calculated from the gross salary.
Prepare and Verify the Final Document
After all calculations are completed, the payroll statement must be filled out with all these details, reviewed by the person responsible for payroll, and approved by company management. Verifying the statement is essential to avoid errors that may lead to fines or employee dissatisfaction.
Who has the obligation to draw up the payment statement?
Preparing the payroll statement is a legal obligation of the employer, regardless of the legal form of organization: commercial companies, NGOs, public institutions, or self-employed individuals (PFA) with employees. The law requires each employer to clearly and completely reflect, monthly, the amounts granted to employees as salaries and the related deductions.
Specifically, who must prepare the payroll statement?
- Commercial companies (SRL, SA, etc.) – must prepare payroll for all employees, full-time or part-time.
- Self-employed individuals (PFA), individual enterprises, family enterprises – if they have employees, they are obliged to prepare payroll statements.
- Public institutions – must reflect all salaries and fiscal obligations.
- Non-governmental organizations (NGOs) – if they have employees, they must prepare and keep payroll statements.
Why is it important for employers to provide employees with a payroll statement?
Failure to prepare a payroll statement or incorrect preparation can lead to severe fines from tax authorities (ANAF), labor inspectorates (ITM), or other bodies, as well as disputes with employees.
According to the Labor Code and Fiscal Code, non-compliance can result in:
- Fines between 5,000 and 10,000 RON for missing salary documents.
- Suspension of activity in serious cases.
- Risk of labor lawsuits and moral or material damages.
Whether you are an employer or employee, it’s essential to understand the purpose and importance of payroll, how it’s drafted, and how it helps protect both parties in the employment relationship.
