What is Payroll Statement?
A payroll statement is a structured document that summarizes each employee’s compensation for a given period, showing gross salary, allowances, deductions (GOSI, advances, loans), and net pay. It serves as the primary record for employee payment, tax/zakat reporting, GOSI declarations, and audit. In Saudi Arabia, payroll statements feed the Wage Protection System (WPS).
How It Works
- Capture each employee’s basic salary, housing, transport, and other allowances.
- Apply statutory deductions: GOSI for Saudis, GOSI hazards for non-Saudis.
- Apply voluntary or loan-related deductions per HR records.
- Compute net pay and post the payroll journal entry to GL.
- Submit to WPS-approved bank and to GOSI within the regulatory deadline.
Saudi Context
Saudi labor law requires salaries to be paid via WPS to local banks no later than three days after each pay period ends. Mismatches between contracted and paid salaries trigger Ministry of Human Resources and Social Development (MHRSD) sanctions. Qoyod’s integrated payroll module generates WPS-compliant SIF files and posts the payroll journal entries automatically.
Example
An employee’s June statement: basic SAR 6,000, housing SAR 1,500, transport SAR 500, gross SAR 8,000. Deductions: GOSI 9.75% on SAR 6,000 = SAR 585, loan installment SAR 500. Net pay = 8,000 – 585 – 500 = SAR 6,915 transferred via WPS.