August is a different kind of month. While many companies slow down due to the holidays, the most strategic HR and Finance teams use this time to prepare for the new cycle that begins in September.
Because although the fiscal year continues as usual, in Spain, September marks the “real new year” for many organizations: new hires return, strategic plans are launched, and with them, the need for payroll to run like clockwork.
In this article, we share an essential checklist to review your payroll system before things pick up again. A practical exercise that will help you avoid errors, ensure compliance, and start the new cycle with peace of mind.
Why Review Your Payroll in August?
While it’s not mandatory, conducting a strategic payroll review in August has several key advantages:
- There’s more room to detect errors without day-to-day pressure.
- Lower operational workload allows focus on structural tasks.
- Avoids bottlenecks in September when everything speeds up again.
- Supports good fiscal and budget planning for the final quarter.
The Checklist: 6 Key Steps to Review Your Payroll This Month
1. Updated Contracts and Employment Changes
Have all new hires and terminations been correctly recorded?
Are there any changes in conditions that haven’t yet been reflected?
- Now is the perfect time to review:
- New hires after summer
- Changes in working hours or contract types
- Internal promotions
- Departures or leaves of absence
A proactive review will help you avoid surprises in September’s payroll.
2. Bonuses, Variables, and Special Payments
Planning ahead is key.
Check if the following are scheduled:
- Annual or semi-annual bonuses
- Performance-based incentives
- Pending commissions
The sooner these are integrated into the calendar and systems, the more control you’ll have.
3. Income Tax Withholding (IRPF) and Personal Taxation
Changes during the year may affect employees’ tax withholdings (IRPF): salary increases, family changes, etc.
August is a good time to:
- Verify the current withholdings
- Adjust if there are significant discrepancies
- Avoid unexpected adjustments in December
4. Holiday Calendar and Work Schedule Adjustments
Local or regional holidays, special workdays, or shifts must be accurately reflected in the payroll system to avoid errors in calculating hours and bonuses.
- Verify that all calendars are up to date
- Confirm with managers in each region if any changes are expected
5. Social Benefits and Deductions
Health insurance, meal vouchers, transportation… all salary-related benefits must be reviewed and updated when there are staff or provider changes.
- Are all benefits correctly recorded?
- Have deductions been applied properly?
- Are there new employees who need to be added to the system?
6. Process Review with Your Payroll Provider
If you work with an external partner, like Rosclar, August is ideal for a joint review:
- Are workflows functioning properly?
- Are SLAs being met?
- Is there room for improvement in communication or planning?
A good provider (spoiler: Rosclar is the best) not only executes but also supports your continuous improvement.
