How to prepare a salary payslip

16 of May, 2022

A salary payslip is a common and essential document that any business must hand out to their employees. It states the worker’s gross and net salaries, as well as other necessary information.

But how should you prepare an employee payslip? What information should it present? Which format should it have? You will find all the answers to your questions regarding salary slips below.

What is a salary payslip?

A salary payslip is also known as a salary slip. It is a document that the employer issues to their employees at the same frequency as their salary payments, whether those are weekly, bi-monthly or monthly.

A payslip comprises the breakdown of the amount of pay before tax and other schemes are deducted, as well as the net salary that the employee will receive.

Human resources teams are usually in charge of generating the payslips. To make their job easier, you may want to install a payroll software that takes care of all calculations in relation to salary payments and automatically updates your employee’s payroll online.

Automating your payroll will save you time and money and prevent any mistakes.

For which workers should you prepare a payslip?

For every worker employed by your company. If a company doesn’t provide recurring payslips, the employee has the right to demand a payslip sample.

What should be on a payslip?

A payslip should invariably contain certain data, for example:

• The employee’s personal information;
• The employee’s payroll number;
• The tax period and tax code;
• The amount of pay before deductions, or gross pay. It includes the basic salary as well as all the allowances given to the employee (for instance, a conveyance allowance, medical allowance, or performance allowance) ;
• The various deductions, which include taxes, social security, insurance, and pension schemes;
• The amount of pay left after all these deductions, or net pay.

If applicable, it can also present the reimbursement of various expenses as well as workplace benefits.

What format is the best for a payslip template?

There is no law regarding the format of a payslip, but certain practices are common place. Following them will ensure that the payslips you generate are clear and easy to read. You want your payslips to contain all the required information and to look professional.

To make sure your payslips are adequately formatted, follow these guidelines:

• The gross salary is usually found at the top;
• Then comes the various deductions;
• The net salary is stated at the bottom of the page.

There are different formats for creating a payslip, from simple ones for small businesses to more complex ones for larger companies. Besides, various tools exist in order to help you generate payslips. Some companies use Word, but the vast majority use an Excel template that allows them to easily create professional-looking salary slips.

The payslip can be a printed document, or an electronic one that is delivered to the employees’ mailbox for instance. The document manager in Sesame’s employee centre gives the employees access to their online payslip among other documents so that they can consult them at any time.