Excel Payslip Template
As an employee, we all get salary receipt so-called “Payslip” from our employers which is an acknowledgment for salary credited to employee account from the employer. In the modern world, corporate companies use sophisticated software’s to prepare their employee’s payslip but we can still rely on excel to prepare payslip. In this article, we will show you how to build a Free Payslip template in excel.
Pay Slip or Salary Slip template in excel is the receipt given by the employer to their employees every month upon payment of salary to the employee for the services rendered in the month. Pay Slip consists of all kind of earnings and deductions under various heads as per the norms are given by the government in the respective financial year.
Examples of Free Payslip Template in Excel
Let’s follow the below steps to build a Free Payslip excel template on your own.
Step 1: First thing you need to set up is general information about the company. It should include Company Name, Address, Phone Number, and Company Logo. You can include any other information regarding the company.
Step 2: Next you need to specify for which month salary is paying for.
Step 3: Next you have to include all the information related to employees. Employee information should include below items.
Employee Name, Employee ID, Designation, Department, Gender, Date of Joining, and Location.
Step 4: Once the employee information provides we need to show employee Bank Account Number, Bank Name, UAN Number, ESI Number & Pan Number.
Step 5: Next you need to show for the period paid days, LOP days, Days in a Month.
Step 6: Once employer and employee information inserted next we need to insert salary details as per the break-up.
First, include gross salary as per break up.
Salary structure includes “Basic Salary”, “HRA” and “Special Allowances”. These elements are common elements of a fixed salary.
Step 7: Now we need to include any other earnings like Incentives, Bonus, Overt Time, etc.
Step 8: Once the earning part decided we need to mention all the deductions under various heads as per the rules of the government.
Deduction part may include Provident Fund, ESI, Professional Tax, Income Tax (TDS), Salary Advance (If Any) and you can include any other deductions as well.
When you are including deductions you need to be careful in terms of Professional Tax, Provident Fund, and Income Tax calculations.
PF will be 12% of basic pay, PT will be 200 if the gross salary is more than 15000 or else 150.
Income Tax calculation should be as per the rules and regulations of the government. You need to calculate TDS after deducting exemptions, so maintain a separate working for this. It is always a good practice to hire a good professional or consultant who is an expert in these matters.
Step 9: Next we need to arrive at the Net Pay amount. To calculate this simply apply the formula Total Earnings – Total Deductions.
So once the net payment arrived payslip format is ready to use and it looks like this.
Pay Slip for Not Registered Companies
For small industries that are nor registered themselves with the company, secretaries will not have any sort TDS, PF, ESI deductions. For them, it is simple to payslip.
Keeping in mind those unorganized industries we are providing payslip template for them as well.
Small industries include Basic salary as part of their salary structure.
In small industries employee work overtime most of the time, in such cases factories pay Over Time wages at 1.5 times of regular payment.
Over Time amount is calculated on an hourly basis, so it is important to mention OT hours, Rate and OT amount.
So Basic & OT Payment gives the total to Total payment.
Next in small industries deduction part includes only “salary advances” so provide this column under deductions.
So now arrive final net pay.
Things to Remember
- Pay Slip looks beautiful but a lot of effort has been put by the payroll team to arrive net pay amount.
- In today’s sophisticated software’s you can design anything and everything. All the complicated calculations are automated in that.
- You need to download the template and modify the contents if the salary structure is different in your organization.
- TDS calculations are complicated and always keep yourself up to date with rules.
This has been a guide to Payslip Template in Excel. Here we discuss how to build a Free Payslip template in excel using formulas with downloadable excel sheet. You can learn more about excel from the following articles –