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Save Time and Money with a Quality Payslip Format
Last Update : 18 December, 2013
Are you looking for an easy and hassle-free way to develop payslips—forms that serve as a type of financial accounting to be included each pay period with your employee’s pay checks? Would it be beneficial if you had a specific payslip format you could refer to, a template of sorts that is used by other like businesses in your industry for the same purpose? If so, the following information may prove quite useful. Here we will introduce you to a simple and streamlined payslip format, including the items and topics you will need to include in each section of your new template.
Payslip Format: About the Payslip
Payslips are legal documents that show the specifics with regard to how many hours an employee worked during a given pay period and the amount of money he or she earned for those hours. The document also provides a recap of the various deductions taken from said employee’s pay—deductions that when subtracted from the total amount earned will result in a figure called “net” or take home pay.
While it’s true that many employees will not give their payslips a second thought (most are too eager to get to their pay checks), these small documents are indeed very important, as they serve as the only proof an employee has in terms of the amount of money he or she earns each month. Individuals who want to buy an expensive item, for example, such as a car or home, will need to show proof of income before the seller grants them credit. Similarly, individuals who decide to apply for public assistance of some kind—financial help with food, rent, child care, etc.—will also need to demonstrate that their earnings are not sufficient enough to meet their basic needs. These proofs, as well as many more just like them, can only be satisfied with a payslip.
The issuance of payslips may seem like a laborious chore, but nonetheless, it is mandatory under the law. Because of this, many business owners will hire accountants or payroll service companies to develop these documents for them, spending money unnecessarily for a task that could just as easily be handled in house with the right tools. This is where a quality payslip format can be very beneficial, allowing you to create your own computerized template that will transform this weekly, bi-weekly or monthly chore into a quick and manageable process.
Payslip Format and What Should Be Included
While the exact size of the payslip is inconsequential, experts suggest it should be identical in size to the pay check itself. This will enable you to attach the two documents together and include them in the same envelope each pay period, which will ultimately save you both time and money.
Once you’ve selected a size that suits your needs, the next step is to start building the various fields for your payslip template. These topics or pieces of information are fairly universal despite the particular business or industry, so when searching for a quality online payslip format, the following items should always be included:
• Company details. The name and address of your business or organization is one of the few fields on your payslip template that will remain static or unchanged, and in terms of the proper payslip format, this information is usually included in the top-left corner.
• Employee name and identification. In the top left-corner of the payslip template, the name and identifying information of the employee should appear. This includes his/her address, city, state, zip, telephone number and social security or tax identification number.
• Income details. In a quality payslip format, all income details should appear on the right-hand side of the document. This includes the number of hours worked, the pay rate per hour, gross earnings (for the current pay period and year-to-date) and net earnings (for the current pay period and year-to-date). Remember, the net pay is what the employee will actually take home after the all the deductions have been applied.
• Deductions. Deductions, including those that are voluntary and involuntary, will normally appear on the left-hand side of the final payslip. These, too, will need to be calculated for the current period and the year-to-date. Depending on the area in which you live and the type of business you operate, these deductions could include local, state and federal income tax; health, dental, disability and workers compensation insurance; social security and other retirement accounts; and any charitable gifts the employee opts to have deducted.
Once you’ve decided on a payslip format that suits your needs, creating a computerized template that will make and store the calculations for you is a very easy process. And the best part is the template can be used time and time again on every pay period, turning a job that once took hours to complete into one that takes mere minutes instead.