PAYSLIP

Payslip is an important financial tool that helps an employee to know the earnings available to him. It also acts as a proof and acknowledgement that a person has been working with an organization. Payslips also assist in effective budgeting by the employee based on his net pay rather than the gross pay.

An employer is required to provide payslips to his employee that will explain in detail about everything the employee needs to know about his pay acquired. Also, in most of the countries payslip is a part of the basic conditions of employment act and without a payslip an employer-employee relationship may cease to exist.

The two most pertinent questions that arise with regard to payslip are: Who requires them? How to prepare a payslip?

Who requires a Payslip Sample?

Self-Employed: If you are self-employed and require a loan it is important to prepare a sample payslip as most of the banks don’t accept your business income as personal income. A simple spreadsheet with monthly business income and expenses, followed by a payslip that can be used to compute your taxes will help a great deal when applying for a bank loan.

Companies: Business Organizations that have started up or expanded their operations as well as those who are overhauling their payroll system is on a look out for payslip. The internet is flooded with websites that offer different kinds of payslips and even specialized payroll systems. The companies should plan meticulously and chose the right kind of the payslip which would suit their unique requirements.

Financial Institutions: Many financial institutions have their own payslip and would prefer their investors and borrowers to follow them for uniformity. With a standard format it eases their task of processing and verifying payslips.

Other than the above-mentioned, payslip sample are also required for business visas/work permit application and for taxation purposes.

How to prepare a Payslip Sample?

Some simple ways to get your payslip sample

• From the Internet: You can start hunting for a sample payslip over the internet. There are free down-loadable versions that you can later customize according to your own requirements.
• Purchase or download payroll software. A payroll system automates the whole process of making and printing payslips. Thereby reducing your efforts.

Whichever method you follow the most common components to look for in a payslip are:

a) Employer’s Name and contact address

b) Name of employee, designation, department and address

c) Scope and period of the pay – there are companies which give bi-weekly salaries and some give monthly

d) Overtime hours, loss of pay and bonuses

e) Taxes, EPF, SOCSO, insurance and other investments made by the employee – this allows the employee to check and verify his deductions

While preparing an effective payslip, we should make sure the above-mentioned essential elements of a payslip are included and then proceed to add in other information that might be important.