Ultimate Guide to Salary Slips

The Ultimate Guide to Salary Slips: A Comprehensive Answer to Common Questions

The salary slip is a legally-mandated document that an employee must be given by their employer at the beginning of each pay period. The salary slip contains detailed information about how much money they have earned and what deductions were taken from their paycheck.

This comprehensive article answers common questions as below:

What is a salary slip?

There are five sections of salary slip:

Salary Details Section, which includes basic information about your company, employee’s name and department they work for as well as their personal details such as address, marital status etc.

This part also contains amounts that have been withheld from payments including income tax at source on salary advance taken by the employees during any pay period or paid leave advances received from employer before completion of six months of continuous service.

The rest four sections include salary items like Dearness Allowance (DA), Total Gross Income (TGI), Net Payable Amount after Tax (NPA) and Tax Deducted at Source (TDS).

It also provides details on deductions for things like insurance or retirement contributions.

Is it payslip different from locations?

The salary slips differ from country to country, but typically salary slips contain: salary itemized in detail; some tax information; sick leave and paid vacation time accrued during the year so far; mandatory social security payments made by both employer and employee on behalf of worker’s earnings along with any additional voluntary contributions either party has elected to make toward retirement benefits.

Salary Slip Format

Salary slip format in Excel is important to understand salary items and salary deductions.

It will help you to calculate salary net pay correctly on salary slips, so that it matches with what your company pays you.

The salary slides are usually prepared for the month of December every year just before the commencement of New Year or after completion of fiscal year depending upon country’s accounting standards.

They contain all necessary information about previous years’ earnings along with other details like taxes deducted by employer, etc., which should match up employees’ tax returns filed either monthly or annually as per applicable Income Tax Act .

Salary Slip Example

The salary slip examples are helpful in understanding salary items and salary deductions.

It will help you to calculate salary net pay correctly on salary slips because it contains all the information about your payslip calculation, so that the amount matches what your company pays you.

Salary slide format is important to use when filling out payroll forms for both employees and employers alike considering different countries have different laws governing them.

How to use the salary slip template for your business?

The salary slip template in MS Excel format is helpful to use when filling out payroll forms for both employees and employers.

It contains all the information about salary deductions, salary slips calculation along with tax related information which can be easily used by people who are not familiar with accounting terminologies. The salary slip examples will ease their work of calculating net pay on payslip correctly so that it matches what your company pays you.

Is salary payslip important?

Salary slide format is very useful because this shows how much money an employee has earned before any taxes were paid towards them plus other details like social security contributions made either monthly or annually as per applicable Income Tax Act.

Steps to create a salary slip

To create a salary slide use following steps:

  • Open any spreadsheet program like MS Excel or Google Sheets.
  • Create the header row of salary items along with their description.
  • Put cells B11-B14 under Deductions section heading by adding text Salary Items Descriptions below each cell.
  • Fill out number of allowances given at present time followed by corresponding deduction made from total gross income (TGI) using formula =E13/1000 where salary allowances are in salary item E13, salary deductions are in salary deduction G13 and 1000 is number on decimal places.
  • Fill out gross pay amount followed by corresponding deductions made from total gross income (TGI) using formula =E11/1000 where salary items are in salary item I11 , salary deductions are in salary deduction K14.
  • Fill out net salary followed by corresponding deductions made from salary allowances using formula =E14/1000 where salary items are in salary item I11, salary deductions are in salary deduction K12 and 1000 is number on decimal places.

Salary slip format in Excel with formula

Payslip formula is helpful to calculate the base pay , allowances, deductions and net payslip amount in salary slip format in Excel.

  • Use =E11/1000 to calculate gross pay where E11 is the cell reference for Salary Items Descriptions I11 , 1000 is number of decimal places.
  • Use =G13*(B14+C14) if both are taxable to calculate total tax deducted from Gross Pay at source (GPAT).

Use G13 as salary deduction item code followed by B14 or C14 which will be either base rate or commuted value respectively depending upon whether they are taxable or not. * denotes multiplication operator while + denotes addition operator. If one of them is non-taxable then put 0 instead of that person’s income range figure.

Salary slip format in excel & PDF with formula in India 2021

Salary slip calculation in India have different approach. Here there are many subjective prospects are viable as:

EarningDeduction
Basic PayIncome Tax
AllowanceVan Fare
ArrearsSecurity
Total EarningTotal Deduction
Table of Net salary calculation for different pay scale values in divided segments

These values are useful for all type (small and enterprises) organizations for payday salary distribution.

Tips and tricks for using the templates effectively

Salary slip example template in MS Excel format can be utilized effectively by following these tips and tricks:

  • Keep salary items descriptions as short but concise so that it’s easy to remember them while filling out payslips using this excel payslip template . Don’t use abbreviations or symbols which are hard to understand.
  • Make sure you put correct payslip formula on your spreadsheet so that there won’t be any calculation errors. If one item value has been entered incorrectly then whole payslip will show wrong results because every amount depends upon other amounts like Gross Pay (GP) and others.

Why should I get my salary slip?

There are many reasons for this, but the most important ones include:

  • Ensure that payslip format in Excel matches your company’s payslips. If not then you should ask HR department to implement proper salary slip format in excel . There might be chances of mistake if payslip has been prepared manually so it is better to use payroll software like PaySlipXpert which ensures salaries and payslips calculation accuracy.
  • You can track how much money your employer owes you by checking out all deductions made from gross pay (GP) amount under Deductions section on Salary Slip Example Template Microsoft Excel Payslip Format when entering actual figures instead of rounded up numbers as seen usually on normal payslips. This will also help to track you payday.
Important Components on Salary Slip Image

Important Components on Salary Slip

Gross pay (GP), Deduction at source (DAS) and Net salary (NS).

  • GP: It is the amount of money you receive before any deductions. This includes all your allowances, benefits and other payments received from your employer for services rendered by you to them.

    You can also view their payslips online here . All these amounts added together form this figure which will be used further to calculate payslip deduction figures such as Deductions section under Payslip template excel payslip format.
  • Allowances: These include house rent allowance or HRA if applicable, transport allowance , professional tax paid etc when they’re taxable.

Hope this content is helpful for you and making your payment tracking and financial planning accordingly.

travelbrandindia
Finance