Payslip format helps an employee to know how the net amount has been worked out.
Given below are some tips for choosing payslip format:
1. Frankly speaking, the format should include the most essential details regarding the employees’ earnings and thereafter, the deduction.
2. The format should also include regular and overtime working hours rendered by the employee during a particular period.
3. The format must show the deductions; that is, it much give a complete and detailed breakdown of all the deductions such as income tax, local tax, social security, federal income tax, etc.
4. The format must also include deductions in the form of absences, union dues, health insurance premiums, tardiness, etc.
5. The format must also highlight the gross earnings, the total deductions and the net pay, that is, the in-hand payment to the employee.
The above are good guidelines and accordingly, payslip sample should include the following:
• Company name – in the top centre of the page.
• Month of pay – in the top centre of the page.
• Then, a table format is used to drawn two columns and 4 rows.
• The left-hand side of the first row should give employee name, employee number, department/program, bank account number.
• The right-hand side of the first row should give designation, date of joining, total day, LOP days, days paid.
• In the second row, the first column should be marked ‘earnings’ and the second column should be marked ‘deductions’.
• In the third row, under the ‘earnings’, show basic, HRA, bonus, medical reimbursement, special allowance, special incentives, leave encashment, etc. Total them out as ‘Gross Earnings (A)’.
• In the third row, under the ‘deductions’, show whatever has to be deducted. Total them out as ‘Total Deductions (B)’.
• Finally, show the ‘Net Pay (A) – (B)’. Beneath the table, show the place and the date.