Salary slip format in Excel
Salary slip format is usually required in organizations to keep the monthly payroll record of the employee. It can be designed using MS-Excel software. You can make your own format that meets your requirements and use it forever.
Besides this, there are several pre-designed salary slip formats available on the internet. You can download any of them that fits your needs and use them. Salary slip is also called "Payslip". If you want to design the format by yourself, you should know about it.
What is a salary slip? Why is it needed? How to create it? Is there any predefined salary slip format available on the internet? These are some most asked questions that come to mind. Thus, this chapter is designed by keeping all the salary slip-related questions in mind.
What is a salary slip?
A salary slip is an Excel report that is designed to keep the employee's monthly data. A salary slip usually contains the company name, payslip month, employee name, employee ID, employee's bank account number, HRA, gross salary, provident fund, daily attendance, and many more.
Apart from these details, it can also have the employee's total working days, weekends, leave taken by him, deduction (if any), bonus, extra time work, half days, and many more details. As it contains payroll details of employees so that it is also called Pay slip.
An organization can have its own salary slip format prepared by the Accountant/HR or use a format downloaded from the internet by making some changes.
Why is the salary slip needed?
A salary slip is created on a monthly basis and issued by the employer to the employees and company accountant. It is either issued on paper or mailed to them on their mail ids.
Employees can reverify all details in their salary slip, such as bank account number, total working days, and leaves. If there is any correction, they can inform HR to make the corrections in it. In contrast, a company accountant requires the salary slip to transfer the salaries of employees.
How to prepare a salary slip?
You can prepare the salary slip in MS-Excel by yourself with a few simple steps. Conversely, there are several salary slip formats and templates are available on the internet. You can download and use them. Remember that - these formats are editable. So, if you want to add or remove something, you can modify it using MS-Excel software.
A simple salary slip format contains four major details:
A payslip always contains basic company details in it. It generally includes the company name, address, and contact number in a payslip.
A payslip is created for each employee separately and it must contain some payroll details of employees. Employee name, Employee ID, designation, bank account details, and Employee net pay.
In some formats date of joining is also a part of the salary slip.
After the company and employee details, let's move to the earnings. It includes basic salary, allowances (Conveyance allowance, Dearness allowance, medical allowance, travel allowance, HRA), Performance bonus, and other benefits.
With earning, there might be some deduction as well. Deductions like - PF (Provident fund), TDS, Loan, EMI, HRA (Home Rent Allowance), Health Insurance, professional taxes, advance salary, etc. So, the salary slip format also contains these details.
Employee's deduction is deducted from the gross salary.
Predefined salary slips templates
A salary slip is different for the organization and industry. There might be possibilities that - some companies pay in cash, some in cheques, and some provide salary through bank transfer.
We have some links for downloading the predefined salary slip formats, which you can use directly by downloading them. These templates are uploaded on google drive. So, click on the download link to download it in your system and use them.
Besides these links, we will provide you some more templates to download for different levels of organizations.
Simple salary slips formats
These templates are useful for small companies, where there are no such provident fund and detailed deductions. It consists of only some basic details like - employee name, id, designation, basic pay, earning (working days), and deductions (half days or leaves). You just need to enter the data in the respective cell, and the net salary will be calculated automatically.
Download the simple template of the salary slip by clicking here (https://d25skit2l41vkl.cloudfront.net/wp-content/uploads/2018/05/Simple-Salary-Slip.xlsx).
Corporate salary slips formats
Corporate salary slip formats are used by big MNCs companies. Corporate salary slip formats contain various data along with basic details and predefined formulas. You just need to enter the data in the respective cell, and gross salary will be calculated automatically after allowances and deduction.
The final payable amount also calculates using these predefined added formulas. You can download the corporate salary slip template from here (https://d25skit2l41vkl.cloudfront.net/wp-content/uploads/2018/05/Salary-Slip-With-Taxes.xlsx).
Some salary sheets also consist of attendance of employees on a daily basis. Attendance can be written manually or directly exported from the biometric software to Excel worksheet. Thus, we require a template for it. However, it can be simply created with minimal information, such as - Employee name, Id, Dates with day, arrival time, office leaving time, etc.
Besides this, we have a template for the attendance sheet. Click here (https://d25skit2l41vkl.cloudfront.net/wp-content/uploads/2017/05/Employee-Attendance-Sheet.xlsx) to download it.
Components of salary slips
A salary slip consists of various components, which everyone should know either you are an employer or an employee. Both should know the terms used inside the salary slip. These terms are known as components. Following are those components explained below:
The following are components come under the earning category:
The basic pay or basic salary is a fixed amount to be paid to an employee every month. It is 40 - 50% of CTC and part of the Take-Home Salary.
Basic salary is fully taxable if it crosses the income tax slab defined by the government.
Dearness allowance (DA)
The term "dearness allowance" is also called DA in general language. A certain percent of the basic salary is paid as a cost-of-living adjustment allowance. DA is between 4-10% calculated on basic salary depending on the contract.
Home rent allowance (HRA)
The term home rent allowance is usually heard in organizations as HRA. It is an amount paid by the employer to their employees according to their salary and regions they are living.
Understand in simple language that the HRA is decided based on the different criteria like city resident and salary grade. For example - HRA is 50% of its basic pay for an employee living in a metro city. While HRA will be 40% of the basic pay for an employee living in the non-metro city.
Conveyance Allowance (HRA)
Conveyance allowance is the amount provided to employees for the travel expenses from their residence to workplace and vice versa. Conveyance allowance is calculated for the number of working days. It means conveyance allowance is given to the employees based on the attendance of the employees they worked for in a month.
Income tax allows maximum 1600 rupees of exemptions.
Medical Allowance (MA)
Medical allowance is a fixed amount decided by the organization. It is transferred along with the salary by the employer to the employee's account every month. This value is decided based on the applicability of the employee as per the contract.
Medical allowance is paid against the medical expenses of the employees but a maximum of 15,000 per year.
Travel Allowance (TA)
The organization pays travel allowance to its employees for traveling from one place to another for business purposes. Actual amount is paid to employees that spend on traveling for business.
Taxability: In a block of four calendar years, two journeys can be claimed.
Special Allowance (SA)
Special allowance is the fixed amount provided to an employee to meet certain requirements over the basic salary. Special allowance can also be taken as performance-based pay.
As the name implies, bonus pay is a reward amount paid to an employee for his good performance. Companies pay the bonus to their employees annually based on the company and employee's overall financial performance.
Bonus is also paid on festivals, like Diwali.
So, these are the allowance that we have discussed above, which comes under the earning section. Now, let's move towards deductions.
The following are components come under the deduction category:
Provident Fund (PF)
The term of provident fund is also known as PF, which is a retirement benefit. It is deducted from the gross salary. Almost every organization makes it mandatory to deduct the PF from the employee salary.
Government decides the percent rate for the deduction of PF. PF percent rate is 12% currently. This benefits on retirement or while leaving the company. All PF amount collected from the employee salary is returned to him.
In case if the employee draws some or full salary in advance, it is known as salary advance. It is deducted from the salary in the coming months. This amount is deducted from the gross amount.
The professional tax is a tax that charges by the government on monthly salary income. This tax amount is also deducted from the gross salary.
The maximum payable amount is 2500 per year according to the tax slabs declared by the government.
Tax deducted from source (TDS)
This term mostly listens as TDS, which stands for tax deducted from source. It is an income tax that applies to employee salary. In some regions, companies themselves deduct the income tax from their employee's salaries and pay the collected amount to the IT department. While, in some regions, you have to pay tax by yourself.
Note: TDS amount is not refundable and paid to the government.