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All about the Payslip Template and Why Payslips Are Important
Did you know that issuing payslips to each one of your employees is legally required by law? Do you know why these payslips are so very important for both you and your employees? Payslips, whether they’re attached to an employee’s paycheck or provided separately, are important business documents for a number of different reasons, which is why the government requires that you issue them at the conclusion of each pay period. This may seem like a lot of extra work, but with a payslip template, one that is formatted to meet the needs of your particular business, the job is literally a snap. In this article we will briefly describe what a payslip is and describe some of the information that must always be included on a blank paycheck stub template. Additionally, we will discuss why these payslips are so vital to both you and your employees.
Payslip Template: What Is It and What Is Included
A payslip template is a type of pre-formatted tool for creating payslips—small documents that are either attached to an employee’s paycheck or included separately. To create this tool you have a couple of options. You could create your own Excel payslip template using Microsoft’s popular spreadsheet program, or you could search through the thousands of free payslip templates online to find a sample payslip template that will work for your business. Either way, they are very easy to create, and once finished it will transform what once was a very time-intensive and monotonous process into one that takes just a few minutes to complete at the conclusion of each pay period.
Whether you decide to create your own Excel payslip template or borrow a sample payslip template from a recognized site for business-related documents, there are certain items or categories that must be included in the template. Some of these will be purely informational, while some will be formulas that will be necessary to do the required calculations when figuring out deductions and net pay. Some of these items include:
• The Company Details. If you’re browsing through the many free payslip templates found on the Internet, you’ll need to ensure you choose one with ample space to include your company’s name and details. This usually includes, but is not limited to, the company name and address, including city and state, and any website or email information that may apply.
• Employee Info. Naturally, any blank payslip template must begin with the information of each of your employees—information that can be transferred at the click of a mouse into the body of the payslip template. This information includes the employee’s full name, address and social security number.
• Income. If you decide to create your own Excel payslip template there are several income categories that must be included in the final document. These include the number of hours the employee worked during the given pay period, the rate of pay, the gross income, which is the total amount the employee earned before taxes and deductions, and net pay, which is the actual amount of the paycheck; the amount the employee takes home. In this category you should also include year-to-date totals for both gross and net income, as well as any overtime hours worked and the rate the employee was paid for those hours.
• Deductions. Any payslip template, including a sample payslip template found online, will have many fields in which you can create formulas for the various deductions. These deductions could include federal, state and local income tax, retirement or pension, health and dental insurance, social security and state disability withholdings, and other contributions which the employee has elected to have deducted. Keep in mind that in terms of the amount of income tax withheld, there should also be fields to list the yearly total of those tax deductions.
Payslip Template: Why Are Payslips So Important for Your Employees and Your Business?
Regardless of how you choose to create your payslip template, it is a job of great importance for both you and your employees. Below we will take a closer look at why this is true:
Why Payslips Are Important To Your Company
• Record Keeping. Creating a blank payslip template in which you can record the amount of an employee’s earnings and deductions is a very effective tool for record keeping within your business, especially come tax time when you must balance the company’s books.
• Dispute Resolution. After creating an Excel payslip template you’ll be able to save each of your employee’s payslips in a separate file. This can come in handy when there is a legal dispute regarding how much an employee earned and/or how much was deducted from their paycheck.
Why Payslips Are Important For Your Employees
• Proof of Income. When an employee wants to buy an item on time or credit or apply for public assistance, he/she will almost always have to show proof of income, and a payslip, one created using a sample payslip template, is generally the only proof that will suffice that creditor’s request.
• Record Keeping. Employees should save each one of their payslips for at least a period of three years for tax purposes.
As you can see, whether you decide to create your own payslip template or choose from one of the many free payslip templates online, it is definitely not a task that you should put off.