Excel is a powerful tool for business owners who deal with a wide range of data and handle many administrative tasks. Using a salary slip format in Excel with formulas that handle the calculation of an employee's salary based on hours worked, any overtime and commissions earned is one of the time-saving applications of the software. Excel doesn't have a standard template for this, but templates are available online. Finding a template that matches your specific situation isn't always easy, so learning how to use a template and edit it to suit your needs is the best approach.
Finding a Pay Slip Template Online
The first thing you need to do is find a pay slip template to download by searching for Excel salary slip templates. It doesn't matter if the template isn't perfect for your needs, because it can be edited and adjusted for your business. You can find formats that include or exclude various specific fields. For example, you can find templates that include tax calculations or exclude them and templates with or without bonuses.
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Make the Template Your Own
Think of the template as a jumping-off point for your company's salary slip rather than a finished product. For example, if your chosen template includes a field for job role but not for the department that your employee works in, you can add a row for the extra information. You might need to add a row for employee pension payments.
Excel's flexibility is a huge help if your business has unique requirements for your pay slips or if you can't find a template that covers everything you need.
Many pay slip templates have sections crediting the website that made the template. Some website's templates include a logo and hyperlink to the site at the top of the template. Delete these and replace them with your company's logo and website address and insert your company name in the indicated space.
Make Sure the Formulas Work
Most of the time, a salary slip format in Excel with formulas includes a basic calculation for the final salary, adding earnings and subtracting deductions based on the values included in the relevant fields. However, it's worth checking that the formulas produce the result you want before using the template for your business. The simplest way to do this is to highlight the different cells and read the formulas in the function fields to clarify how everything is calculated.
One problem you may encounter is the tax calculation on pay slip templates. Templates often leave a space where you enter the amount of tax directly, and it is then subtracted from the net salary in the last step. However, the amount of tax depends on the amount of earnings, so you may want to incorporate a formula for calculating this automatically. For example, if an employee is in a 20 percent tax bracket, in the cell for the tax amount, type an equal sign (=) followed by the cell reference for the total taxable income and then multiply this by 0.2 for 20 percent.
For example, if the taxable amount is in cell D14, enter =D14*0.2 to calculate the value for the tax automatically. Change the decimal if the percentage is different (0.15 for 15 percent or 0.35 for 35 percent, for example) and alter the cell reference as needed.
Fill in the Details
At this stage, you're ready to prepare a salary slip of an employee in MS Excel. Enter the specific details in the fields on the template, including employee's name, employee number, job role and other relevant fields. The template makes this easy because it indicates the information that needs to go in each field. You work through it as if it was any other form.