An employee Payslip is required by law and has to show relevant information such as gross and net pay, income tax and national insurance, and other deductions, along with the total paid to the employee. They need to show all the relevant details required by the business and the employee as specified in the law. The easiest solution is for a small business to use a payslip template, or for those that are self-employed they are ideal to provide proof of income when applying for loans, mortgages, car finance and other financial services.
How to Find a Payslip Template
The most effective ways of getting a payslip template include:
- Search and Download from the internet
- Browse Office Software websites that have templates (see the ones listed here)
- Use Microsoft Word, Apache OpenOffice or Google Docs to create your own template
- Use a standalone program designed to produce payslips from accompanying templates
- Purchase a payslip from a company - there are some to be found on the internet
If you search for payslip templates via the search engines you will see a lot of web sites offering them. Some are good, but the ones highlighted on this site are better. Free payslip templates are available if you know where to look. Use office software websites to buy online
Create a Payslip Template
There are many sites available that will provide a payslip template either free or for a small cost. Free ones tend to be limited but there are good suppliers that charge a small amount for payslips.
Create your own in Word or Open Office If you know what information needs to be included on a payslip template then you can use a standard office program such as Word, Excel or Open Office to produce them yourself. They won't look as good as the purchased templates but they will do the job. Make sure you spend some time looking at payslip template examples from across the web and from payslip software. You can then copy the style and layout. Use a standalone program You can purchase programs online that will calculate all the necessary tax and national insurance payments for you and print the payslips ready for use.
What's on a Payslip
There is specific information that has to be included on a payslip by law. There is also a range of other information that your employer might include. These items may be important for your business, so check carefully that they are all included in the template that you use.
Gross Pay: Total monthly, or weekly, pay before deductions.
Income Tax: This is compulsory. It is the amount deducted and paid to the Inland Revenue. The amount is calculated by using your tax code.
National Insurance: This is also compulsory and is the amount deducted and paid to the Inland Revenue.
Pension Contributions: This may be a company pension scheme.
Net Pay: This is the actual amount after all deductions that is paid to the employee.
Tax Code: This may be included on the payslip for your information.
Employee Number: This may be shown and is allocated by the company.
National Insurance Number: Not required but sometimes shown on the payslip.
Different payslip templates provide space for different information. Make sure the one you choose shows the compulsory information and whatever else you need to provide in your company. If in doubt check with the relevant finance department. They must show at least income and deductions for the employee.
Advantages of a Payslip Template
When you find that you need a payslip, or a few months worth of payslips, then it can be a life saver to be able to get a payslip template so you can add your own details and provide the necessary documentation needed for loans and mortgages. These should be exact replicas of lost payslips though some people do use them to produce payslips that exaggerate, or possibly limit, their actual earnings. They are usually professional looking and the same as a payslip you would receive from an employer.
Getting a payslip template that you can personalise means that you can control, and produce documentary evidence of, earnings that need to be assessed. The responsibility lies with you for whatever purpose the payslip is being used for.
The advantage of a payslip template is that it will provide a useful layout ready to input personal information, and should contain a comprehensive list of all the items that are required by law to be on a payslip, such as gross pay, income tax paid, and deductions such as pension contributions.
Payslip for Proof of Income
Do you need a payslip template as proof of income for a mortgage, loan or other purpose? If you have damaged, destroyed or lost a payslip, or have hand written payslips that have been rejected then there are companies online that will supply a replacement payslip for proof of income purposes. These are legitimate payslips as long as they are copies of originals and should be accepted by banks, mortgage companies and other financial organisations.
With high quality, Inland Revenue approved, payslips and P60s incorporating accurate calculation of tax and national insurance, these are ideal when you need proof of income. They are legitimate as long as they are copies of originals. They can also be useful for the self-employed where proof of income is required in a format that shows employment rather than previous tax returns.
Search online for companies supplying these templates and let us now which ones are best. We will add them here.
You can of course find software that will generate a payslip for you and should be good enough for most purposes.
An employment contract is part of UK law and defined by the Government on the gov.uk website.
This contract defines the employees rights to working conditions, their responsibilities and duties, and of course their pay.
The contract is enforceable in law until it is ended, under its conditions, by either the employer or employee. This can be by agreement to change the contract, or by ending the agreement by giving notice or by the employee being dismissed. Surprisingly the Government states that "An employment contract doesn’t have to be written down", though employment lasting more than a month must have a written statement of employment particulars.
This statement must include:
- the business name
- employee's name
- job title and description
- pay and time of pay
- hours of work
- holiday entitlement
- location of work
The terms of the contract can be written down in a document, verbal, or even on the company notice board. Other applicable terms are those accepted by trade unions, or implied by the law or common sense. One example is having a valid driving license if you accept a job as a lorry driver. Other examples of implied contract terms are not stealing, being granted the minimum holiday entitlement, health & safety at work, and the minimum wage.
Further information is available at: Employment Contracts on the Government website.
Small Business Payslip PDF
This is an example of a basic small business payslip for use as a template.
Download the PDF Payslip Template.
Small Business Payslip Template example. (PDF)