If you have been searching for an online payslip generator software, you have come to the right place. Getting your salary at the end of a month is definitely one of the best feelings that exist. But how much do you really know about the salary slip you receive? As an employee, you have the right to understand what goes into your payslip and how you can use it. So read on for a guide on what payslips are and how you as an employee, can create payslip online. If you are involved in HR or Finance, here’s my detailed guide to all things payroll.
In this blog:
- What is a payslip?
- Which are the components included if you create payslip online?
- What are the use cases if you create payslip online?
- 6 downsides of not getting an online payslip
- How to create payslip online for free?
- Why should your payroll team create payslip online?
- Create payslip online: Wrap Up
What is a payslip?
If you have ever worked anywhere, you probably know this. But let’s go over it again. A payslip or salary slip is given to every salaried employee as payment for their work. Furthermore, it is given by the employer/organization at the end of every month. A payslip contains information regarding payment date (payday), salary amount, and tax and insurance deductions. It is the legal right of every employee to ask for and receive regular payslips from the employer.
Who should create payslip online?
Every salaried employee gets a payslip. Thus, conventionally the employer is responsible for creating online payslip every month. However, some startups or small businesses may not provide regular salary slips. In this case, you can ask for a Salary Certificate.
Which are the components included if you create payslip online?
A good online payslip generator software such as Asanify provides critical information. Since a payslip is such an important document, it has few essential components. Consequently, these can be broken down into 2 main categories, Income and Deductions.
Income is nothing but the earnings you earn. It has 5 essential elements:
The basic salary comprises of 35-40% of total salary. Therefore it is the largest component of the salary slip and acts as the basis for other determining factors.
Dearness Allowance (DA)
This is calculated as a certain percentage of the basic salary. It is taxable and must be declared while filing your Income Tax Return. Moreover, Dearness Allowance is primarily a feature of payslips given to government employees. It is given to balance the effects of inflation on your salaries.
House Rent Allowance (HRA)
HRA can range between 40-50% of the basic salary. In the payslip, it is given as an allowance to help employees pay house rent. Furthermore, it can be claimed as a tax deduction only if you live in a rented house. The criteria for what is defined as a rented house is given in Section 10 of the Income Tax Act, 1961.
Performance and Special Allowance
This element is completely taxable and is given to encourage employees to perform better at work. So it is an incentive for you to work harder, in its truest sense.
These include any additional allowances that an employer pays you. These may include medical allowance, transport allowance, phone reimbursements or leave allowances. These may also show up on your payslip under ‘other allowances.’
A deduction is an expense that you, the employee incurs during an entire year. These expenses are deducted or subtracted from the gross income. This is done to understand how much tax amount you owe. Always ensure these deductions are in order on your salary slip.
Employee Provident Fund (EPF)
EPF comprises of a minimum of 12% of the basic salary of the payslip. It is a compulsory tax deduction in the salary slip.
Professional Tax (PT)
PT is an important payslip component and is deducted against all individuals with an income. What is interesting is that it is levied in some Indian states only. So check the tax-related laws in your place of work. In addition, professional tax is calculated on the basis of the person’s tax slab.
Tax Deductible at Source (TDS)
This is defined as the tax deducted by your employer (source). Moreover, It is deducted on behalf of the Income-tax department. TDS is a major deduction on the gross salary and can be reduced by investing in tax-saving schemes.
Why are the use cases if you create payslip online?
A payslip plays a major role in the entire payroll process. For an employee, it serves as the means to live and spend money. For an employer, it is a deduction of the earned profits.
The payslip is a legal document that proves your status of employment. Since it is evidence of the salary you draw as well as your designation, it can be used in situations such as visa applications, insurance, etc.
Every component of the payslip is subject to different tax treatments. Additionally, understanding the various tax deductions helps an employee to understand his total taxable income. Hence, this provides an idea of how to maximise your income taxes savings for the financial year.
The salary slip includes details of the monthly income which is an indicator of how well you can meet debt requirements. Hence, the payslip is important when applying for loans, credit cards, mortgages on entities, etc.
6 downsides of not getting an online payslip
Some of you might still be receiving physical copies of salary slips. Let’s look at why this is not a win-win for you:
1. Need for cross-verification in manual payslips
This is definitely a hassle when it comes to manual payslips. Cross-verification is an exhaustive process as it is done individually for you and your colleagues. This basically implies your ‘payday’ might gradually delay into ‘pay week.’ I’m certain you do not want that.
2. Single format options
A payslip generation software can give you multiple salary slip formats which add flexibility and customization. Along with that, a payslip generator is not only free but also gives you payslips that are optimized for mobile view.
3. If your payroll doesn’t create payslip online, you can’t ask for edits
Let’s face it, every payslip can’t turn out faultless. Some time or other, you might have to make some changes in the slip. These may be minor changes such as spelling errors or big ones such as incorrect bank names. This is highly unfeasible with manual payslips because it will involve further delays. So chances are very thin of these mistakes being rectified.
4. Salary register errors in manual payslip
No one wants an incorrect payslip, especially after a month of hard work. With online payslips, you do not have to worry as the register has no effect on the salary slips. As a result, your payslips will be perfect and so will your displayed earnings.
5. Lack of confidentiality
I’ll be honest, manual payslips are not secure. They can be accessed by anyone who may have a copy. So this is where online payslips become all the more necessary. Your details will be safe and no one will have access to your payslip except you.
6. Incorrect data entry
We’ve seen that PF number, UIDAI number, etc, are components of a payslip. Furthermore, these are essential details and your employers cannot risk misquoting them, but it happens in manual payslips. This is an infringement of your legal right and I’m sure you don’t want to take a chance.
How to create payslip online for free?
It’s clear from the previous sections that generating online payslips is both efficient and effective. But how do create payslip online and download for free? It’s simple, use a free payslip software! Let’s see how:
How does a create payslip online software work?
You may ask your payroll admin to sign up for a Asanify’s Payroll software. However if you want to do it yourself read … Here’s how it works:
Asanify Payroll Software helps us generate professional looking salary slips. This is very helpful during urgent situations when my teammates might need the salary slip urgently. Employees can just go and download from the Asanify web app quickly.
Senior Finance Manager, Khanal Foods
Time needed: 1 minute.
Enter the following information to generate your free payslip in under a minute
- Email to get started
This is so that we can contact you for relevant updates to our software
- Full Name
To identify who the payslip is for
- Employee ID
Employee ID uniquely identifies an employee in a company and is a required field for most institutions
This is your job title e.g. Branch Manager, Software Engineer, etc.
Enter which department you belong to. Examples include Engineering, Collections, etc.
- Payslip month
Salary slip is typically generated for a particular month. Please enter that here.
- Company details
- Bank Details
These are your account number and bank name details on which the salary will have been deposited
- Statutory details
PF, UAN, PAN etc. constitute statutory details. Also enter LOP (Loss of Pay) days for any given month that might have reduced your monthly salary
Enter your detailed earnings for the given month. This includes your gross salary, Basic, HRA, Telephone Reimbursements, Bonus, LTA, Commission and Special Allowance. Note that the amounts might get scaled depending on LOP days given in the previous step. For help with any components, drop us a line
These include your Employee PF contribution (employer contribution is NOT shown in salary slips), Income Tax, Provident Fund, Professional Tax, etc.). Note that for the free version, we don’t auto-calculate the taxes and deductions. Ask your payroll or HR admin to contact us if you need the full payroll software
- View summary and submit
This step shows you the full summary of what you are submitting. If you have to edit anything, click on the specific row. This will take you to the specific step and you can click on the summary button to get back.
- Receive personalized free payslip and enter feedback
Once you press submit, you will receive the payslip as per the below picture. Kindly enter your feedback so that we can improve the solution
Get your online payslip for FREE here!
Why should your payroll team create payslip online?
- As I said earlier, it is your right to receive monthly payslips. Manual payslip generation can cause delays and inaccuracies in your salary slips. And you certainly don’t want that, do you?
- When you understand the intricacies of your payslip, it will force your payroll team and employer to put more effort. Hence, encourage them to get an HRMS that does it all for you. Creating payslips online ensures that you have enough time to go over the details and ask for possible edits.
- With a free payslip generator like Asanify, you will have no trouble convincing your employer as there are no added costs of printing or posting. Work hard and get your payment in the most effective way by signing up with Asanify!
Create payslip online: Wrap Up
Let’s see what we covered in this guide to payslips.
- Understood what a payslip is, why it is important and what it comprises of.
- Detailed insights into what the challenges of generating manual payslips are and why it is necessary to create payslip online.
- Looked at how an online payslip software works and what benefits it has for an efficient payroll process.
You can make a salary slip through manual and online methods.
To create payslip online, use a salary slip software to instantly generate payslips. All you have to do is enter details and relevant values for income and deduction components.
Manual salary slips can be generated through Excel. You will have to add employee data in spreadsheets and then extract individual data to get it printed.
Online payslips have a standard format which is easy to use and understand.
It includes details such as employee ID, designation, earnings and allowances, tax deductions (PF,EPF, etc) and bank details.
Online payslip software allows you to also add your company logo within the format.