How to make a payslip

What you need first

• Your business name, and the employee’s name and payroll number.
• The employee’s tax code and National Insurance number.
• The pay date and the tax period (week or month number in the tax year).
• Salary for the period, or hours and rate, plus any overtime, bonus, holiday or sick pay.
• The Income Tax, National Insurance, pension and any other deductions calculated by your payroll software or accountant.
• Year-to-date totals from the previous payslip.

Step by step

1. Enter the employer and employee details exactly as in your payroll records.
2. Add the tax code, National Insurance number, pay date and tax period.
3. List each payment on its own line. If pay depends on hours worked, show the hours.
4. List each deduction on its own line with a clear label.
5. Work out net pay: gross pay minus deductions, plus any reimbursed expenses.
6. Update the year-to-date totals.
7. Check it against the payment you are making, then give it to the employee on or before payday.

A payslip records real pay. Only make one for payroll you run or are authorised to prepare, with figures from that payroll.

Using a payslip generator

A generator lays the payslip out and adds up gross pay, deductions, net pay and year to date as you type. PayDocs works this way. It does not calculate PAYE, National Insurance or pension; you enter the amounts from your payroll.

Questions