Checklist for Payslips
After creating your employees’ salary slips using the simple Salary Slip Format, you need to make sure nothing has been forgotten. In order to avoid making mistakes, you should follow a payslip checklist. This will ensure no information has been missed out and save everyone time and stress. Download our free payroll checklist template below to ensure everything is covered.
Make sure your leave is accrued
Despite not being a legal requirement, some companies include employee leave accrual on their payslips. Checking employee leave accrual is a common mistake. If you’re going to do so, be sure that each individual’s leave time is calculated correctly and at the same rate every pay period. When sending the payroll slip template, make sure you input this information.
Hours worked overtime
Inputing incorrect overtime hours into the payroll check template is another common mistake. Make sure to pay overtime workers the correct amount according to your overtime policy if they work overtime. You should be aware of the overtime workers and the rate at which overtime is paid. Some companies pay the same amount as regular hours, while others pay 1.5 hours or double time. You should familiarize yourself with this as it varies from organization to organization.
Contributions and deductions
In payroll, deductions are types of payments an employee makes to cover employment expenses. Below is a list of common deductions:
- An employee’s paycheck will be deducted from if he or she is enrolled in a company’s health insurance plan.
- Employer-provided life insurance is not eligible for this deduction if employees have signed up for life insurance through their workplace.
- In the event of an injury, accident, or death, Accidental Death & Dismemberment (AD&D) provides financial protection to employees depending on the types of accidents included in the plan.
- A defined benefit pension plan is one in which an employee receives a set amount of money upon retirement. A defined contribution pension plan is one in which an employee receives a set amount based on their salary and the length of time they have worked for the company. Below is an example of a defined contribution retirement plan.
- Employees who wish to save money for retirement can contribute directly to their 401(k)/Registered Retirement Savings Plans. This money is deducted from their paychecks directly.
It is of the utmost importance that you familiarize yourself with the taxes, social security, insurance, pension schemes and any other contributions your employees are required to make. Deductions and contributions must be accurate in order to avoid legal penalties, since many withholdings are required.
Pay for public holidays
If an employee has to work on a public holiday, they should receive the appropriate holiday rate pay. This could be standard pay, pay and a half, or double pay. This will be determined by each organization.
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