Payroll Slip template

About This Template

This payroll slip template is designed for HR managers and employers to streamline the monthly payroll process. It gives you one place for each employee's details, gross pay, deductions and net salary, with sections for holiday balances and sick days, so each payslip is consistent and easy to check.

Why is payroll so important?

Legal Obligation: Companies have a legal obligation to process accurate payroll for their employees. This includes compliance with tax and social security regulations.

Transparency and trust: A clear and comprehensible payslip promotes employees' trust in their employer. It serves as proof of the proper payment of salary and deductions.

Basis for tax returns and social benefits: The payslip is an important document for employees for their own tax returns and proof of income to authorities and institutions.

Basic components of payroll

Gross salary: The gross salary includes the employee's entire income before deductions.

Deductions: In the UK these are Income Tax and employee National Insurance, both collected through PAYE, plus workplace pension contributions and any student loan repayments.

Net salary: The net salary is the amount that is paid to the employee after all deductions.

Calculate payroll

In order to calculate a payroll, various components must be taken into account. Here is a step-by-step guide:

1. Determination of gross salary

The gross salary is the starting point for the calculation. It includes the basic salary as well as possible supplements, bonuses and other monetary benefits.

2. Income Tax

Income Tax is deducted through PAYE using the employee's tax code. Most employees have a Personal Allowance of £12,570 a year (2026/27), and tax is only due on pay above it.

3. National Insurance and pension contributions

Employee National Insurance applies to earnings above the primary threshold of £242 a week (2026/27), and you pay employer National Insurance on earnings above £96 a week. If the employee is enrolled in a workplace pension, their contribution also comes off their pay.

4. Determination of net salary

The net salary is calculated by subtracting the sum of all deductions (taxes and social security contributions) from the gross salary. This is the amount that will be paid to the employee.

5. Consideration of other deductions and surcharges

If applicable, further deductions (such as an attachment of earnings order) or additions (such as overtime, shift allowances or bonuses) must be taken into account in the payroll.

6. Preparation of payroll

The final payslip should detail all of the above points and be made available to the employee. It is important to ensure that the presentation is clear and understandable.

What do you have to consider when making payroll?

Up-to-dateness of the data: It is essential that the payroll is based on the latest tax and social security regulations.

Accuracy: Errors in payroll can lead to disagreements with employees and authorities. It is therefore important to check the statements carefully.

A payslip is only as right as the hours behind it. Payroll preparation in Shiftbase turns approved timesheets into payroll-ready hours that you export as a CSV or send through a payroll integration; the payroll run itself stays with your payroll provider or accountant.

Data protection: Employees’ sensitive personal data must be protected and treated confidentially.

Advantages of an Excel payslip template:

✅Cost efficiency: Using an Excel template saves costs on specialized software and external service providers.

✅Flexibility and Customizability: Excel templates can be easily customized to suit a company's specific needs.

✅Automation: Many calculations can be automated in Excel, which reduces the likelihood of errors and increases efficiency.

Payroll is a complex but essential process within human resources management. Using Excel templates can provide a cost-effective, flexible and reliable solution to meet the needs of both the business and employees.

How long should I keep my payslip?

In the UK, HMRC requires employers to keep payroll records, including what each employee was paid and the deductions made, for 3 years from the end of the tax year they relate to.

It is important to note that this retention requirement applies not only to the payslips themselves, but also to all documents relevant to the calculation of salary. This can include, for example, timesheets, surcharge calculations and similar documents.