Very often, pay slip is one of the documents that the company prints for their employees. The employees may need the pay slip for their personal use.
Perhaps you are one of the persons who receive this slip. Anyway, what does the pay slip mean? What is the use of paycheck for the receiver and giver? Who is the target or the object entitled to receive it?
A pay slip is an authentic evidence of salary receipt from an employer to a worker or employee. It contains certain nominal parts, either detailed or simply summarized, related to their net salaries, such as basic salary, additional salary, and salary deductions including the amount of the loan if any. Companies that adopt the net salaries and gross up methods, the pay slip is issued.
The Benefits of pay slip:
For the company:
a. It serves as the official record that the company has performed its obligations to the employees related to the certain amounts of employees’ rights
b. It serves as the documenation of salary expenses or wages as the company’s expenditure.
For Employees:
a. pay slip serves as an evidence of the payroll component process for employees
b. valid evidence for tax deduction and income tax information
c. referrals for financing institutions or credit loan on the basis of employee’s application as an authentic evidence.
It is important to keep payslip properly for these reasons:
- Security. Payslip contains personal information and earning. Keep the payslip properly to avoid being used for identity fraud.
- Record keeping. To keep the earning and tax payment record in case they are required for specific purpose.
Zahir Accounting provides a product that can generate pay slips easily and automatically, that is by using Zahir Payroll. By using Zahir Payroll, the salary is automatically calculated, what will be easier and faster. It also prevents the user from making mistakes, such as miss-typed or miscalculation.
