While we discuss printable payroll templates, the most important thing to understand first is payroll itself. Payroll is the total amount that an employer or company has to pay to their employees or workers for a particular period of time i.e. 1 week or 1 month. Usually, this payroll sheet has much more information to offer. Commonly, a payroll sheet includes a complete list of all the employees in a company and their payable salaries for a specific period of time. Keep in mind that the total sum of payroll is usually different for each month because there are multiple factors contained i.e. employee strength, worker’s attendance, deductible taxes, overtime, and bonuses.
Importance of Payroll Templates:
Most people misunderstand payroll as the system that calculates your salary and that’s the entire role of this system. In reality, there are many advantages that employers can get from payroll sheets. For instance, at any given moment, the employer can quickly check the payroll list and see how many employees are working on his payroll. He can also check this list to confirm the payable amount in the form of salaries and wages for each month. Then there is the added benefit of deductions and bonuses that can be calculated very easily on the same payroll sheet. A payroll sheet is a list of employees with details including; the month for which salary is calculated, the total earned salary of each employee, total hours each employee worked, added bonuses and compensations, tax deductions, and other deductions i.e. retirement fund or provident fund.
In the end, in front of each employee is the final figure or net income for the given month. Not only an employer can quickly verify the income of each employee but employees can also get to see their salary statement derived from the same payroll system to check and verify how much the employer deducted from their salaries.
Free Payroll Templates:
Here are previews and download links of these Free Payroll Templates to help you with your routine payroll challenges.
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Legal aspects of the Payroll Sheet:
From Employees’ Point of View:
You can think of all the good reasons why employees work in your company and how proud they are to work for you but keep in mind that in the end, it all comes down to getting paid for your services and hard work. A happy employee is a myth but sometimes it’s easy to crack the comfort and satisfaction of employees because getting paid makes employees happy. With this being said, if your employees find out or assume that you are not paying them exactly what they earned, it can create certain problems for you. Let’s say that an employer is not committing fraud on purpose but there is some mistake in his payroll system and he is deducting 1% extra tax from the salaries of the employees. If employees report this error to the taxation department, the employer can face a huge lawsuit.
From the Employer’s Point of View:
If you ask business owners why they started their business or what their company’s core purpose is, the most common answer is; to make money. There are some not-for-profit organizations but money is still the most important aspect and element of running a company. Being the owner of a business, you can’t just let the employees take more than what you owe them for their services. A solid payroll system ensures that employees are paid what they earn. First of all, this system calculates the total hours of work for each employee, and then there are the added bonuses or deductions for tax purposes and other benefits i.e. healthcare and social security, and retirement fund. A proper payroll system ensures that employers calculate the earnings or income of each employee without any error and deductions are made before salary is transferred to their accounts.
From the Tax Department’s Point of View:
Because most the employers transfer salaries of their employees directly into their bank accounts, the whole process makes it easy for the taxation department to check and verify how much tax is owed by each individual. This way the employer is allowed by the taxation department to deduct payable tax from the salaries of the employees and transfer the amount to the relevant department. The payroll sheet is the most important document here because it allows the tax department to check and verify how much income each employee got for the previous month and how much tax he needs to pay on it.