Free payslip template: Use it to simplify your payroll processes

Running a small business comes with a long list of responsibilities. High up on it is making sure your people are paid accurately and on time. Not only is this the right thing to do, it’s also a legal requirement in the UK.

You need to get it right every time.

That’s not always easy, especially if you’re new to running a business, don’t have a background in financial management, or if your payroll circumstances are particularly complicated.

So, any opportunity to make the pay run easier is one you should take.

In this article, we talk about payslips, and provide a free payslip template that you can adjust for your needs and use to simplify your payroll process.

Here’s what we cover

• Why use a payslip template?
• What does a UK payslip need to include for HMRC?
• Free payslip template download
• Final thoughts
• FAQs

Why use a payslip template?

The purpose of a payslip is to make it clear to your employees exactly what they’ve earned.

It allows them to see how much you’ve paid out, what makes up these earnings, any deductions that have been made, and how much they get to take home.

Payslips also act as a structured record that HMRC requires you to provide.

If you don’t do this, you could run into legal issues and make the financial audit process more complicated.

A payslip template helps you make sure you’re including all the legally required components, as well as deliver a consistent experience for employees that helps them to understand what they’re being paid.

It also saves you time during the pay run, as all you’ll need to do is enter information into the fields.

What does a UK payslip need to include for HMRC?

To clarify pay for your people and comply with HMRC, your payslips need to have these components:

• Pay before deductions: Also called gross pay, this includes salary, bonuses, and reimbursements.
• List of deductions: This includes taxes, National Insurance (NI), and pension contributions, as well as extras such as gym memberships and salary sacrifice arrangements.
• Pay after deductions: Also called net pay, this is the final amount the employee takes home.
• Number of hours worked: This only needs to be included if the employee’s pay varies depending on time worked.
• Method of payment: Such as BACS transfer or cash.
• Pay date: The date on which the payment will be made.

Free payslip template download

With this editable payslip template, you can make sure you’ve captured all the essential components, while delivering a consistent experience to your employees.

Here’s how to use it:

• Download the payslip template for the UK below.
• Add your company logo to the top right, and company name to the first table.
• Save your updated template.
• When it comes to your pay run, create documents from your new template for each employee and input all the required information.
• Give employees their payslips, which you can do by printing and handing them to the employee in a sealed envelope, or sending them electronically to an email address they have agreed to.

Note: You are legally required to send payslips on or before pay day.

Final thoughts

If you’re not using quality payroll software to automatically create your payslips, an editable payslip template is the next best thing.

Download it today, make it your own, and you’ll make every pay run a little faster and easier, without falling out of compliance.

FAQs

Why are payslips important for small businesses?

A payslip is crucial for clear communication with employees, ensuring compliance with HMRC regulations, and simplifying record-keeping for financial audits.

How does the free payslip template comply with HMRC standards?

The Sage payslip template includes all specific components required for HMRC compliance, covering all necessary details to meet legal standards.

Can I customise the payslip template for my business?

Yes. You can add your own logo and any additional fields you need. Just avoid removing the existing fields to ensure you’re meeting compliance requirements.

Is the payslip template suitable for businesses outside the UK?

While it’s specifically designed for UK businesses adhering to HMRC standards, the basic structure can be a useful starting point for businesses in other locations with minor adjustments. Be sure to check the compliance demands of your country.