A Payslip is a record detailing the remuneration given to an employee at the end of each pay period.
Ideally a payslip should reflect the following information:
- Company Name and Details
- Employee Name and Clock Number
- ID Number
- Tax Number
- The Tax Period Worked i.e. August would be period 6
- The Pay Date
- The Cost Centre (Optional)
- The Pay Point (Optional)
- Bank Account details
Other non-compulsory details:
- Employee Address
- UIF Number
- SARS – PAYE Number
Payslips should be divided into 5 sections:
- Contractual Deductions
- Voluntary Deductions
- Company Contributions
- Year to Date Figures
Earnings: These will be made up of earnings due to the employee i.e. Basic Salary, Overtime, Travel Allowance, Reimbursive Travel, Shift Allowances, and Standby Allowances.
Contractual Deductions: are deductions that have been agreed to as per the letter of appointment, these include Medical Aid & Retirement Fund Deductions, PAYE, UIF
Voluntary Deductions: these are deductions that an employee has agreed to and given signed permission to the company to deduct. These include Canteen Deductions, Union Subscriptions, Loans, Advances.
Company Contributions: These are contributions that form part of the employee’s fringe benefits e.g. Company Contribution to a Retirement Fund, Company contribution to Medical Aid etc.
Year to Date Figures: A total of the individual elements either earnings or deductions for the current Tax Year. At the end of the Tax Year, the figures on the final payslip will tie up with the figures on the Tax Certificate.