Glossary
What is a payslip?
What a payslip is, what each line on it means, and how one month's pay is worked out from earnings and deductions.
Updated
In short
A payslip is the statement of an employee's paid days, earnings, deductions and net pay for one pay period. SimpleERP builds payslips from salary structures and attendance, and employees open their own on their phones.
A payslip is the statement an employee receives for each pay period, showing paid days, each earning, each deduction and the net pay. It is the employee's proof of income for loans, rent and tax, and the employer's record of what was withheld for income tax, social security and pension on the employee's behalf.
Payslip: a worked example
Sam K is the store keeper at Harbour Steel Furniture, a fictional business paying in US dollars. His payslip for September 2026 covers every working day of the month.
| Earnings | Amount | Deductions | Amount |
|---|---|---|---|
| Salary | $2,600 | Income tax withheld | $360 |
| Allowance | $400 | Social security (employee) | $180 |
| Pension, 5% of gross | $150 | ||
| Gross pay | $3,000 | Total deductions | $690 |
FAQ
Questions, answered
What must a payslip show?
At least the employee's name, the pay period, each earning, each deduction and the net pay. Many countries also expect the employer's name, hours or paid days, and year-to-date totals. Your local employment rules may ask for more, so check them.
Is a payslip the same as a salary certificate?
A payslip is not a salary certificate. A payslip covers one pay period. A salary certificate is a letter from the employer confirming the employee's role and pay, often asked for by banks. Many countries also have an annual statement of pay and tax withheld.
Can employees download their own payslips in SimpleERP?
Employees can download their own payslips in SimpleERP. With a self-service login, an employee sees their own payslips once the month's run is approved and can download each as a PDF from their phone. They cannot see anyone else's pay.
How long should a business keep payslip records?
Employment and tax laws expect pay records to be kept for several years, and the period differs by country. Keep payroll records at least as long as your books of account, and check the current rules with your accountant.
Related
Keep reading
Gross vs net salary
Gross is total earnings before deductions; net is what reaches the employee's bank after them.
Read morePayroll register
One row per employee and one column per pay component for a month, with totals that match the salary journal.
Read morePayroll
Salary structures, monthly runs and payslips with your earnings and deductions, posted to the books.
Read more
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