# How to Make a Payroll System with Payslip in Microsoft Excel – 4 Steps

The sample dataset has 6 rows and 8 columns. Cells with monetary values are in Accounting format.

### Step 1 – Creating a Dataset

• Enter the Employee names in the first column.
• Create 4 more columns for Pay/Hour, Total Hours worked, Overtime/Hour, and Total Overtime.
• Enter data values.

### Step 2 – Finding the Net Pay

Formulas will be used to find the Gross Pay, Income Tax (15%), and Net Pay.

• In G5, enterÂ the formula below:
`=C5*D5+E5*F5`

• In H5,Â enter the formula below:
`=0.15*G5`

• Enter the formula below in I5:
`=G5-H5`

### Step 3 – Calculating Total Values

• In D11, enterÂ this formula:
`=SUM(D5:D10)`

• In F11, enterÂ this formula:
`=SUM(F5:F10)`

• In G11, enterÂ this formula:
`=SUM(G5:G10)`
• Press Enter.

• Enter the formula below in H11 and press Enter.
`=SUM(H5:H10)`

• Double-click I11 and enter this formula:
`=SUM(I5:I10)`

### Step 4 – Creating the Employee Payslip

• Enter the starting fields: Employee Name, Gender, Earnings, Paid Days, and LOP Days as shown below.
• Enter the values. Here, Daniel Smith is the sample employee.

• Enter the values for Basic pay, Overtime Hours, and Overtime Rate.
• In C10, enterÂ the following formula:
`=C8*C9`

• Use this formula in C11:
`=C10+C7`

• Enter the Salary Advance and Other Deduction fields with their respective values.

• Enter the Tax and Loan fields and their monetary values.

• In E10, use the following formula:
`=SUM(E6:E9)`

• Enter the Net Pay formula in E11 and press Enter:
`=C11-E10`

Read More: Payroll Exercises in Excel

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Nazmul Hossain Shovon

Nazmul Hossain Shovon, a BUET graduate in Naval Architecture and Marine Engineering, embarked on his career with 8 months dedicated to the Exceldemy project's triumph. Transitioning into a Software Developer role, he specialized in web add-in development. At Exceldemy, he authored about 125 blog articles and solved many visitorsâ€™ problems, refining his writing skills and delving into Excel-related topics. With a primary passion for programming and software development, Shovon continually explores new horizons, fostering professional growth in his... Read Full Bio

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