How to Draw Payroll Process Flowchart in Excel (with Easy Steps)

Excel is the most widely used tool for dealing with massive datasets. We can perform myriads of tasks of multiple dimensions in Excel. Sometimes Excel comes in handy in drawing a flow chart too. I will show you how to draw a payroll process flowchart in Excel with easy steps in this article.

Introduction to Payroll Process Flowchart

Payroll processing refers to reimbursing employees for their work. This process includes the calculation of basic salaries, deductions, bonuses, etc. These steps can be performed manually, but an automated process is usually more accurate and organizations find it effective too.

A Flowchart follows some protocols. Each element in the diagram is shown using different shapes. For example, a Rectangle will indicate the initiation or termination of a flowchart. Some other shapes and their meanings are given in the below screenshot.

Shapes and Explanations

How to Draw Payroll Process Flowchart in Excel: Step-by-Step Procedures

I will discuss how you can draw a payroll process flowchart in Excel. I have divided the whole procedure into 6 easy steps. Moreover, the flowchart is also kept very simple so that you can understand the process well.

Without further ado, let’s have a look at the steps.

Step 1: Calculate Basic Pay

The first step is to take the basic pay into account. But before that, I will initiate the flowchart diagram.

  • To do so, go to the Insert tab.
  • Then, click Illustrations.
  • After that, go to Shapes.
  • Finally, select the Rectangle shape.

Inserting rectangle

  • After that, place the rectangle.

Inserting rectangle

  • Then, you have to change the fill color of the rectangle. To do so,
  • First of all, select the rectangle.
  • Then, go to the Home tab.
  • After that, select the drop-down box for Fill Color.
  • Finally, choose a color.

Changing color

  • After that, Excel will change the Fill Color.

Changing color payroll process flowchart in excel

  • Then, double-click inside the rectangle and activate the editing mode.
  • After that, write ‘Start’ to initiate the flowchart.

Edit rectangle

  • Now, I will add the calculation of basic pay to this chart. To do so,
  • Go to the Insert tab.
  • Click Illustrations.
  • After that, go to Shapes.
  • Finally, select the Parallelogram shape.

Add parallelogram

  • Then, place the Parallelogram correctly and write ‘Basic Pay’ after activating the editing mode.

Add parallelogram

  • Then, you have to show the sequences. To do so, you can use an Arrow from the shapes.

Show sequences

  • On using an Arrow, the flowchart diagram will look like this.

Show sequences

Step 2: Measure Allowances

After the basic pay calculation, you need to consider the allowances to draw a payroll process flowchart in Excel. The allowances may include

  • House allowance
  • Transportation allowance, etc.

The manifestation is simple and requires no new operation. You simply need to,

  • Add another rectangle.
  • Write ‘Add Allowances’ in the rectangle.

The output will look like this.

Shapes and Explanations

Step 3: Deduct TDA

Next, you have to calculate the Tax Deducted at the Source. Additionally, you may need to deduct all other dues from the payment.

  • This is how your output should look like.

TDA Calculation payroll process flowchart in excel

Step 4: Calculate Total Payment

Now, you have to calculate the total payment. This is the result of the addition of all allowances to the basic pay and the deduction of all dues from the basic pay.

  • With the same procedure of inserting a rectangle, you can do that.
  • Your output will look like this.

TDA Calculation payroll process flowchart in excel

Step 5: Add Print Statement

Now, if required, you can add a print statement to your flowchart. This is a decision that you need to take. Hence, this will require a Diamond shape.

  • The Diamond shape is in the list of shapes.

Diamond Shape payroll process flowchart in excel

  • After adding the shape, edit the way you want.
  • The output may look like this.

Print Statement payroll process flowchart in excel

Step 6: Terminate FlowChart

The flow chart is almost complete. You just need to indicate the termination now.

payroll process flowchart in excel

  • With this, the flowchart is complete.

Download Practice Workbook

Download this file and practice.


In this article, I have demonstrated how to draw a payroll process flowchart in Excel. I hope it helps everyone. If you have any suggestions, ideas, or feedback, please feel free to comment below.

Related Articles

<< Go Back to Excel Payroll Templates | Excel HR Templates | Excel Templates

Get FREE Advanced Excel Exercises with Solutions!
Akib Bin Rashid
Akib Bin Rashid

AKIB BIN RASHID, a materials and metallurgical engineer, is passionate about delving into Excel and VBA programming. To him, programming is a valuable time-saving tool for managing data, files, and internet-related tasks. Proficient in MS Office, AutoCAD, Excel, and VBA, he goes beyond the fundamentals. Holding a B.Sc in Materials and Metallurgical Engineering from Bangladesh University of Engineering and Technology, MD AKIB has transitioned into a content development role. Specializing in creating technical content centred around Excel and... Read Full Bio

We will be happy to hear your thoughts

Leave a reply

Advanced Excel Exercises with Solutions PDF