Microsoft Excel is a powerful program. In addition to this, it is quite easy and handy to operate. Also, productivity and utilization are increasing day by day. Fortunately, it can be used in all government and private organizations for various purposes. However, we can also utilize this software in order to prepare a salary payment voucher format. In this article, I will show you a step by step procedure to create a salary payment voucher format in Excel. Go through it carefully and save your time.
What Is Salary Payment Voucher Format?
Usually, a salary payment voucher contains all the information regarding the payment due to an employee for various tasks completed by him during a specific time period. It contains information about employees’ base salary, allowances, health insurance, deductions, overtime and many more. The Human Resource department creates this document to determine the compensation of its employees in a business. It is known as a salary sheet or salary payment voucher. It includes financial data for employees, including their salaries, earnings, leave time, deductions, bonuses, and other benefits.
How to Create a Salary Payment Voucher Format in Excel: Step-by-Step Procedures
Fortunately, you can create a salary payment voucher format in Excel easily. Just you have to follow the steps mentioned below in order to properly complete the operation. For the purpose of demonstration, I have selected an employee named Michael Scott from ABC Company. Now, I will create a salary payment voucher format for him.
Step 1: Enter Company Details
Initially, write down the name of the company, company location, and payment voucher month and year in the first rows of the file.
Step 2: Create Employee Details to Create Salary Payment Voucher Format
Secondly, provide the employee details such as name of the employee, ID, designation, department, joining date and many more. In addition to these, this part includes total working days, LOPs (Loss of Paydays), and bank details of the employee.
Step 3: Calculate Earnings
In this part, I will calculate the total earnings of the employee. For this reason, I have selected the Basic Salary as 45% of the Gross Salary. Write down the following formula in cell C14.
Similarly, I have chosen the House Rent Allowances as 40% of the Basic Salary and Conveyance Allowances as 1600$, Medical Allowances as 1250$ and some Special Allowances for a total of 30 working days.
Now, input the following formula in order to calculate the Net Salary. Here, I have used the SUM function.
Lastly, you will receive the Net Salary as shown in the below picture.
Read More: How to Create Payment Advice Format in Excel
Step 4: Calculate Deductions
Furthermore, I have calculated EPF, Health Insurance and other taxes to deduct from Net Salary. At first, enter the formula below to calculate EPF. In this case, I have utilized the IF function.
Similarly, you can calculate Health Insurance and sum them in order to find the Total Deductions.
Step 5: Estimate Net Pay
Finally, insert the following formula in order to calculate the Net Pay of the employee.
Lastly, the salary payment voucher is ready as shown in the image below.
💬 Things to Remember
- You can change the employee details and gross salary according to your company.
- Moreover, I have chosen Earnings and Deductions However, you can easily change them according to your company structure.
Download Practice Workbook
You can download the workbook used for the demonstration from the download link below.
These are all the steps you can follow to create a salary payment voucher format in Excel. Hopefully, you can now easily create the needed adjustments. I sincerely hope you learned something and enjoyed this guide. Please let us know in the comments section below if you have any queries or recommendations.