Unless you are living under a rock, you can't deny that exchanging monetary units is ubiquitous in this economic-driven world. It is basically part of survival. But, any person…continue reading
8+ Sample Salary Receipts
What are salary receipts?
Salary receipts, also known as wage receipts or payroll receipt, are official receipt issued to an employee upon payment from a job. It contains the salary to which one is entitled. A salary receipt is comparable to a standard type of receipt in that they both serve the same goal. This is a vital legal document that has to be obtained by every employee from their individual employers to act as proof as well as a basic explanation of their monthly earnings and deductions. A salary receipt is signed by employees to attest and admit that he or she got his or her salary samples on a certain payment period. Employers are compelled by law or any employment regulation or process to produce a breakdown of their employees’ salaries.
Uses of Salary Receipts
This document does not only benefit one, but it helps both the employers and the employees. Here are some examples on it’s usage.
How to Make a Salary Receipt?
Although the salary receipt format varies depending on the company or employer, it serves the same purpose. You can create the perfect receipt for every occasion with the aid of these salary receipt sample and with these steps:
Company Name or Name of Employer:
To start off, the name of the company or the employer should be provided. Most cases, a company name is displayed at the top of the document. Some companies put their company logos.
The basic pay is the amount agreed upon between a firm and its employee that does not include bonuses, overtime, or any other kind of additional remuneration. In contrast, gross salary includes overtime pay and bonuses but excludes taxes and other deductions.
Employers profit from improved productivity when employees are obliged to work overtime. More work is being done over longer periods of time, which implies that products and services are being supplied at a rapid pace. With this the employers get compensation for doing a harder work than the usual and makes them earn more in their salary. On the other hand, absences may result in a deduction from your pay. For monetary or property damage or loss, including work equipment, tools, equipment, and vehicles. Tardiness incentives, and half days are generally included as well
After doing the math with all the breakdowns of the basic salary, overtimes, deductions and other determining factors that make up an employee salary, there should be a clear understanding of what’s left for the employee to receive and this part sums it up.
Mode of payment:
Payments can be made in a variety of ways. Each payment method has advantages and disadvantages usually it depends on the employer what to use. Some employers use cash since it is the most common way, some use cheque as it is safe and you don’t walk around carrying a huge amount of money subject for theft. Also, some use mail transfer and bill of exchange.
In small firms, the salary and its breakdown are often handed as cash in the hands of the employees, and the employees are requested to sign on a piece of paper that serves as confirmation that they have received their payment.
1. Should salary receipts or salary invoice be kept confidential?
For employers, salaries are kept private because persons in the same position, with the same credentials and duties, get varying pay. Salary is determined by a number of factors, each of which contributes to an individual’s pay. Also, on the employees end, that documentation, generally referred to as an employee payment slip, contains personal details of the company that must be kept private and secure.
2. What to do when there is an error in a salary receipt such as overpayment to an employee?
If you overpaid your employee’s salary, wages, or remuneration due to a clerical, administrative, or system error, you have the option of having the employee refund you the net amount of the salary overpayment.
3. Does an employee need to have an acknowledgement letter for a salary receipt?
A salary acknowledgement letter is a letter that can be preserved as documentation that an employee’s compensation has been authorized. This is a formal technique of informing an employee of their pay. It can be maintained by the employee as documentation if needed later, such as to show that a specific amount has been accepted.
It is your job as an employer to give well-designed wages receipt that include vital information so that workers are completely informed of their wages and to avoid future legal conflicts with former or present members of the company. This is essential to both ends of the employer and the employee as protection, too. You may also check out the salary receipt templates provided above.