Payslip Distribution

Payslips or salary slips are documents issued by the employer to the employees, containing the detailed breakdown of an employee’s earnings and deductions for a given salary period which can be weekly, bi-weekly, or monthly.

Employee Payslips are generally distributed either in hard copies in the form of printouts, published through online portals in an employee self-service model, or emailed to employees after they are given secure access. An employer is legally obliged to provide a payslip copy to every employee in his payroll.

Payslips are important to the employees for many reasons. Hence, the employer must ensure payslips are generated at the end of each pay cycle and distributed to the employees.

Two major reasons why the payslip is important are that the salary slip contains the breakdown of your employee’s salary which can help them understand their take-home salary, taxes paid to the government and other mandatory payments such as income tax, Employee Provident Fund (EPF) contribution, and employee insurance, etc. The second reason why the payslip is important is that various financial institutions refer to payslips when assessing the credit eligibility to provide loans or issue credit cards.

A payslip is authentic evidence of salary receipt from an employer to a worker or employee. It contains certain nominal parts, either detailed or simply summarized, related to their net salaries, such as basic salary, additional salary, and salary deductions including the amount of the loan if any.

The Benefits of a Payslip:

For the company:

It serves as the official record that the company has performed its obligations to the employees according to certain laws on employees’ rights.
It serves as the documentation of salary expenses or wages as the company’s expenditure.

For employees:

The payslip serves as evidence in certain cases of mistreatment by the company’s management.
It is valid evidence for tax deduction and income tax information.
It serves as a referral for financial institutions or credit loan companies when considering the employee’s credibility and integrity during their application process.

It is important to file payslips properly for these reasons:

Security: A payslip contains personal and sensitive information on the employee’s earnings. Keep the payslip properly to avoid being a victim in identity fraud.
Record keeping: To keep the earning and tax payment record in case they are required for specific purposes or emergencies.

Payslips or salary slips are documents issued by the employer to the employees, containing the detailed breakdown of an employee’s earnings and deductions for a given salary period which can be weekly, bi-weekly, or monthly.

Employee Payslips are generally distributed either in hard copies in the form of printouts, published through online portals in an employee self-service model, or emailed to employees after they are given secure access. An employer is legally obliged to provide a payslip copy to every employee in his payroll.

Payslips are important to the employees for many reasons. Hence, the employer must ensure payslips are generated at the end of each pay cycle and distributed to the employees.

Two major reasons why the payslip is important are that the salary slip contains the breakdown of your employee’s salary which can help them understand their take-home salary, taxes paid to the government and other mandatory payments such as income tax, Employee Provident Fund (EPF) contribution, and employee insurance, etc. The second reason why the payslip is important is that various financial institutions refer to payslips when assessing the credit eligibility to provide loans or issue credit cards.

A payslip is authentic evidence of salary receipt from an employer to a worker or employee. It contains certain nominal parts, either detailed or simply summarized, related to their net salaries, such as basic salary, additional salary, and salary deductions including the amount of the loan if any.

The Benefits of a Payslip:

For the company:

It serves as the official record that the company has performed its obligations to the employees according to certain laws on employees’ rights.
It serves as the documentation of salary expenses or wages as the company’s expenditure.

For employees:

The payslip serves as evidence in certain cases of mistreatment by the company’s management.
It is valid evidence for tax deduction and income tax information.
It serves as a referral for financial institutions or credit loan companies when considering the employee’s credibility and integrity during their application process.

It is important to file payslips properly for these reasons:

Security: A payslip contains personal and sensitive information on the employee’s earnings. Keep the payslip properly to avoid being a victim in identity fraud.
Record keeping: To keep the earning and tax payment record in case they are required for specific purposes or emergencies.

How Do Employers Generate Pay Slips for Employees?

There are two ways for an employer to deliver a payslip, either by printing it or sending it as a PDF or any digital format. If electronic delivery is the method chosen by the employer, it is a good idea to notify the employees when their pay has been actioned. Employees, however, might prefer a more traditional method, in this instance printing followed by mailing the document would be an alternative.

By using a template, the employer will keep good records and make sure that nothing is missing on the employee payslips. Most modern companies generate payslips using electronic templates which make it easy to follow the process and requirements.

When the employer distributes the printed or electronically generated payslip, it is crucial to make sure each employee’s information is accurate. The wage information and critical personal data must be reviewed with accuracy before saving and sending it by mail or email to an employee.

A Typical Payslip Format

Although the content on payslips can be done in different ways using different payslip templates, there are some fundamentals that must be included:

Gross pay: This is the initial payment before any tax has been deducted.
Net pay: If you have to pay a tax, you will see your net pay figure, which is the amount that you receive after tax is deducted.
The payroll number: Every individual is allocated a unique payroll number, often generated by the company’s payroll software.
Tax file, pension file, and social security file numbers: If you are required to pay any taxes or contributions according to law, you will be assigned unique file numbers for the purpose of keeping records with the government agencies.
Sick leave and other types of leave: Sick leave and maternity or paternity leave may be itemized separately on your payslip.

In Malaysia, employers, by law, must provide employees with payslips which include personal data such as proof of earnings, tax paid, and any pension contributions. Furthermore, it is recommended that management or the accounting department of any business take steps to protect and securely distribute the payslip information.

Emailing Payslips

Just as posting the payslips by mail is permissible, so is using any form of technology to do so. Having said that, the payroll expert responsible for that operation should have the proper skills to take steps to securely protect each employee’s payslip. E-payslips should be protected by a password that is uniquely set by the employee and sent directly to the employee’s chosen email address.

It is considered a breach of legislations to use a generic and identical single password for all employees. The employer could be seen as not taking sufficient steps to achieve the most secure environment to protect employee’s personal payroll information.

There are two ways for an employer to deliver a payslip, either by printing it or sending it as a PDF or any digital format. If electronic delivery is the method chosen by the employer, it is a good idea to notify the employees when their pay has been actioned. Employees, however, might prefer a more traditional method, in this instance printing followed by mailing the document would be an alternative.

By using a template, the employer will keep good records and make sure that nothing is missing on the employee payslips. Most modern companies generate payslips using electronic templates which make it easy to follow the process and requirements.

When the employer distributes the printed or electronically generated payslip, it is crucial to make sure each employee’s information is accurate. The wage information and critical personal data must be reviewed with accuracy before saving and sending it by mail or email to an employee.

A Typical Payslip Format

Although the content on payslips can be done in different ways using different payslip templates, there are some fundamentals that must be included:

Gross pay: This is the initial payment before any tax has been deducted.
Net pay: If you have to pay a tax, you will see your net pay figure, which is the amount that you receive after tax is deducted.
The payroll number: Every individual is allocated a unique payroll number, often generated by the company’s payroll software.
Tax file, pension file, and social security file numbers: If you are required to pay any taxes or contributions according to law, you will be assigned unique file numbers for the purpose of keeping records with the government agencies.
Sick leave and other types of leave: Sick leave and maternity or paternity leave may be itemized separately on your payslip.

In Malaysia, employers, by law, must provide employees with payslips which include personal data such as proof of earnings, tax paid, and any pension contributions. Furthermore, it is recommended that management or the accounting department of any business take steps to protect and securely distribute the payslip information.

Emailing Payslips

Just as posting the payslips by mail is permissible, so is using any form of technology to do so. Having said that, the payroll expert responsible for that operation should have the proper skills to take steps to securely protect each employee’s payslip. E-payslips should be protected by a password that is uniquely set by the employee and sent directly to the employee’s chosen email address.

It is considered a breach of legislations to use a generic and identical single password for all employees. The employer could be seen as not taking sufficient steps to achieve the most secure environment to protect employee’s personal payroll information.

Remote Self-Service Access

One of the recommended options is for businesses to provide individuals with a secure self-service platform offering free remote access to information held. Similar to a bank system, these systems should offer a secure self-service portal to securely send and store a payslip file and other tools to manage sensitive payroll documents.

Having online access to payslips and personal contact details through a remote access security system will provide flexibility and full transparency for the user to view, download and update their key information at any time.

Are you looking for a payroll partner to help you distribute employee payroll securely and efficiently? Call us or email us today to find out how our team at InTune Outsourcing can help you.

One of the recommended options is for businesses to provide individuals with a secure self-service platform offering free remote access to information held. Similar to a bank system, these systems should offer a secure self-service portal to securely send and store a payslip file and other tools to manage sensitive payroll documents.

Having online access to payslips and personal contact details through a remote access security system will provide flexibility and full transparency for the user to view, download and update their key information at any time.

Are you looking for a payroll partner to help you distribute employee payroll securely and efficiently? Call us or email us today to find out how our team at InTune Outsourcing can help you.

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InTune Outsourcing - Creating Financially Driven Businesses and Entrepreneurs.

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Every SME Can Become Large

InTune Outsourcing - Creating Financially Driven Businesses and Entrepreneurs.

Show Me How