Navigation:  Payslips > Issuing a payslip

Payslip has three sections:

Earnings is what employee has earned during the pay period such as wages, salary, bonus, commission or allowance. Total earnings is called gross pay.

Deductions is what you have deducted from gross pay. The most common deduction is payroll tax but other deductions such as insurance, union fees or even wage garnishment. Gross pay is reduced by total deductions to arrive at net pay which is payable to employee.

Employer contribution is a special section on payslip which represents items which are earnings and deductions at the same time thus not affecting net pay payable to an employee. For example, you might be obligated by law to contribute to a pension fund of an employee.

When you create a payslip, net pay amount will be posted to Employee clearing account.