You can use Microsoft Excel to calculate the salary of your employees. To help business owners manage payroll, Microsoft provides an Excel Payroll Calculator template that you can download and use for free. The conditions? You must have Microsoft Excel installed on your computer. This template has ready-made formulas and functions so you only need to enter employee data. After entering the data, the template will calculate net salary and generate employee payslips automatically.
Step
Step 1. Download the Excel Payroll Calculator template
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Click the Microsoft Office link in the Resources section of this article to access the Excel Payroll Calculator download page.
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Scroll through the Microsoft Office website and click the download link for the Payroll Calculator template in the Download the template section.
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Click the green Download box to the right of the page. Read Microsoft's terms of service, then click Accept.
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When the file download dialog box appears, click Save.
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Select the folder where the Excel Payroll Calculator template file is saved, then click Save. The compressed template file will download to your computer.
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Step 2. Extract the Excel Payroll Calculator template
- Open the folder where you saved the compressed template file, then open the downloaded file.
- Follow the guide to extract the compressed file. Once the file is extracted, it will open automatically in Microsoft Excel.
- You may need to click Extract or use a third-party application (such as WinZip) to extract the files, depending on the features and version of the operating system on your computer.
Step 3. Keep a copy of the template for calculating payroll
- On the Excel toolbar, click File, then select Save As to make a new copy of the file. Use this new copy as a payroll workbook.
- Select the folder you want, then name your workbook.
- Click Save. A copy of the workbook will be saved on the computer.
Step 4. Prepare the payroll workbook
The workbook template will open in Excel.
- Fill out the Employee Information workbook. Generally, this workbook will appear automatically on the screen. You will be asked to enter the employee's name, wages, and tax information (such as the amount of the deduction).
- Click the Payroll Calculator tab at the bottom of the Excel workbook to access and populate the Payroll Calculator workbook. You will be asked to fill in information regarding the employee's working hours, such as overtime hours, hours of admission, and hours of sick/leave.
