Salary is like an achievement for all the hardships endured to earn it. So every detail regarding earning and receiving a salary should be carefully preserved so as to track the negotiations and strings attached to it. This is where the importance of pay slip comes into the limelight as it is the piece of document which every employee receives in the form of a paycheck or indicating the deposit transaction. It is supposed to contain information about the net income after other deductions and taxes have been extracted from it. Pay slip have tremendous importance apart from being a gateway to switching jobs. They are utilized as essential proofs prior to taking loans and investment purposes. They should be preserved well, and it is effective if the thing comes in a printed format sanctioned by the Inland Revenue.
They should have dates printed on them, without which they would be meaningless. Apart from containing details about the person's income, it also includes information like incentive, stock purchase, overtime, and pension. A person can show his pay slip while applying for a loan. People who lose or misplace their pay slip by mistake can retrieve a duplicate P60 from companies issuing them. It is a common phenomenon to lose a pay slip but there are ways to get replacements in for of printed forms. It only requires the person who has lost his pay slip to provide the necessary information to the company to receive a copy of the original one. There are choices like standard laser pay slips, custom pay slips, dot matrix pay slips and plus laser pay slips. What is a salary certificate exactly? When the employee of a company receives his salary, he has to sign on a piece of paper acknowledging that he has received compensation for the work done over the past month. The company on the other hand needs to sign on the same piece of paper saying that the employee has been paid compensation of the money owed to him on account of the work done over the past month. That piece of paper is the salary certificate. What is the need for a salary certificate? Let us look at it from the point of view of the employer first. Suppose the employee works the whole month and receives his compensation from the employer.
Now, an unscrupulous employee can claim that he never received the money owed to him, despite being paid, or that he was underpaid. So to protect themselves from such a situation, the company takes the signature of the employee on salary certificate which serves as accounting proof that the employee has indeed received his salary, the amount of which was the same as agreed in his contract and as mentioned in the salary slip. We can also look at the salary certificate's significance from the point of view of the employee on the payroll. If the employee's salary has not been paid on the specified date or the specified amount. The employee can refuse to sign the salary slip, or will not get the salary slip, which acts as proof for him, that his salary is still due. More uses of the salary slip? From the point of view of a third party, is it the IRS, the employment exchanges or a new company that wishes to employ the said employee, the salary slip acts as a proof of employment.