Back to all blogs
PayslipsBusiness TipsPayroll

How to Use a Payslip Generator for Your Small Business

Published on October 20, 2025

Hiring your first employee is a huge step! But with it comes new responsibilities, chief among them: payroll. A key part of payroll is providing a clear, accurate, and legally compliant payslip. This can seem complicated, but a good payslip generator makes it simple.

Why You Can't Just "Send Money"

You might be tempted to just e-transfer your employee their pay. **Do not do this.** A payslip is a legal document. It serves as:

  • A record for your own business accounting.
  • A legal record for the employee for tax purposes.
  • Proof of income for the employee (e.g., for renting an apartment or getting a loan).

Providing a payslip is a legal requirement in most countries, including Pakistan, the US, and the UK.

What You Need *Before* You Start

To use a tool like the SmoothLedger Payslip Generator, you'll need a few key pieces of information. Gather these first:

  • Your Company Details: Your legal business name and address.
  • Employee Details: Full legal name, Employee ID (if you use one), and their position or title.
  • Pay Period: The start and end date for which you are paying them (e.g., Nov 1 - Nov 15).
  • Pay Date: The date the money will be transferred.
  • Gross Earnings: A full breakdown of what they earned (Base Salary, Bonus, Overtime, etc.).
  • Deductions: A full breakdown of what you are subtracting (Income Tax, Insurance, Pension contributions, etc.).

Using the Generator: Step-by-Step

The beauty of a generator is that it handles the layout and calculations for you.

  1. Fill in Company & Employee Info: Enter your company details and the employee's details in the provided fields.
  2. Add Earnings: Use the "Add Earning" button to list every source of income. Be clear: "Base Salary" and "Sales Bonus" are better than "Payment."
  3. Add Deductions: Use the "Add Deduction" button to list every item being subtracted.
  4. Review the Totals: The tool will automatically calculate Gross Earnings, Total Deductions, and Net Pay. Double-check these against your own records.
  5. Download the PDF: Click "Download PDF." You now have a professional, compliant document you can email to your employee and save for your records.
Pro Tip: Use the "Save Employee" feature to save their details in your browser, so you only have to type them in once.