Pay slip

What is a pay slip?

Definition of a payslip

A payslip, also known as a payroll statement, is an official document given by an employer to an employee to detail the compensation paid during a pay period. It outlines the gross salary, mandatory deductions (taxes, social contributions, etc.), and the net salary received, as well as other information related to the employment contract.

The payslip serves as proof of income and plays a central role in personnel administrative management. It is essential for processes related to bank loans, rental agreements, or retirement.

What information is included on a payslip?

A payslip generally includes the following elements:

  • Identification of the employer and the employee
  • The applicable work period
  • Gross salary and any applicable bonuses
  • Deductions (taxes, employment insurance, QPP, etc.)
  • The net salary to be paid (see definition of net salary)
  • Hours worked, paid leave, and overtime
  • The hourly rate or monthly salary depending on the type of compensation (see salary vs hourly rate)

What is the purpose of the payslip for SMEs?

In small and medium-sized enterprises, especially in the construction sector, a well-prepared payslip helps:

  • Ensure compliance with legal obligations
  • Accurately calculate and pay wages
  • Track working hours using tools such as digital timesheets
  • Promote transparency and trust with employees

Digital solutions such as time tracking apps help automate certain steps and reduce errors or omissions.

Frequently asked questions about payslips

What is the difference between gross salary and net salary?

Gross salary is the total amount before deductions, while net salary is what the employee actually receives after mandatory withholdings.

Is a payslip mandatory?

Yes. In most jurisdictions, such as Quebec or France, employers are required to provide a payslip to every employee for each pay cycle, even in the case of hourly wage payment.

Can payslips be generated automatically?

Yes. Several payroll software and work schedule management tools allow payslips to be generated from timesheets and employee data while complying with legal requirements.

How important is the timesheet in creating a payslip?

The timesheet records the hours worked and serves as the calculation basis for generating an accurate payslip, especially for hourly paid employees.

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