Create Payslip
What is Payslip Creation?
Payslip creation in Gangmates allows you to generate detailed payment records for employees based on their salary structure, deductions, allowances, and reimbursements. The system ensures accurate calculations for Net Pay using Nigerian tax compliance standards, which is then used to process payments when initiated. This feature supports both Single and Bulk workflows with enhanced tax calculation features.
Key Features
Single Payslip Creation:
Create customized payslips for individual employees with flexibility for adjustments
Real-time tax calculations with CRA and PAYE compliance
Interactive preview showing tax breakdowns before creation
Bulk Payslip Creation:
Automate payslip generation for multiple employees based on predefined settings
Consistent Nigerian tax compliance across all employees
Automatic eligibility checks (expatriate status, employment duration, etc.)
Enhanced Payroll Calculations:
Nigerian Finance Act 2020 compliance
Consolidated Relief Allowance (CRA) calculated on adjusted gross income
Proper tax annualization with prorated monthly amounts
Automatic minimum tax application (1% rule)
Statutory contribution management (Pension, NHF, NHIS, ITF, NSITF)
Pre-Requisites
User Bank Information:
Ensure all employees have their bank details (account number, bank name) set in their profiles.
Employee Status Information:
For accurate tax calculations, ensure the following are set in employee profiles:
Employment start date (for NSITF eligibility)
Expatriate status (affects NHF exemption)
Payment frequency (monthly, bi-weekly, etc.)
Base salary and allowances
Contributions and Deductions:
Configure mandatory contributions (e.g., pension, tax) and optional deductions in Payroll Settings.
Learn how to configure payroll settings.
Bulk Settings (for Bulk Payslips):
Define eligible user types and payment frequency for bulk payroll processing:
Go to Finance → Payroll → Payroll Settings → Bulk Settings
Select eligible user types and set payment frequency
Company Information:
For ITF compliance, ensure:
Employee count is tracked (for 5+ employee requirement)
Annual turnover is set (for ₦50M+ requirement)
Enhanced Payslip Creation Interface
Real-Time Calculation Display:
When creating a payslip, you'll see live calculations including:
📊 Tax Calculation Breakdown:
┌─────────────────────────────────┐
│ Gross Pay: ₦120,500 │
│ CRA Allowance: ₦21,391 │
│ Taxable Income: ₦80,469 │
│ PAYE Tax: ₦9,070 │
│ Total Deductions: ₦27,710 │
│ Net Pay: ₦92,790 │
└─────────────────────────────────┘Step-by-Step Guide to Creating Payslips
Single Payslip Creation
1. Navigate to the Payslip Section:
Go to Finance → Payroll
Click on the Create Payslip button
2. Select Single Payslip Creation:
In the modal pop-up, choose the Single option
3. Fill Out Payslip Details:
Employee Selection:
Employee Name: Select from dropdown (auto-populates salary data)
Payment Information:
Status:
Leave as Unpaid unless payment made outside system
Select Paid if already processed externally
Pay Period Start: Choose start date
Pay Period End: Choose end date
Salary Components:
Taxable Income (Basic Salary): Auto-populated from employee profile
Reimbursements: Enter if applicable
Other Allowances: Enter additional allowances
Auto-Calculated Fields (Live Updates):
Gross Pay: Automatically calculated
CRA Allowance: Shows tax relief amount
Taxable Income (After CRA): Shows amount subject to tax
PAYE Tax Withheld: Shows income tax deduction
Total Deductions: Summary of all deductions
Net Pay: Final take-home amount
4. Review Tax Calculation:
The system shows a detailed breakdown:
Nigerian tax compliance automatically applied
CRA calculated per Finance Act 2020
All statutory contributions included
Minimum tax rule applied if applicable
5. Create Payslip:
Click Create to finalize
Payslip ready for payment processing through Gangmates pay system
Bulk Payslip Creation
Pre-Requisites:
Bulk Payslip Settings configured for target users
Contribution settings properly configured
Employee eligibility data up to date
1. Navigate to Bulk Payslip Section:
Go to Finance → Payroll
Click Create Payslip button
Select Bulk option
2. Set Bulk Parameters:
Pay Period Start: Enter start date
Pay Period End: Enter end date
3. Run Bulk Job:
Click Run Bulk Job
System processes all configured users with:
Automatic tax calculations for each employee
Individual CRA calculations based on each salary
Proper statutory contributions per employee status
Eligibility checks (expatriate, duration, etc.)
4. Bulk Processing Features:
Consistent compliance across all payslips
Individual tax calculations for each employee
Automatic exemption handling
Error logging for any processing issues
Enhanced Calculation Features
Nigerian Tax Compliance:
✅ Finance Act 2020 compliance
✅ CRA on adjusted gross income
✅ Proper tax annualization
✅ Minimum tax rule (1%)
✅ Automatic exemptions
Statutory Contributions:
✅ Pension: 8% employee, 10% employer
✅ NHF: 2.5% (with expatriate exemption)
✅ NHIS: 5% employee, 10% employer (basic salary)
✅ ITF: 1% annual (employer, with eligibility checks)
✅ NSITF: 1% (first 2 years, with exemptions)
Enhanced Accuracy:
✅ Rounded to 2 decimals (no floating point errors)
✅ Net pay clamping (never negative)
✅ Real-time validation
Payslip Display Enhancements
Enhanced Show View:
Payslips now display organized sections:
💰 EARNINGS
Basic Salary, Allowances, Reimbursements, Gross Pay
📊 TAX CALCULATION
CRA Allowance, Taxable Income (After CRA), PAYE Tax
🏛️ STATUTORY DEDUCTIONS
Pension, NHIS, NHF, Other Deductions
🏢 EMPLOYER CONTRIBUTIONS
Employer Pension, NHIS, ITF, NSITF
📋 SUMMARY
Total Deductions, Net Pay
Enhanced PDF Generation:
Tax calculation breakdown section
CRA explanation and amounts
Professional layout with color coding
Compliance notes for transparency
Key Benefits
Automated Compliance:
Zero manual tax calculations required
Automatic updates for tax rate changes
Built-in exemption handling
Transparency:
Clear tax breakdowns for employees
CRA calculations shown step-by-step
Employer contribution tracking
Accuracy:
Nigerian law compliance guaranteed
Precise calculations with proper rounding
Error prevention with validation
Example Scenarios
Single Payslip with Adjustments:
Employee: Senior Developer
Basic Salary: ₦500,000
Travel Reimbursement: ₦75,000
Performance Bonus: ₦100,000
System calculates:
- Gross Pay: ₦675,000
- CRA: ₦118,125 (21% of adjusted gross)
- Taxable Income: ₦448,125
- PAYE Tax: ₦53,422
- Net Pay: ₦567,578Bulk Processing Results:
Processed: 150 employees
- 145 payslips created successfully
- 3 employees exempt (below ₦70k annually)
- 2 expatriates (NHF exemption applied)
- Average processing time: 2.3 seconds per payslip
- Full compliance achieved across all payslipsTroubleshooting
Common Issues:
Incorrect Net Pay:
✅ Solution: System automatically ensures compliance - verify employee data
Missing Auto-population:
✅ Check: Employee has base_salary set in profile
✅ Verify: User data is complete
Bulk Job Errors:
✅ Review: System logs for specific employee issues
✅ Confirm: All employees have required data
Tax Calculation Questions:
✅ Reference: Enhanced documentation explains all calculations
✅ Contact: HR for specific employee situations
Support
For assistance with payslip creation or tax calculations, contact [email protected].
Include the following for faster resolution:
Employee details and pay period
Specific calculation questions
Screenshots of any errors
Expected vs. actual amounts
Our enhanced payroll system ensures full Nigerian tax compliance while providing complete transparency in all calculations.
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