A salary chart is an essential tool for any HR department. It helps them keep their employee turnover rate low by keeping a specific range of salaries within the market. Excel can be used to create a salary chart in a number of ways. One of the best features of this software is that it can turn data into charts and diagrams. This makes payroll calculations more understandable and easier to digest.
To start creating a salary chart in excel, first you need to know the basic pay amounts for all your employees. This information can be found in your structure database and can be retrieved from the Set Up Employee Data tab.
The next step is to calculate the gross and net salary of each employee. This includes basic salary, allowances, and deductions.
You can find the basic salary amount by referring to cells B5:B14 in your structure database and enter this data into cell C5. Then you need to put the percentages for allowances and deductions on the right-hand side of these columns.
This will make it easy to calculate the gross and net salary for any employee. You can also add or subtract any bonuses, overtime or dearness allowances as per the employee’s increment status.
After you have the basic salary and the percentages of allowances and deductions, you can create a gross salary sheet in excel. This calculation is done by dividing the gross salary by the employee’s total number of hours worked for that pay period.
Once you have the gross salary, you can then use the following formula to create a net salary: =Gross Salary * (Pay/Hour, Total Worked Hours). This will give you the total net payable amount for your employees.
Another way to calculate a net salary is to divide the gross salary by the employee’s total hours worked for that pay period and add that to the basic salary. This method is often used by employers to calculate the total net payable amount for their employees.
If you have a fixed salary for an employee, it is advisable to enter the correct number of straight-time hours in column E and overtime hours in column G of your monthly payroll tabs. This is the only way to ensure that your employees receive accurate paychecks.
The spreadsheet also allows you to insert a column & row matrix which highlights incorrect column or row counts. This is a great tool to keep on hand when preparing your next payroll.
How to Create a Salary Chart in Excel
The process of creating a salary chart is simple and easy. All you need is to fill in a few parameters and the rest will be taken care of by the template. It will automatically calculate the minimum, middle and maximum salaries of all the employees based on their salary grade.
You can also customize the salary range template to fit your organization’s needs. You can choose to generate a salary range in absolute dollars, in percentages, or in an overlapped model that divides the salary grade into two different groups and sets a midpoint for each group.