Generate Payslip
Learn how to generate professional payslips for your employees with automatic PAYE tax calculation compliant with Nigerian tax regulations.
Accessing Payslip Generation
- Navigate to
https://payslip.digit-tally.io - Click Generate Payslip or + Create Payslip
- Payslip form opens
[SCREENSHOT: Generate payslip button]
Step 1: Select Employee
Choose employee or add new one.
| Field | Description | Required |
|---|---|---|
| Employee | Select from employee list | Yes |
| Pay Period | Month and year (e.g., January 2026) | Yes |
| Payment Date | When salary will be paid | Yes |
Add New Employee: If employee not in list:
- Click + Add Employee
- Enter employee details (name, TIN, bank details)
- Set salary structure
- Save and continue
[SCREENSHOT: Employee selection]
Step 2: Salary Structure
Configure employee's earnings.
Basic Salary
| Field | Description | Example |
|---|---|---|
| Basic Salary | Monthly base salary | NGN 250,000 |
Allowances
Common Allowances:
- Housing Allowance
- Transport Allowance
- Meal Allowance
- Utility Allowance
- Medical Allowance
- Entertainment Allowance
- Leave Allowance
Example:
Basic Salary: NGN 250,000
Housing Allowance: NGN 100,000
Transport Allowance: NGN 50,000
Meal Allowance: NGN 20,000
----------
Gross Salary: NGN 420,000
[SCREENSHOT: Salary and allowances section]
One-Time Additions
For This Month Only:
- Bonus
- Commission
- Overtime pay
- Arrears
- Reimbursements
Example:
Performance Bonus: NGN 50,000
Overtime (10 hours): NGN 15,000
[SCREENSHOT: One-time additions]
Step 3: Deductions
Statutory Deductions
Automatically Calculated:
-
PAYE (Tax)
- Uses Nigerian PAYE tax table
- Includes Consolidated Relief Allowance (CRA)
- Calculated on annual basis, deducted monthly
-
Pension (8%)
- Employee contribution: 8% of gross
- Mandatory for employees earning NGN 3,000+ monthly
- Example: 8% of NGN 420,000 = NGN 33,600
-
NHF (2.5%)
- National Housing Fund
- Optional: 2.5% of basic salary
- Example: 2.5% of NGN 250,000 = NGN 6,250
[SCREENSHOT: Statutory deductions with calculations]
PAYE Calculation Example
For Gross Salary of NGN 420,000:
Annual Gross: NGN 420,000 × 12 = NGN 5,040,000
Less: CRA (Higher of 1% of gross or NGN 200,000)
CRA: 1% of NGN 5,040,000 = NGN 50,400
CRA: Use NGN 200,000 (higher)
Less: Pension (8%): NGN 420,000 × 8% × 12 = NGN 403,200
Less: NHF (2.5%): NGN 250,000 × 2.5% × 12 = NGN 75,000
Taxable Income:
NGN 5,040,000 - NGN 200,000 - NGN 403,200 - NGN 75,000 = NGN 4,361,800
PAYE Calculation:
First NGN 300,000 @ 7% = NGN 21,000
Next NGN 300,000 @ 11% = NGN 33,000
Next NGN 500,000 @ 15% = NGN 75,000
Next NGN 500,000 @ 19% = NGN 95,000
Next NGN 1,600,000 @ 21% = NGN 336,000
Next NGN 1,161,800 @ 24% = NGN 278,832
---------
Annual PAYE: NGN 838,832
Monthly PAYE: NGN 838,832 ÷ 12 = NGN 69,903
[SCREENSHOT: PAYE calculation breakdown]
Other Deductions
Additional Deductions:
- Loan repayment
- Staff purchase
- Insurance
- Union dues
- Cooperative contributions
- Advance salary deduction
Example:
Staff Loan Repayment: NGN 20,000
Cooperative: NGN 5,000
[SCREENSHOT: Other deductions section]
Step 4: Net Pay Calculation
Payslip Summary:
EARNINGS:
Basic Salary: NGN 250,000
Housing Allowance: NGN 100,000
Transport Allowance: NGN 50,000
Meal Allowance: NGN 20,000
Performance Bonus: NGN 50,000
----------
Gross Pay: NGN 470,000
DEDUCTIONS:
PAYE Tax: NGN 69,903
Pension (8%): NGN 33,600
NHF (2.5%): NGN 6,250
Loan Repayment: NGN 20,000
Cooperative: NGN 5,000
----------
Total Deductions: NGN 134,753
NET PAY: NGN 335,247
[SCREENSHOT: Net pay calculation]
Step 5: Payment Details
Specify payment information.
| Field | Description |
|---|---|
| Payment Method | Bank Transfer, Cash, Cheque |
| Bank Name | Employee's bank |
| Account Number | Employee's account number |
| Account Name | Employee's account name |
[SCREENSHOT: Payment details section]
Step 6: Generate and Send
Options:
-
Generate and Send
- Creates payslip
- Emails to employee automatically
- PDF attached
-
Generate Only
- Creates payslip
- Doesn't send email
- Can download PDF
-
Save as Draft
- Saves for later
- Can edit before generating
[SCREENSHOT: Generate payslip buttons]
Payslip Email Template
Subject: Your Payslip for [Month Year]
Dear [Employee Name],
Please find attached your payslip for [Month Year].
Payment Details:
Gross Pay: NGN 470,000
Deductions: NGN 134,753
Net Pay: NGN 335,247
Payment will be made on [Payment Date] to your account ending [Last 4 digits].
If you have any questions, please contact HR.
Best regards,
[Company Name]
[SCREENSHOT: Payslip email]
Payslip Document
Payslip includes:
- Company logo and details
- Employee information
- Pay period
- Earnings breakdown
- Deductions breakdown
- Net pay
- Payment method
- Year-to-date totals
- Authorized signature
[SCREENSHOT: Sample payslip PDF]
Bulk Payslip Generation
Generate payslips for all employees at once.
Bulk Generation Process
- Click Bulk Generate
- Select pay period (e.g., January 2026)
- Select employees (or select all)
- Review salary details
- Adjust if needed
- Click Generate All
- Payslips created for all selected employees
- Option to send all via email
Benefits:
- Save time for monthly payroll
- Consistent pay date for all
- Generate reports for all employees
- Bulk email delivery
[SCREENSHOT: Bulk payslip generation]
Payroll Reports
Monthly Payroll Summary
Report Shows:
- All employees
- Gross pay per employee
- Total deductions per employee
- Net pay per employee
- Total payroll cost
- Total PAYE to remit
- Total pension to remit
Example:
MONTHLY PAYROLL SUMMARY - JANUARY 2026
Employee Gross PAYE Pension Net
-------------------------------------------------------
John Adeyemi NGN 470,000 NGN 69,903 NGN 33,600 NGN 335,247
Sarah Okafor NGN 380,000 NGN 52,417 NGN 30,400 NGN 282,183
Mike Eze NGN 320,000 NGN 38,250 NGN 25,600 NGN 246,150
...
-------------------------------------------------------
TOTAL: NGN 5,500,000 NGN 680,450 NGN 440,000 NGN 4,018,300
TO REMIT:
PAYE to FIRS: NGN 680,450 (due by 10th of next month)
Pension to PFA: NGN 440,000 (due by 7 days after payment)
[SCREENSHOT: Payroll summary report]
Bank Transfer Schedule
Report for Bank:
- Employee account details
- Net pay amounts
- Ready for bank upload
- Excel format
[SCREENSHOT: Bank transfer schedule]
PAYE Remittance Report
For Tax Filing:
- Total PAYE deducted
- Per employee breakdown
- Monthly remittance schedule
- Annual reconciliation
Best Practices
Payroll Tips
- Consistent Schedule - Pay on the same date each month
- Verify Details - Check employee bank details before payment
- Calculate Early - Generate payslips 3-5 days before payment
- Review Calculations - Verify PAYE and pension calculations
- Remit Promptly - Pay PAYE to FIRS within 10 days of month-end
- Keep Records - Maintain payslip copies for 6+ years
- Communicate - Inform employees of payslip delivery
Compliance Requirements
Nigerian Payroll Compliance:
- ✅ Deduct PAYE monthly
- ✅ Remit PAYE to FIRS by 10th of next month
- ✅ Register employees with pension PFA
- ✅ Remit pension within 7 days of payment
- ✅ Issue annual tax certificates to employees
- ✅ File annual tax returns
- ✅ Maintain proper payroll records
Troubleshooting
Issue: PAYE Seems Too High
- Solution: Verify gross salary is correct. Check if CRA was applied. Ensure pension and NHF deductions are included. Use the PAYE Calculator in the Accounting app to verify.
Issue: Can't Generate Payslip
- Solution: Ensure employee has complete information (TIN, bank details). Verify salary structure is set. Check pay period is not duplicate.
Issue: Employee Didn't Receive Payslip Email
- Solution: Check email address is correct. Check spam folder. Resend payslip. Download and send manually.
What's Next?
- Payslip App Overview - More payroll features
- Accounting Reports - Track payroll expenses
PAYE Calculator
For standalone PAYE calculations, tax planning, or detailed PAYE management, visit the PAYE Management section in the Accounting app at https://accounting.digit-tally.io/paye.