Free report template · Word

Payroll Exception Report

A payroll exception report lists every case in the monthly payroll that breaks a normal rule, such as negative net pay, unusually large variance, missing PAN or bank details, duplicate bank accounts or pay above a threshold, along with the action taken. It lets reviewers focus on risk before salaries are released.

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[Company Logo][Company Name]

PAYROLL EXCEPTION REPORT

Company:: [Company Name]
Payroll Month:: [Month YYYY]
Report Date:: [Date]
Prepared By:: [HR Name]

1. Exception Rules Applied

Net pay change of more than [Percentage]% versus last month
Negative or zero net pay
Missing or invalid PAN, UAN or bank details
Same bank account linked to more than one employee
Overtime hours above [Number] in the month
Gross pay above [Amount] or one-time payment above [Amount]
Salary paid to an employee whose last working day has passed

2. Exceptions Identified

Sr.	Emp. ID	Employee Name	Exception	Severity	Root Cause	Action Taken	Owner	Status
1	[Employee ID]	[Employee Name]	[Exception]	[High / Medium / Low]	[Root Cause]	[Action]	[Owner]	[Open / Closed]
2	[Employee ID]	[Employee Name]	[Exception]	[High / Medium / Low]	[Root Cause]	[Action]	[Owner]	[Open / Closed]
3	[Employee ID]	[Employee Name]	[Exception]	[High / Medium / Low]	[Root Cause]	[Action]	[Owner]	[Open / Closed]
4	[Employee ID]	[Employee Name]	[Exception]	[High / Medium / Low]	[Root Cause]	[Action]	[Owner]	[Open / Closed]

3. Summary

Severity	Total	Closed	Open
High	[Number]	[Number]	[Number]
Medium	[Number]	[Number]	[Number]
Low	[Number]	[Number]	[Number]

4. Reviewer Comments

[Comments – e.g. All high-severity items resolved. Two medium items relating to pending PAN carried forward with TDS at the higher applicable rate until PAN is received.]

Prepared by
[HR Name]
Date: [Date]

Reviewed by
[Payroll Manager]
Date: [Date]

Noted by
[Finance Head Name]
Date: [Date]

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What this template includes

Exception rules and thresholds
Employee-wise list of exceptions
Severity rating
Root cause and action taken
Owner and resolution status
Summary of open versus closed items

When to use it

As part of payroll review before approval
When an outsourced vendor submits a draft payroll
During internal audit of payroll controls
After a payroll system migration to catch data issues

How to customise this template

1Define your variance threshold (e.g. net pay change above [Percentage]%)
2Add rules specific to your business, such as overtime above a cap
3Assign owners for each exception type
4Run the report from your payroll system and paste results

HR tips

Treat duplicate bank accounts as high severity; they can signal fraud
Resolve all high-severity items before approval
Track repeat exceptions to fix the process
Keep the report with the payroll approval sheet

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Frequently asked questions

What is a payroll exception?+

A payroll exception is any entry that falls outside expected rules, such as negative pay, a large unexplained change, or missing statutory details.

Why run a payroll exception report?+

It helps catch errors and potential fraud before payment, so reviewers do not have to check every line manually.

Who resolves payroll exceptions?+

The payroll team investigates, HR fixes data issues, and finance approves any manual overrides.

All 50 salary, payroll & compensation →

[Company Logo][Company Name]
PAYROLL CHANGE REQUEST FORM
Request No.:
[Reference Number]
Date of Request:
[Date]
Payroll Cut-off:
[DD] of every month
Section A – Employee Details
Employee Name
Employee ID
Designation
Department
Work Location
UAN
PAN (last 4 characters)
Section B – Type of Change
- Bank account
- Salary / CTC revision
- Designation / grade
- Department / cost centre
- Work location / state (professional tax impact)
- Tax regime (old / new)
- Recurring deduction add / stop
- Name / personal details
- Other (specify)
Section C – Change Details
Form · Word
Payroll Change Request Form
Download .docx

Employee Name
Employee ID
Designation
Department
Work Location
UAN
PAN (last 4 characters)

[Company Logo][Company Name]

MONTHLY PAYROLL INPUT SHEET

Company / Unit:: [Company Name] / [Unit]
Payroll Month:: [Month YYYY]
Attendance Period:: [DD/MM/YYYY] to [DD/MM/YYYY]
Input Cut-off:: [DD/MM/YYYY]
Prepared By:: [HR Name]

1. Attendance, LOP and Overtime

Emp. ID	Employee Name	Paid Days	LOP Days	OT Hours	Night Shift Days	Remarks
[Employee ID]	[Employee Name]	[Number]	[Number]	[Number]	[Number]	[Remarks]
[Employee ID]	[Employee Name]	[Number]	[Number]	[Number]	[Number]	[Remarks]
[Employee ID]	[Employee Name]	[Number]	[Number]	[Number]	[Number]	[Remarks]

2. New Joiners

Emp. ID	Employee Name	Date of Joining	Annual CTC (₹)	UAN / New	Bank Details Received
[Employee ID]	[Employee Name]	[DD/MM/YYYY]	[Amount]	[UAN]	Yes / No
[Employee ID]	[Employee Name]	[DD/MM/YYYY]	[Amount]	[UAN]	Yes / No

3. Exits

Template · Word

Payroll Input Sheet

Download .docx

[Company Logo][Company Name]
MONTHLY PAYROLL PROCESSING CHECKLIST
Company:
[Company Name]
Payroll Month:
[Month YYYY]
Salary Pay Date:
[DD/MM/YYYY]
Payroll Owner:
[HR Name]
Reviewer:
[Payroll Manager]
Phase 1 – Pre-Payroll Inputs (Owner: HR Operations)
- Attendance, leave and LOP finalised and locked
- Overtime and shift allowance data approved by department heads
- New joiner details, bank accounts and UAN collected
- Exit list with last working days received
- Salary revisions, promotions and arrears approvals received
- Incentive, bonus and reimbursement approvals received
- Advance recovery and other deduction consents on file
- Investment declarations / tax regime choices updated
Phase 2 – Calculation and Review (Owner: Payroll)
- Payroll master updated for all changes
- Gross pay computed with LOP pro-rating
- Employee and employer PF calculated on PF wages
- ESI computed for eligible employees (gross up to ₹21,000/month)
- Professional tax applied as per state slabs
- Labour Welfare Fund applied where applicable
- TDS projected and computed for the month
- Variance report against last month reviewed and explained
- Headcount reconciled (opening + joiners − exits)
- Negative or zero net pay cases investigated
Phase 3 – Approval and Payment (Owner: Finance)
Checklist · Word
Payroll Processing Checklist
Download .docx

[Company Logo][Company Name]

PAYROLL APPROVAL SHEET

Company:: [Company Name]
Payroll Month:: [Month YYYY]
Proposed Pay Date:: [DD/MM/YYYY]
Prepared By:: [HR Name]

A. Department-wise Summary (₹)

Department	Headcount	Gross Pay	Employee Deductions	Net Pay	Employer PF/ESI	Total Cost
[Department]	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]
[Department]	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]
[Department]	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]
[Department]	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]
Total	[Number]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]

B. Month-on-Month Comparison

Item	Previous Month	Current Month	Variance	Explanation
Headcount	[Number]	[Number]	[Number]	[Joiners / exits]
Gross Pay (₹)	[Amount]	[Amount]	[Amount]	[Explanation]
One-time Payments (₹)	[Amount]	[Amount]	[Amount]	[Arrears / incentives]
Net Pay (₹)	[Amount]	[Amount]	[Amount]	[Explanation]

C. Statutory Payables (₹)

Template · Word

Payroll Approval Sheet

Download .docx

[Company Logo][Company Name]
PAYROLL RECONCILIATION CHECKLIST
Company:
[Company Name]
Period:
[Month YYYY] / [Quarter]
Prepared By:
[Payroll Executive]
Reviewed By:
[Finance Head Name]
1. Payroll Register to Bank
- Total net pay in register matches total bank debit
- Employee-wise credits match register (no missing or extra names)
- Failed or returned transfers identified and re-paid
- Off-cycle payments (F&F, advances) included
- Held salaries listed and carried forward
2. Payroll Register to General Ledger
- Gross salary expense matches GL salary accounts
- PF, ESI, PT and TDS payable balances match register deductions
- Employer contribution expense posted correctly
- Accruals for unpaid salary / bonus recorded
- Cost-centre allocation matches department totals
3. Statutory Filings
Checklist · Word
Payroll Reconciliation Checklist
Download .docx

[Company Logo][Company Name]

SALARY STRUCTURE – GRADE-WISE

Company:: [Company Name]
Effective From:: [Date]
Version:: [Version Number]
Prepared By:: [HR Name]

1. Component Rules

Basic Salary: [Percentage]% of CTC
HRA: [Percentage]% of Basic (metro / non-metro as per policy)
Special Allowance: balancing figure after all fixed components
Employer PF: 12% of Basic + DA, subject to wage ceiling rules as per policy
Employer ESI: 3.25% of gross for employees earning up to ₹21,000/month
Gratuity provision: as per company policy, payable after 5 years' continuous service

2. Monthly Structure by Grade (₹)

Component	Grade [G1]	Grade [G2]	Grade [G3]	Grade [G4]
Basic Salary	[Amount]	[Amount]	[Amount]	[Amount]
House Rent Allowance (HRA)	[Amount]	[Amount]	[Amount]	[Amount]
Conveyance / Transport Allowance	[Amount]	[Amount]	[Amount]	[Amount]
Special Allowance	[Amount]	[Amount]	[Amount]	[Amount]
Gross Salary (A)	[Amount]	[Amount]	[Amount]	[Amount]
Employer PF	[Amount]	[Amount]	[Amount]	[Amount]
Employer ESI (if applicable)	[Amount]	[Amount]	N/A	N/A
Gratuity Provision	[Amount]	[Amount]	[Amount]	[Amount]
Employer Contributions (B)	[Amount]	[Amount]	[Amount]	[Amount]
Monthly CTC (A + B)	[Amount]	[Amount]	[Amount]	[Amount]
Annual CTC	[Amount]	[Amount]	[Amount]	[Amount]

3. Estimated Deductions and In-hand (₹ per month)

Template · Word

Salary Structure Format

Download .docx

[Company Logo][Company Name]

ANNEXURE – CTC BREAKUP

Employee / Candidate Name:: [Employee Name]
Designation:: [Designation]
Department:: [Department]
Work Location:: [Work Location]
Annual CTC:: [CTC]
Effective Date:: [Date of Joining]

A. Fixed Earnings

Component	Monthly (₹)	Annual (₹)
Basic Salary	[Basic Salary]	[Amount]
House Rent Allowance	[HRA]	[Amount]
Leave Travel Allowance	[Amount]	[Amount]
Special Allowance	[Amount]	[Amount]
Total Gross Salary (A)	[Amount]	[Amount]

B. Employer Contributions

Component	Monthly (₹)	Annual (₹)
Employer Provident Fund (12% of Basic)	[Amount]	[Amount]
Employer ESI (3.25%, if applicable)	[Amount]	[Amount]
Gratuity Provision	[Amount]	[Amount]
Total Employer Contributions (B)	[Amount]	[Amount]

C. Variable Pay (Target)

Template · Word

CTC Breakup Format

Download .docx

[Company Logo][Company Name]

ANNUAL COST TO COMPANY STATEMENT

Ref. No.:: [Reference Number]
Date:: [Date]
Financial Year:: [FY YYYY-YY]
Employee Name:: [Employee Name]
Employee ID:: [Employee ID]
Designation / Department:: [Designation] / [Department]
Date of Joining:: [Date of Joining]
UAN:: [UAN]

Dear [Employee Name],
This statement summarises the total amount [Company Name] invested in your employment during the financial year [FY YYYY-YY]. It includes cash salary as well as contributions and benefits that do not appear in your monthly in-hand pay.

Part A – Salary Paid

Component	Approved Annual (₹)	Actual Paid (₹)
Basic Salary	[Amount]	[Amount]
House Rent Allowance	[Amount]	[Amount]
Special Allowance	[Amount]	[Amount]
Other Allowances	[Amount]	[Amount]
Bonus / Incentives Paid	[Amount]	[Amount]
Arrears Paid	[Amount]	[Amount]
Total Salary Paid (A)	[Amount]	[Amount]

Part B – Employer Statutory Contributions

Component	Approved Annual (₹)	Actual (₹)
Employer PF (EPF + EPS)	[Amount]	[Amount]
Employer ESI (if covered)	[Amount]	[Amount]
Gratuity Provision	[Amount]	[Amount]
Labour Welfare Fund (employer share, if applicable)	[Amount]	[Amount]
Total Contributions (B)	[Amount]	[Amount]

Report · Word

Cost to Company Statement

Download .docx

Payroll Exception Report

Preview of the report

1. Exception Rules Applied

2. Exceptions Identified

3. Summary

4. Reviewer Comments

What this template includes

When to use it

How to customise this template

HR tips

Hire top talent from BetterJobs

Frequently asked questions

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