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How to Use a Free Payroll Template in Excel

A free payroll template Excel file shows how to use a payroll template in Excel. It multiplies hours by rate and subtracts a deduction you already know. The sample pay period is the week of March 2, 2026, for three hourly people at Harbor Goods. Amina Rahman worked 30 hours at $18. Gross is $540. The typed deduction is $65, so net is $475. Chris Doyle worked 35 hours at $17, gross $595, deduction $70. Priya Shah worked 34 hours at $16.50, gross $561, deduction $60.

Those deductions are placeholders so you can see subtraction. They are not a tax table.

Free payroll template Excel

The free payroll template Excel file does not look up tax. You type the deduction your accountant, your payroll service, or your own written rule already gave you. Gross and net are green. If Chris works 36 hours instead of 35, gross becomes $612 and net becomes $542 while the deduction stays $70. The sheet will not change the deduction for you.

Where the hours come from

Check the free Excel timesheet template before you type hours here. The free employee schedule template is the plan, and it can still be wrong. Luis Ortega is on the rota for 30 hours in the sample week and is not in this pay example. Read the disclaimer before you treat a net-pay cell as the amount you must pay. This is a calculator, not a payroll service.

  1. Download the free payroll template.
  2. Type hours, rate, and the deduction you already know.
  3. Read gross and net. Do not type them.
  4. Keep one pay period in each copy.
  • Treating the sample deductions as the tax for your country.
  • Paying the gross figure when you meant to pay net.
  • Using this sheet instead of a payroll service when the law requires one.

Open the free payroll template. The other staff guides are on the blog.

Common questions

Is this payroll template free?

Yes. The free payroll template multiplies hours by rate and subtracts the deduction you type.

Does it know my tax?

No. You type the deduction. The sheet does not look up a tax table.

Where do the hours come from?

From the timesheet, after you have checked them. Do not copy a rota that is still wrong.