payslip legal requirements

Legal Requirements for Payslips in the UK

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In every job you’ve ever had that has been paid, you’ve probably received a payslip. But are payslips a legal requirement? What needs to be on one? And what are the requirements for employers?

What is a payslip?

A payslip is a piece of paper or an electronic document that shows how much money an employee has earned from their job. It also includes details about any taxes or deductions that have been taken out of their pay, such as national insurance, student loans or pensions.

Are payslips a legal requirement?

Employers are required to provide their employees with a payslip on or before every payday. Payslips are a legal requirement in the UK based on the current government legislation.

Why are payslips important?

Payslips are important for a few different reasons, especially to an employee.

  1. Employees can check that their pay, tax and deductions are all correct.
  2. They might be required for certain things such as tax returns, or benefits claims.
  3. They can be used as proof of income when applying for loans, mortgages or housing.
  4. A payslip provides proof of deductions such as student loans so you can prove payment has been made.
  5. Employees can also use a payslip to prove their identity in some situations.

 

What needs to be on a payslip?

There are a few things which a payslip must show by law. They are:

  • Total gross pay
  • Net pay
  • Statutory deduction amounts
  • Contractual deduction amounts
  • The pay date

What other things might be on a payslip?

Some companies might choose to include additional information on payslips, none of these things are requirements but are not uncommon to be included:

  • National Insurance Number
  • National Insurance Category
  • Tax Code
  • Pay rate
  • A breakdown of the gross pay in any form
  • Employee number
  • Address
  • Gross year to date figures
  • Name of the Employer
  • Tax reference/period number
  • Bank details
  • Date of birth

 

How should a payslip be provided?

In the UK we have rules on how a payslip can be provided, however, employers can choose from a couple of different options depending on their needs:

  • A printed paper copy that is sealed before delivery.
  • An emailed copy.
  • A secure portal login that is password protected and only accessible to each individual employee.

 

Use a payroll software to produce your payslips

As an employer, making sure that your employees receive correct payslips on time is vital—employees can take you to a tribunal if they don’t receive payslips. Choosing a payroll software like Cintra Pay allows you to process your employees’ payslips as PDF’s and provide them with your payroll cycle.

Find out more about how Cintra Pay can help you today by getting in touch.

 

 

Lucy Pietrafesa
Lucy Pietrafesa
Lucy is our Digital Marketing Executive. Outside of her passion for all things digital and social at Cintra, Lucy has a love for fashion and bringing plenty of colour into life through her bright style!