The Employments Rights Act sets out the requirements of producing payslips for employees.
The requirements are that you need to supply an employee with a payslip on or before their pay day. This requirement covers both full time and part time employees.
The minimum information that a payslip must contain is;
- Gross Pay
- Net Pay
- Amounts and types of all fixed and variable deductions
- Method of payment
- Deductions for stakeholder pensions
Whilst not a requirement under the Employment Rights Acts, most employees payslips also show the following;
- Time period covered by the payment
- Date of payment
- Basic Pay
- Overtime
- Bonus or Commissions
- Sick Pay ( including Statutory Sick Pay)
- Holiday Pay
It is also wise to print an employee’s National Insurance (NI) number and PAYE Tax code on each payslip to reduce future queries.
If in doubt, always ask a qualified accountant such as Transform Accounting who will often be able to perform the payroll function and production of payslips on your behalf.
Loughton Accountant – Transform Accounting – Essex Accountants
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