Payslips Employers should be aware of the legal requirements concerning payslips – here is the Leach Briely guide to the essentials…Most employees receive payslips and take them for granted, but what are the legal requirements?All workers, including those working part-time and temporarily, are entitled to receive a written payslip on or before their pay day. A worker is anyone who personally performs work or services to an organisation, under an employment contract or any other type of contract. The Employment Rights Act (ERA) sets out the required contents of a payslip:Gross payAmounts and purpose of variable and fixed deductionsNet payMethod of payment (where different amounts are paid in different ways)In practice, most employers give much more information than the basic statutory requirements. For instance, it is obviously good practice to analyse gross pay to show:Basic payNumber of hours worked and rate paid (if worker works variable hours or overtime)Bonus, commission, etc.Special allowancesSick pay (including Statutory Sick Pay)Parental pay (including Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay)Holiday payEmployer's and employee's pension contributionsIt is also usual to show the period covered by the payment, and the date of payment.You can significantly reduce queries from employees by giving basic details such as:National insurance numberPAYE tax codeTax Office name and referenceIf you are an employer we can provide support and advice – Leach Briely.
