Act now: the law around payslips is changing

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For your employees, payday isn’t just another day. And for you? It means making sure your staff have their payslips either before or on the day they get paid. It doesn’t matter how your staff get their payslips: they can be hand-delivered, sent by post or by email. Maybe steer clear of carrier pigeons. You should make sure that your employees’ payslips show: • Their earnings before and after any deductions. • The amount of any deductions that change each time they’re paid, for example, tax and National Insurance. • Any benefits they’ve agreed to have taken out of their salary, including season-ticket loans or bike loans.

April 2019: what’s changing?

Currently, only employees are entitled to receive a payslip. From April, if you use workers—including agency staff, bank staff, casual staff or zero-hours staff—you’ll also need to send them an itemised payslip on or before every payday From 6th April 2019, you’ll also need to state how many hours you’re paying workers for on their payslips if their pay varies based on the number of hours they work.

Why’s it changing?

It’s all about transparency. Without a payslip, it can be difficult for a casual worker or agency worker to see what deductions have been made from their pay. And if their pay doesn’t tally up, armed with their payslip, they can challenge you more easily.

Paper-based or paperless?

Creating payslips for all your workers = a lot more paper. And potentially a larger margin for error. There’s a higher cost with paper payslips. It’s the printing and postage that add the pounds. But what about an electronic payslip? Pennies. You even get to save some trees as well. Payroll software can do the hard work for you by sending out your employees’ payslips directly by email, on time, every month. Are you thinking of making the switch from paper to paperless payslips? Call the payroll advice team on 0844 892 2772, and choose option 3

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