Aug 2021


Payslips explained: Top tips to help your employees

As an employer, it’s easy to assume that all employees understand the information on their payslips. However, research carried out shows this is not the case. Although some employees will examine their payslip each pay period, checking the tax and other deductions, others will never glance at theirs, assuming it is correct.

Understanding a payslip can be confusing and it’s worth taking the time to explain to new and existing employees what everything means. By breaking down each piece of information displayed on their payslip, you will find it easier to resolve unexpected payroll issues that arise and to communicate the full benefits of their employment package. Importantly, if you have employees who work unpredictable shifts and periods of overtime, it can help to encourage these employees to consistently share the most up-to-date information in order for payroll to be processed more accurately.

To help your employees understand their payslips better, check out the following tips:

1. Explain the basics:

Payslips contain a lot of information so it’s useful to break down what the employee will see. This includes the gross pay, net pay, and their personal information such as their payroll number, tax code, and their National Insurance (NI) number.

2. Be clear on how their pay is calculated:

Understanding how a salary is calculated for each month can cause confusion for employees, especially if they are paid on a monthly or a 4-weekly schedule. Moreover, employees being paid different rates depending on their hours worked will need to understand the differences.

Any deductions, both variable and fixed, should be explained. This includes those required by law, for example National Insurance, income tax, or student loan repayments, as well as those agreed to by your employee. Pension contributions will also be shown on the employee’s payslip, and this can be a good opportunity to explain its benefits as well as to highlight the employer’s contribution to their pension fund.

3. Choose the right time:

Onboarding new employees is the ideal time to explain the information a payslip contains. While onboarding, the employee will likely be partaking in induction training, filling out forms, and getting ready for their new role. This is a good opportunity to go through their payslip as well as emphasise any benefits included on it, such as a bonus, commission or other rewards.

4. Use your payroll software to customise payslips:

If you use payroll software, such as BrightPay Payroll, you will be able to customise your payslips. This can help make the payslips more easily understood. For example, use a custom description for specific payment periods such as daily payments, piece payments, as well as additions or deductions.

5. Make payslips easily accessible:

Providing a digital payslip is convenient for both you and your employees. Not only does it save you money and time printing out payslips (and improves your sustainability efforts), but it also allows employees to access their payslips whenever they want. Using an employee app, such as BrightPay Connect, employees can access their payslip on an online browser or on an app on their smartphone or tablet. Additionally, employees have access to their payslip archive, a record of all their payslips which date back to when you first started using BrightPay Payroll. The payslip archive ensures they never lose their payslip and allows employees to easily access them when applying for mortgages or other financial banking options.

Find out more:

If you’re interested in learning more about BrightPay Connect and the added benefits of using an employee app, including its HR functionality, book a free BrightPay Connect demo today.



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Posted byÁine CourtneyinEmployee Self ServicePayroll Software