Understanding your payslip
Post Author:
Angie Harvey
Date Posted:
June 20, 2017
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YOUR PAYSLIP EXPLAINED
Your payslip contains important information, including your National Insurance (NI) number, tax code, employee payroll number as well as your gross and net pay. All employees including casual staff are entitled to a payslip at or before the time they are paid. The format of your payslip can be on paper or electronic (online).
Information that MUST be on your payslip:
Gross pay – your total pay before any deductions.
Variable deductions – such as tax and national insurance contributions.
Fixed deductions – for example loan repayments, union subscription or pension contributions.
Your net pay – this is the amount you take home.
Additional information that might be on your payslip:
Personal information – Your name and sometimes your home address will be on your payslip, as well as your payroll number.
NI Number – You have an NI number to make sure your National Insurance and tax are recorded against your name only. You have the same NI number for life, even if your name changes.
Tax code – The numbers in your tax code tell your employer how much tax free income you should receive in that tax year. This will be based on your personal allowance, which is the amount of income you can have before you pay tax. This is worked out by HM Revenue & Customs.
Pay rate (hourly/monthly/annual) – the amount of basic wage paid per unit of time.
Details of additional payments – for example overtime, commission or bonuses (if not included in your gross pay).
Keeping your payslip safe
You should keep your payslip in a safe place as it contains lots of your personal information and is a record of your personal earnings and deductions. Your payslip can also be used as evidence of your earnings, some mortgage lenders and other financial organisations often request to see your payslips.
At Johnston Smillie we can tailor your employee’s payslip to suit your business needs, we offer online electronic payslips as well as secure paper payslips. Please contact us and you will be put in contact with one of our payroll team who will be happy to discuss this further with you.
