From 6 April 2019, new legislation will alter how UK employers provide payslips to their workforce.
Under this new regulation, employers will have to deliver itemised payslips to all workers on their payroll, not just those classified as ‘employees’. Current legislation does not require payslips to be issued to contractors, freelancers, and other types of ‘non-employee’ workers, but this situation will change in April of this year, with obvious implications for payroll departments.
The new legislation aims to ensure more workers are paid fairly and accurately in industries across the UK. Similarly, those workers will be able to react faster when they are paid incorrectly and become more aware of their rights.
Under current provisions, payslips should include details of:
- The employee’s gross salary/wages
- Deductions (e.g. tax and NI)
- Net salary/wage amount received
Under the new legislation, payslips must also include information about the number of paid hours an employee has worked, but only in situations where “the amount of wages or salary varies by reference to time worked”. In these variable contexts, payslips should show hours worked either as:
- A single, combined amount; or
- An itemised list of hours worked for different rates of pay
Including this information on payslips means that variable-time employees will not only find it easier to reconcile their pay with their hours worked but will also be able to establish whether they are being paid the national minimum wage by their employers.
Adjusting your payroll
With the April deadline fast approaching, employers should act now to adjust their payroll setups to facilitate the provision of payslips to all workers. As an employer, this means reviewing the infrastructure of your payroll system and ensuring:
- There is integration between other parts of your organisation (such as HR)
- That the payroll is not only adjusted, but also able to collect the information required by the new regulations and the payslip format is able to present it
- Payslips are provided to employees in printed, written or electronic format, delivered on or before the employee’s payday
How we can help
At PM+M, our payroll team will make sure your employees are being paid for the time they work, and your payroll and payslip process is meeting the new requirements, so that you avoid fines and maintain best practice for your employees.
For more information about our payroll services, please contact Julie Mason using the details below.