Expert advice on payroll payslip generation and management

No matter the size of the business, we know that creating payroll can be a stressful task. At Payroll solution services we are dedicated to simplifying this process, offering complete solutions businesses can trust. Studies show that 63% of employees report that payslip errors negatively affected trust in their employers. With such a high percentage, it’s important to have accurate and reliable payroll. That’s where we come in.

At Payroll Solution Services we provide expert outsourced solutions and guidance for the needs of your business, from sole traders and SMEs to large enterprises. Powered by payroll software, our service helps to manage every aspect of payroll, with real time updates from HMRC to auto-enrollment support and scalable reporting. We ensure seamless payroll processes for businesses of all sizes.

What is a payslip?

A payslip is a document that provides employees with a detailed breakdown of their
earnings, including deductions for the pay period. Payslips are important for employees to understand how their pay is calculated, it outlines gross pay and deductions such as national insurance, pension, and bonuses.

Who receives a payslip?

In accordance with UK law, businesses are required to provide payslips to understand how their pay is calculated and ensure any deductions are accurate. It ensures that businesses are compliant with tax and employment regulations. It can also include total earnings to date, to help employees keep track of their finances. 

There are some exceptions to the requirement of a payslip for certain professions, such as self-employed. This is because self-employed workers manage their own income and are required to submit a tax return to comply with regulations. 

These exceptions also extend to professions such as the armed forces, police, merchants, and workers on fishing vessels. These sectors are often paid via a different system that best complies with the nature of their business, such as direct salary payments. 

Such exceptions exist because the nature of the work on contractual agreements differs from regular employment processes, where standard payroll processes apply. 

What information is included on a payslip?

For standard payrolls where businesses generate payslips, it’s important to have key information for the employee to understand how their pay is calculated and ensure any deductions have been correctly calculated.  

The key breakdown of the payslip is as follows: 

  • Pay period

  • Gross pay - total before deductions 

  • Net amount - total after deductions  

  • Bonuses - overtime, commission 

  • Deductions - national insurance, pension  

How do payslips work if an employee’s hours are variable?

If the employees' hours are variable between each pay period, for example they are on a zero hours contract, or they worked overtime, the employer must record variable hours on each payslip.

When hours vary week to week

When hours vary week to week, as an example, both employer and employee must keep an accurate record of these hours. They must record variable hours and the rate of pay on each payslip.

When rates of pay vary

If an employee works overtime or unsociable hours, they might get a different rate of pay for these additional hours. The employer should break down the hours into clear sections, showing the number of hours worked at different rates of pay.

When salaries are fixed

A payslip might seem quite straightforward with fixed salaries, but the employee might work additional hours over the month if their workload requires it. This has to be accurately reflected on their payslip, with the rate of pay for the fixed hours and additional hours.

Employer responsibilities for payslips in payroll

As demonstrated above, payslips can vary in many ways depending on your industry and your workforce. As an employer, you have a responsibility to ensure that businesses are compliant with tax and employment regulations. Issuing payslips before payday is good practice, to ensure the employee can check theirs for any errors before they receive their pay.

If a payslip in incorrect

If an employee finds any errors within their payslip, they should contact their employer immediately. If they have already tried to raise an issue and it has failed, they can raise a formal grievance, and file a formal complaint about the employer.

If an employee does not receive a payslip

If the employee does not receive a payslip by their usual/agreed/contracted pay date, they should check with their manager, payroll supervisor or employer immediately. If the employee has raised the issue, and they still don’t receive a payslip, they are entitled to raise a formal grievance against their employer, this can then be escalated to the employment tribunal.

How Payroll Solution Services can help

Payroll services can be complex, but it doesn’t have to be stressful. At Payroll Solution Services, we partner with businesses, providing dedicated account managers with expertise and pinpoint accuracy. Powered by payroll software, our services do more than generate payslips, and our clients receive a birds-eye view of their payroll affairs, wherever, whenever. 

Our services streamline the payslip process, saving you valuable time and internal resources. By outsourcing to specialists, businesses can reduce internal tasks and benefit from enhanced accuracy, improved security and full compliance. All while reducing the workload for internal teams. 

Scalable payroll solutions for every business type

From Sole Traders and SMEs to large enterprises, we provide payroll solutions services for every business type. With a dedicated account manager and real time updates at your finger tips, you can be confident in seamless payroll processes, always accurate, secure and fully compliant.

Fully Managed Large Enterprise Payroll

Includes:

  • Comprehensive payroll management

  • Tax filing and compliance

  • Direct deposit and payment options

  • Year-end reporting

Large Enterprise Payroll

Payroll Bureau Services

Includes:

  • Efficient payroll processing

  • Flexible service options

  • Data integration

  • Support and training

SME Payroll Services

Construction Industry Scheme

Includes:

  • Specialised payroll services

  • CIS deductions and reporting

  • Verification and validation

  • Detailed statements

CIS Payroll

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