Payslips are a legal requirement for employers in the UK, not an optional courtesy. Every employee and worker must receive a payslip each time they are paid, and it must contain certain specific information. Understanding what a payslip must include and when it must be provided helps founders meet this obligation correctly from the first payroll run.
A payslip is a document provided to an employee showing the details of their pay for that pay period. It must include gross pay, the amounts and reasons for any deductions such as Income Tax, National Insurance, and pension contributions, and the net pay received. For employees whose hours are variable, the number of hours worked must also be shown where the pay varies as a result. Payslips can be issued electronically as well as in paper form.
Failing to provide payslips, or providing payslips that do not include all the required information, is a breach of employment legislation. Employees can make a complaint to an employment tribunal if their payslips are missing or inaccurate. Payroll software typically generates payslips automatically as part of the payroll process. Our guide to payslips for UK employers covers the legal requirements and best practice for distributing them.