You must produce a payslip for your staff. This is required under the Pay As Your Earn (PAYE) scheme. Additionally, your company must keep a proper payroll record too.
Legally, your staff can make a compliant to Employment Tribunal if you failed to provide payslip to your staff.
Generally, Payslip should include the following information:
Gross Pay in payslip
Gross pay is the amount of salary or wages your staff earns before you make any deductions. The amount comprises the basic wage/salary and any other elements of pay due in the pay period. This may include elements such as:
- Bonuses
- Commission
- Holiday pay
- Statutory Sick Pay
- Maternity pay
- Overtime
Gross pay doesn’t include items such as loans or advances in wages, expenses, or redundancy payments made to your staff.
PAYE Deductions
- Income Tax Deduction
- National Insurance Contributions Deductions
If you’re intending to make any deductions other than the Income tax and national insurance contribution. You need prior written consent from your staff in writing. Otherwise, the deductions is illegal.
Tax Code
Your staff should have a unique tax code that is issued by HMRC. The tax code represents the amount of tax free income your staff entitled to for each tax year. The tax code is effectively representing your staff personal allowance and tax free income entitlement.
Net pay
Net pay is what your staff left with after the PAYE deductions. This is often referred to as take home pay.
