- April 30, 2019
- Posted by: STERLING FINANCE
- Category: Payslip Law, Payslips, Tax Saving Accountant
Normally employee’s payslips have one line description “monthly salary” or “weekly salary”. This includes everything, overtime, sick pay, time in lieu etc. This has been the case as long as we can all remember. From 01.04.2019, it has changed. Every employee’s payslip should be itemised for each type of pay and each type of deduction.
This amendment came in place to increase the transparency in the employee and employer relationship. This amendment or receiving itemised payslips, allows workers to be paid fairly and accurately. If workers are paid incorrectly, this will allow them to react faster and allow them to become aware of their rights.
From the reformed Employment Rights Act, the changes that need to be included in the payslips are:
- The employee’s gross salary or wage
- Net salary or wage
- single, combined amount or itemised list of hours worked for different rates of pay
If you fail to give your employees itemised payslips, a tribunal can declare that you have breached your workers’ rights and then force you to repay your workers in respect of the deductions made. Itemised payslips make it much easier for HMRC to spot and prosecute businesses to pay below the National Minimum Wage which increases in April.
To find out more about Changes to Payslip Law please contact us at Sterling Finance on 0161 339 4989 or email firstname.lastname@example.org.