Payslips are Changing 6 April - Are You Ready?

Payroll laws are complicated – especially when it comes to managing worker hours, holiday pay, and national minimum wage requirements. With new legislation introduced earlier this year, employers must now make changes to payslip information beginning 6 April 2019 to ensure compliance with minimum legal requirements and increase transparency for employees.

Payslip Problems
Payslip requirements have been in place for many years, and by law must include total gross pay, net pay due, statutory and contractual deductions, method of payment and date, and be given to employees on or before pay day. Employers have inadvertently (or in some cases, deliberately) been making incorrect deductions, not paying employees for holiday pay due to calculation errors, and making it difficult for employees to determine if they are being paid correctly for each pay period. Seasonal and hourly workers are affected the most, as rates of pay can change within the same pay period.

The Solution
The new payslip requirements going into effect 6 April will ensure workers can track hours and pay according to what they have worked in that pay period. The new requirements demand that employers either show the combined number of hours worked that the employee is being paid for, or itemise the different types of hours and rates of pay for those hours. Protecting workers is the objective of the new payslip requirements and will hold employers accountable.

Next Steps
If your payslip process is not currently able to itemise or show specific hours and rates of pay, you need to plan ahead before the 6 April deadline. Make sure your payroll provider can collect the data you need to process the new payslips. If you have a large amount of seasonal, short-term, or varied hour workers, you must be in compliance by 6 April. Make sure your employees are being paid for the time they work, and your payroll and payslip process is meeting the new requirements so you avoid fines and maintain best practices for your employees.

If you need help getting your payroll and payslip process under control, we can help. Our easy-to-use payroll software is compliant with the new payslip regulations, and our CIPP-certified staff is available to help anytime. Learn why Payescape was rated the 2018 best all-around payroll provider for UK companies by Expert Market!