It’s National Payroll Week so now feels like a good time to review your payslip to make sure you’re receiving the right salary. Payslips contain a lot of essential information used to calculate your take-home wage so here are 5 important reasons why you should check it regularly:

 

• Personal information incorrect?

It’s your responsibility to check that your employers have recorded your personal information correctly, for example, your legal name, address, payroll number, National Insurance (NI) number and tax code. The information on your payslip gets reported to HRMC, and if incorrect, could cause problems down the line if payments have been calculated incorrectly or recorded under a different name.

 

• Wrong Tax code ?

As an employee, it’s your responsibility to check your tax code has been recorded correctly on your wage slip. This is really important as your tax code determines how much tax is deducted from your pay and could lead you to paying too much or too little. Remember, tax codes can also change especially if there has been a change in your circumstances, for example if you get married or begin claiming taxable state benefits. If you would like to find out more about tax codes, check out the UK Government website here.

 

• Wrong National Insurance (NI) number

Your employer is responsible for making sure your pay is correct but a common error found on wage slips is that the wrong NI number has been recorded. If this happens, these payments won’t accrue in your name, putting your entitlement to a state pension and other benefits at risk. If you would like to know more about National Insurance, check out the UK Government website here.

 

• Errors in variable payments like overtime/bonus payments? 

If you work shifts, work on commision or are on a zero-hour contract it’s important for you to check your wage slip to be sure your employer has calculated your wage correctly. Your employer must include a breakdown of any hours/overtime worked and the rate at which this will be paid on your wage slip. It’s wise to keep your own record of any hours/extra hours worked or any commision or bonus you are due to receive for comparison, so you can query any discrepancies. Other variable payments you may see on your payslip can include Statuatory Sick Pay (SSP) and Statuatory Maternity Pay (SMP).

 

• Errors in deductions

There may be further fixed or variable deductions from your salary other than income tax and national insurance. These can include pension contributions, union fees, court orders (for fines or debt repayments) and child maintenance payments. If you are repaying a student loan, you may also see a deduction if your income goes over the weekly or monthly threshold for your plan.

 

If you find anything wrong or anything you don’t recognise on your payslip, speak to your payroll department as soon as possible so they can investigate, provide you with more information and/or correct any errors.

These simple checks, if done regularly, can help you feel more in control and confident that you are receiving the right pay for the work you do. For more information on payslips, you can register to access our free financial capability e-learning modules here.

 

Payslip Top Tip !!

It’s a good idea to retain your payslips securely, to keep your personal and financial information safe, however they do have have other uses. For example, they can provide proof of your income when applying for credit, a mortgage or a rental tenancy. If you have been in an accident, they can be used to prove a loss of income in any compensation claim and they can be used to help prove your identity. They are also a great source of evidence if you have any queries with the HMRC regarding your income tax or national insurance payments. 

You can download both a word document and PDF copy of this resource via the links below. 

Download Word Document

Download PDF version