Page 36 - LITRG_PA-final-2018

Knowing your way around a payslip can be useful. The following breakdown may
assist you to understand the various elements of the payslip on the previous page:

1. Employer Name
Your name.

2. Employee’s personal information

Your employee’s name and sometimes their home address will be shown.
3. The tax year

Remember tax year runs from 6 April in one year to 5th April in the next.

4. Employee’s payroll number
If you have more than one employee you might find it helpful to allocate
payroll numbers to them to help identify them.
5. Wk/Mth

The number here represents the tax period for that payslip, for example if
you are paid weekly in 2018/19 then week 01 = week 6 April to 12 April.
If you are paid monthly, then month 01 = April and 12 = March.

6. Employee’s tax code
Your employee’s tax code will be sent to you by HM Revenue & Customs
(HMRC). It is the code that tells you how much tax to deduct from their wages.

7. Employee’s National Insurance number
This is usually shown on a payslip.

8. Payments

This will show how much your employee has earned in wages before any
deductions are made. It might also show how their pay was calculated, for
example hourly rate and the number of hours worked. It could also show any
extra payments they have earned on top of basic pay like bonuses, or overtime.

9. Deductions – tax and National Insurance contributions
Your payslip must show the amount of variable deductions, like tax and
National Insurance contributions, and any contributions your employee is
making to a workplace pension. There may be other deductions too. See
more on deductions on page 38.

10. Summary of the year to date
Some payslips will have a section which shows how much your employee
has been paid so far in this tax year. It might also show totals for how much
your employee has paid in tax, National Insurance contributions, student
loan deductions and pensions.
11. Net pay – what’s left

The most important figure on the payslip for most people is their take-home
pay. This is the amount your employee actually receives once all the
deductions have been made.

12. Payment method
The payslip may also show the method of payment, e.g. cash, BACs etc.

page 36 Taking on a personal assistant – a basic guide • Final thoughts