Moving to a new job or starting work for the first time? New research from The Global Payroll Association (GPA), has revealed seven things you should always check when you get your first first payslip to ensure that you get the right pay and pay the right level of tax.
Melanie Pizzey, CEO and Founder of the Global Payroll Association, said: “Most of us look at our payslips with just one thing in mind: how much money have I earned? And while it’s important to check this number is correct, the rest of the information provided is just as important to our personal finances, both today and in the future.
“What’s more, as we move towards an increasingly digital workplace, the vast majority of us receive our payslip in a digital format – usually email.
“While payroll departments usually do a good job of recording employee information accurately, problems often arise for new starters, in particular, due to the payroll department not being notified in time or being provided with incorrect information.
“So it always pays to read your payslip as soon as it’s issued each month, as one month of incorrect pay can be inconvenient, but it’s far more annoying if it persists beyond that point.”
Here’s what to look out for:
Personal information
Aside from stating the amount of money you’ve been paid, personal information is the bread and butter of your payslip and, as a new employee, you need to double check that payroll has got every correct.
It may seem obvious, but one vitally important piece of information that can often be wrong is your name and so this is always the first thing to check. It’s also important to ensure that, if it does appear on your payslip, your address is also correct.
Payroll number
Some companies, especially big organisations with a large headcount, will assign you a payroll number which they use to identify you quickly and accurately when distributing earnings. When you get your first payslip, it’s worth checking with the payroll department that the number on your payslip matches the one in their system.
Dates and tax periods
Your payslip will display the period of time for which you are being paid, which is most commonly done on a weekly or a monthly basis. Make sure this is accurate on your first payslip and all subsequent payslips.
Your payslip will also state the tax period within which this money has been earned. It’s vital that this is displayed correctly because if not, it’ll be difficult to accurately prove when you earned the money should HMRC ever have questions or make a mistake with your taxes.
Tax code
HMRC allocates a tax code to all PAYE employees and this will appear on your payslip to describe how much you have been taxed. It’s vital to check that you have been assigned the correct code because if not, you can easily end up paying too much or too little tax.
You can see your tax code on the HMRC website where you’ll also be able to check that you’ve been allocated the right code based on your earnings and other aspects of your personal situation.
National Insurance number
In the UK, you must have a National Insurance (NI) number to legally work. Once assigned, your number will remain the same for your entire life and acts as your personal identification key to the entire social security system.
Your NI number is also used to record all of your tax and National Insurance contributions accurately, which is essential when building up your access and to things like benefits and pensions. That’s why it’s important to make sure your employer is using your correct NI number on your payslips.
Payment deductions
As well as stating how much you’ve been paid your payslip will also list any deductions that have been made to your earnings, such as income tax, NI contributions, and student loan payments. Every time you’re given a payslip, cast a careful eye over this list to make sure it all looks correct based on the amount of money you’ve earned.
Company communication
Finally, one thing you should always look for is whether your company has issued a communication to you. This won’t impact your pay or the tax you owe, however, many companies often use payslips as a method of delivering a company-wide communication.
It can be something as simple as a note or remainder of a public holiday, or company milestone, and can often be overlooked as it’s usually a single line of text.
