{"id":7433,"date":"2024-02-06T18:05:12","date_gmt":"2024-02-06T18:05:12","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=7433"},"modified":"2024-02-06T18:17:23","modified_gmt":"2024-02-06T18:17:23","slug":"understanding-payslips-help-employees","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/understanding-payslips-help-employees\/","title":{"rendered":"Understanding payslips: 7 tips to help your employees"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tUnderstanding payslips: 7 tips to help your employees\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2024-02-06T18:05:12+00:00\">6 February, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Understanding payslips: 7 tips to help your employees\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/understanding-payslips-help-employees\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/staceymcintosh\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/Stacey-McIntosh-350-1.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Stacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">How well do you understand your company&#8217;s payslips? <\/p>\n\n\n\n<p class=\"\">Better yet, how well do your employees understand them?<\/p>\n\n\n\n<p class=\"\">Understanding payslips can be confusing for employees. While some never look at their payslips, others go over theirs with a fine-tooth comb, checking for discrepancies.<\/p>\n\n\n\n<p class=\"\">You need to be able to address any queries your employees may have and demonstrate that your payroll processes are accurate every time.<\/p>\n\n\n\n<p class=\"\">If they don&#8217;t understand their payslips, they could easily miss important details.<\/p>\n\n\n\n<p class=\"\">So, how do you break down all the calculations, formulas and deductions in layman&#8217;s terms?<\/p>\n\n\n\n<p class=\"\">Simon Gibbs is the director of Lite Consulting, a consultancy firm that works with <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/hr-payroll-software\/\">HR and payroll<\/a> managers as they upgrade their systems to the cloud.<\/p>\n\n\n\n<p class=\"\">Below, he talks about employees&#8217; changing expectations around payslips, and where those managing payroll processes are looking to improve their company&#8217;s payslips.<\/p>\n\n\n\n<p class=\"\">He also offers seven tips for you to improve the clarity of your company&#8217;s payslips.<\/p>\n\n\n\n<p class=\"\">Here&#8217;s what we cover in this article:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#clear-anchor-link\">1. Be clear on how your payroll team calculates pay<\/a><\/li>\n\n\n\n<li><a href=\"#improve-anchor-link\">2. Improve clarity around employer-paid benefits<\/a><\/li>\n\n\n\n<li><a href=\"#use-anchor-link\">3. Use customisation for clarity around understanding payslips<\/a><\/li>\n\n\n\n<li><a href=\"#digitise-anchor-link\">4. Digitalise your payslips<\/a><\/li>\n\n\n\n<li><a href=\"#implement-anchor-link\">5. Implement employee self-service functionality<\/a><\/li>\n\n\n\n<li><a href=\"#plan-anchor-link\">6. Plan ahead for leavers<\/a><\/li>\n\n\n\n<li><a href=\"#add-anchor-link\">7. Add understanding payslips to your onboarding process<\/a><\/li>\n\n\n\n<li><a href=\"#final\">Final thoughts on understanding payslips<\/a><\/li>\n<\/ul>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-22f63cc4-4bd3-47ed-93cf-d71df67c49a8\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-22f63cc4-4bd3-47ed-93cf-d71df67c49a8\"\n\t>Download your free copy of The ultimate guide to payroll compliance<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"clear-anchor-link\">1. Be clear on how your payroll team calculates pay<\/h2>\n\n\n\n<p class=\"\">Simon points out that the most frequent payslip question from salaried employees is about how the payroll team calculates their pay.<\/p>\n\n\n\n<p class=\"\">He says: &#8220;One of the big things that always confuses people is the hours that appear on a payslip are generally averaged across 12 months for salaried employees. A shorter month throws off their calculations.<\/p>\n\n\n\n<p class=\"\">&#8220;Their payslip shows they&#8217;ve been paid for working, say, 162 hours, but they&#8217;ve actually only worked 130.&#8221;<\/p>\n\n\n\n<p class=\"\">Adding that detail to your salaried employees&#8217; payslips could slow down those types of enquiries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"improve-anchor-link\">2. Improve clarity around employer-paid benefits<\/h2>\n\n\n\n<p class=\"\">Another problematic area for understanding payslips is how the other elements of your employees&#8217; compensation is documented, such as for pensions.<\/p>\n\n\n\n<p class=\"\">Simon says: &#8220;There are a lot of questions about what the employer pays and what they pay, in terms of how it&#8217;s shown on the payslip.<\/p>\n\n\n\n<p class=\"\">&#8220;There are still a lot of payslips that don&#8217;t cover all of the elements in enough detail.&#8221;<\/p>\n\n\n\n<p class=\"\">It&#8217;s worth expanding this field on the payslip to include this itemisation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"use-anchor-link\">3. Use customisation for clarity around understanding payslips<\/h2>\n\n\n\n<p class=\"\">Simon says the standard payslip with basic pay information isn&#8217;t enough for employees to get the full picture.<\/p>\n\n\n\n<p class=\"\">Simple updates to your payslip template could make a difference in the volume of queries.<\/p>\n\n\n\n<p class=\"\">He adds: &#8220;I think in the UK there&#8217;s a shift to a more customisable and bespoke payslip that fit the specific requirements of the company.<\/p>\n\n\n\n<p class=\"\">&#8220;Instead of just one template, HR managers should compare payslip layouts and details to see the many levels of detail that they can and should include.&#8221;<\/p>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-22f63cc4-4bd3-47ed-93cf-d71df67c49a8\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-22f63cc4-4bd3-47ed-93cf-d71df67c49a8\"\n\t>Download your free copy of The ultimate guide to payroll compliance<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"digitise-anchor-link\">4. Digitalise your payslips<\/h2>\n\n\n\n<p class=\"\">The most significant change that has happened to payslips is digitalisation, which is to your benefit in several ways.<\/p>\n\n\n\n<p class=\"\">Simon says: &#8220;Digitalising has made it easier to create payslips because most software gives you a choice of templates that you can configure to what you think your business needs.<\/p>\n\n\n\n<p class=\"\">&#8220;Now you&#8217;re able to put a narrative on a payslip much easier because it&#8217;s electronic\u2014way easier than if it were pre-printed stationery.<\/p>\n\n\n\n<p class=\"\">&#8220;So if you&#8217;re getting a lot of queries about the average hours per month, for example, you can easily update your payslip to address that and stop those calls.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"implement-anchor-link\">5. Implement employee self-service functionality<\/h2>\n\n\n\n<p class=\"\">Employee self-service functionality is critical when it comes to understanding payslips.<\/p>\n\n\n\n<p class=\"\">In today&#8217;s digital society, employees expect the same on-demand access to their payslips as they get in other areas of their lives.<\/p>\n\n\n\n<p class=\"\">With <a href=\"https:\/\/www.sage.com\/en-gb\/payroll-software\/\">payroll software<\/a>, you can create an FAQ (frequently asked questions) and answers for common questions about payslips that employees can access and review on-demand.<\/p>\n\n\n\n<p class=\"\">This way, they can get immediate answers as they need them, and you don&#8217;t have to spend time addressing the same questions repeatedly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"plan-anchor-link\">6. Plan ahead for leavers<\/h2>\n\n\n\n<p class=\"\">&#8220;The exit stage is still a challenge for organisations to find the right solution to make sure employees can access their payslips as they need to after they&#8217;ve left the company,&#8221; says Simon.<\/p>\n\n\n\n<p class=\"\">&#8220;Think about how a person will take their payslips with them when they leave.<\/p>\n\n\n\n<p class=\"\">&#8220;When a person leaves an organisation, usually their access to the HR portal is turned off or left on for a short time. Both can confuse former employees in the end.<\/p>\n\n\n\n<p class=\"\">&#8220;Some organisations have a separate, third-party portal where they can upload the employee&#8217;s final documents. <\/p>\n\n\n\n<p class=\"\">&#8220;But by doing that, you risk non-compliance with <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/payroll-processes-gdpr\/\">GDPR<\/a> because you end up with payslips in multiple places for multiple employees.<\/p>\n\n\n\n<p class=\"\">&#8220;For me, it&#8217;s a process that I recommend you give a lot of clarity and thinking through.&#8221;<\/p>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-22f63cc4-4bd3-47ed-93cf-d71df67c49a8\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-22f63cc4-4bd3-47ed-93cf-d71df67c49a8\"\n\t>Download your free copy of The ultimate guide to payroll compliance<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"add-anchor-link\">7. Add understanding payslips to your onboarding process<\/h2>\n\n\n\n<p class=\"\">This may seem like a no-brainer, but Simon says it&#8217;s rarely even considered when mapping the employee experience.<\/p>\n\n\n\n<p class=\"\">He adds: &#8220;I don&#8217;t think it&#8217;s ever covered in an induction programme. I&#8217;ve personally never had someone talk through my payslip with me.<\/p>\n\n\n\n<p class=\"\">&#8220;But if we look at how payroll is processed, I have this view that a lot of organisations make it artificially complex. <\/p>\n\n\n\n<p class=\"\">&#8220;It doesn&#8217;t need to be as complicated as it&#8217;s made.<\/p>\n\n\n\n<p class=\"\">&#8220;Once you <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/elevating-payroll-performance-guide\/\">simplify those processes<\/a>, it will be easier to display distinctions such as single and double-time pay, <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/holiday-entitlement\/\">holiday entitlement<\/a>, and everything else.<\/p>\n\n\n\n<p class=\"\">&#8220;Because the problem is people see things on their payslip and don&#8217;t fully understand what they are. So, it&#8217;s crucial to set those expectations right when they are joining, so those elements aren&#8217;t confusing.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts on understanding payslips<\/h2>\n\n\n\n<p class=\"\">The payslip is a vital document for many reasons, and it&#8217;s important for the sake of <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/fuel-employee-engagement-business\/\">employee engagement<\/a> that your employees clearly understand their compensation.<\/p>\n\n\n\n<p class=\"\">This builds their trust in your company and their perceived value as an employee. <\/p>\n\n\n\n<p class=\"\">It also saves you time by offering all the information they need upfront.<\/p>\n\n\n\n<p class=\"\">Upgrading to <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/payroll\/\">cloud payroll software<\/a> inherently resolves the common problems with payslips through automation, customisation, and smart data.<\/p>\n\n\n\n<p class=\"\">Using it gives you the flexibility to create the kinds of payroll documents that are best suited for your business model, and to make updates quickly as needed.<\/p>\n\n\n\n<p class=\"\">Simon concludes: &#8220;There needs to be automation within payroll. There needs to be connectivity with the relevant tax offices so you&#8217;re always up to date with tax codes.<\/p>\n\n\n\n<p class=\"\">&#8220;There is a such thing as static payroll where everyone gets the same amount every month. But that isn&#8217;t the case for many businesses.<\/p>\n\n\n\n<p class=\"\">&#8220;And even in those cases, automation is crucial to make the job easier.&#8221;<\/p>\n\n\n\n<p class=\"\"><em>Editor&#8217;s note: This article was first published in May 2020 and has been updated for relevance.<\/em><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">The ultimate guide to payroll compliance <\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Facing the challenge of keeping up with payroll compliance? Read this guide for essential tips to make sure your business complies with the relevant payroll legislation.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-22f63cc4-4bd3-47ed-93cf-d71df67c49a8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t<div class=\"single-cta__downloads\">\n\t\t\t\t\t\n\t\t\t\t\t11,055 readers have downloaded this guide\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1213\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2019\/01\/PMARCHITECTS_BB_03_078_2018_32240-1213x810.jpg\" class=\"single-cta__image\" alt=\"Get the ultimate guide to payroll legislation\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2019\/01\/PMARCHITECTS_BB_03_078_2018_32240-1213x810.jpg 1213w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Understanding payslips can be confusing for employees. Follow these tips to make things clearer for them and save time for your payroll team.<\/p>\n","protected":false},"author":346,"featured_media":5952,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6],"tags":[45,41,37,38],"business_type":[4,3],"lilypad":[],"context":[],"industry":[],"persona":[71,73,74],"imagine_tag":[92,96,200,109],"coauthors":[353],"class_list":["post-7433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-employee-engagement","tag-hr-process","tag-payroll","tag-payslips","business_type-small-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Stacey McIntosh","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2019\/01\/GettyImages-503278812.jpg","imagine_tags":{"92":"HR and Payroll","96":"Medium businesses","200":"Payroll","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/7433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/346"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=7433"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/7433\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/5952"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=7433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=7433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=7433"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=7433"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=7433"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=7433"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=7433"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=7433"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=7433"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=7433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}