With advancements in technology giving instant access to on-demand services such as online banking from a mobile phone, it’s easy to see why digital payslips have become more commonplace for businesses and employees around the world.
Whilst the paper payslip at the end of the month may seem somewhat iconic, there are many benefits to payslips in a digital form for both employers and employee; from reduced processing and staff costs to instant access and security. Find out more about the benefits of digital payslips in our latest blog post.
What Is an Electronic Payslip?
A digital payslip, which may be referred to as an e-payslip, electronic payslip or online payslip is a digital version of a payslip which is often sent via email and/or accessed through an online portal.
In addition to viewing their most recent payslip, employees are often able to view historical payslips, tax codes, National Insurance numbers, P60’s and update their personal information.
Instant 24/7 Access to Payslips
Perhaps the biggest benefit of digital payslips is the instant 24/7 access that it gives employees to their payslips. The online portals can often be accessed via a mobile device as well as a desktop, this is a huge benefit for employees who may not be based in an office but instead work remotely or out in the field.
Not only does this benefit employees, but also reduces the administrative burden for employers who would have had to produce and deliver paper payslips manually, as well as replace any that may have been lost.
Did you know that switching to digital payslips could save your business money? Digital payslips offer a number of financial benefits including reduced admin, printing, paper and ink, postage and storage space costs; you will also benefit from an inevitable reduction in admin queries from employees regarding their payslips.
Just how much you can save will vary from business to business, according to a study by the Chartered Institute of Payroll Professionals (CIPP), 83.3% of those surveyed reported a cost savings after switching to electronic payslips. When asked to quantify those savings, respondents answers ranged from £1,200 to £6,000 per year! You can read the full study here.
Access to Historical Salary Details
In addition to current payslips, most digital payslip platforms will provide employees with access to historical payslips, this can be a real benefit when they are required for evidence whilst applying for mortgages, car finance and loans.
Security and GDPR
Unlike a paper payslip, a digital one can only be accessed by the relevant individual with a unique login and password, giving employees an extra layer of security for their payslip, preventing anyone else from accessing it and negating the need for keeping a box or folder of documents containing sensitive information within their home.
Additionally, in a digital format, payslips can’t be left lying around and there is less risk of them being sent to the wrong person. As well as offering better security, digital payslips that are accessed through a password-protected portal can also be considered better with regards to GDPR.
The environmental benefits of electronic payslips are clear, with fewer documents being printed, less ink and paper is being used within the business. As well as helping contribute towards your own eco or environmental goals as a business, staff members may appreciate this move towards a greener business.
What Is HMRC’s View on Electronic Payslips?
HMRC have accepted digital payslips since 2011, and also allow other documents such as P60s to be distributed in a digital format.
What Information Needs to be Included on a Payslip?
All payslips issued to employees in digital or paper format should be given to employees on or before payday and must include:
- The earnings of the employee before and after deductions such as National Insurance.
- The amount of any deductions.
- The number of hours worked if the employees pay depends on time worked.
Note that from April 2019, new legislation was passed that meant all employees must be provided with an itemised payslip, including those that fell into the ‘worker’ employment status.
Payroll Management Services Bristol
At FCF, we provide a fully managed payroll service to clients in the Bristol and South West area. If you are looking to make the switch to electronic payslips, or are unhappy with your current provider, we can help you make the switch and using HMRC approved software, ensure you are fully compliant with payroll and auto-enrolment legislation.
For more information, call us today on 0117 379 0810 and arrange a free consultation with one of our expert team.
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This post was written by Steph Roffey