It’s easy for employees and businesses to understand why digital payslips are becoming more common with technological advances that allow instant access to services on-demand such as online banking via a mobile phone.

While the traditional paper payslip at month’s end may be iconic, digital payslips offer many advantages for employees and employers. From reduced processing and staff costs to immediate access and security, to faster payments. Our latest blog post explains the advantages of digital payslips.

What is an Electronic Payslip?

Digital payslips, also known as e-payslips, electronic payslips or online payslips, are digital versions of payslips that can be accessed online and sent by email.

Employees can view their most recent pay slips, historical payslips, tax codes and National Insurance numbers. They can also update their personal information, such as their P60’s or payslips.

24/7 Instant Access to Payslips

The greatest benefit of digital paylips is the 24/7 instant access it provides employees to their payslips. Employees who work remotely or in remote areas will find the online portals easy to access from their mobile devices.

This benefits employees and lowers the administrative burden on employers who would otherwise have to manually produce and deliver paper paylips, as well replace any lost ones.

Lower Cost

You may be surprised to learn that digital payslips can save you money. You will reduce administrative costs, such as printing, paper, ink and postage, and fewer employees asking questions about their payslips.

The exact amount you can save will depend on your business. According to a study done by the Chartered Institute of Payroll Professionals, 83.3% of respondents reported a cost saving after switching to electronic payslips. Respondents were asked to quantify these savings. The results ranged from PS1,200 up to PS6,000 annually!

Historical Salary Details

Most digital paylip platforms offer access to past payslips. This can be very useful for employees who need to provide evidence when applying for loans, car finance, or mortgages.

Security and GDPR

A digital payslip is not like a paper one. It can only be accessed and accessed by the person who created it. This gives employees extra security and prevents anyone from accessing their payslip.

Digital format also means that payslips cannot be left behind and are less likely to be misplaced. Digital payslips can be accessed via a password-protected portal, which offers better security and GDPR compliance.

Environmental Benefits

Electronic payslips have clear environmental benefits. They require less paper, ink, and printing, leading to fewer printed documents. This can help you and your business achieve eco-friendly goals. Staff members might also appreciate the move to a greener business.

HMRC’s view on electronic pay slips

Since 2011, HMRC has accepted digital payslips. Other documents, such as P60s, can also be distributed digitally by the HMRC.

What Information Should Be Included on a Payslip

All employees should receive their payslips in either digital or paper format on or before payday.

• The employee’s earnings before and after deducting National Insurance.
• Any deductions.
• Pay is a measure of how many hours an employee works.

Notice that, as of April 2019, all employees must have an itemized payslip. This includes those who fall under the ‘worker status’.

Payroll Management Services

FCF provides a fully managed payroll service to clients in Bristol and the South West. We can help you switch to electronic payslips if you are unhappy with your current provider.