Occasionally, we get queries from employers about what information to include on employee payslips. In this article, NIKKI JOHNS answers some frequently asked questions and explains why it’s important to issue payslips every time you pay your employees.
Do I have to issue payslips every time I pay my employees?
Yes. Under Section 4 of The Payment of Wages Act, employers must provide employees with a written statement specifying the gross amount of the wages payable and the nature and amount of any deductions.
What happens if I don’t issue a payslip?
If you don’t provide your employees with a payslip, a Workplace Relations Commission Inspector can issue a Fixed Payment Notice. The statutory fine is €1,500. According to the WRC’s latest Annual Report, eight Fixed Payment Notices were issued in 2020.
What information should I include on the payslip?
The payslip must show the gross amount of the wages payable and details of any deductions.
What deductions should I include?
Employers are required to deduct PAYE and PRSI from their employees’ wages. Remember, each time that you make a payment to an employee, you have to notify Revenue of the payment amount, payment date and the Income Tax, Universal Social Charge and Local Property Tax deducted. Employees can view the figures you report to Revenue on the Revenue website. If there is any difference between the information you provided to your employee and the figures you provided to Revenue, this will need to be rectified.
You can also make deductions for things like pension contributions, health insurance and sports or social club membership depending on what you have agreed with employees in their employment contract.
Can I make deductions for breakages or till shortages?
While it may be possible to make deductions for a breakage or till shortage, it depends on the circumstances as there are restrictions on these types of deductions. You can find more information on the Workplace Relations Commission website.
Are there any rules about how to issue payslips? Is it ok to email them?
Payslips can be issued on paper, by email or via an online system however it is your responsibility as an employer to ensure that your employees’ payslips are treated confidentially. This includes complying with GDPR. In previous articles, we explained the importance of ensuring that the IT systems you use for payroll are kept up to date and access to systems limited to authorised individuals only.
What happens if there is a mistake on a payslip?
It’s important to catch and correct mistakes quickly as it can be difficult to address problems retrospectively. It’s a good idea to encourage your employees to check their payslip and notify you immediately if they think there is an error.
Need help with payroll or issuing payslips?
GroForth’s payroll service for clients includes calculating pay, processing payroll and issuing payslips. We can also look after your Revenue PAYE registration, manage tax allowance and holiday pay entitlements, and communicate with Revenue on your behalf. For more information, please contact us.