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Digital payslips are a more efficient, secure and eco-friendly option to traditional paper-based or emailed payslips.
Not only are digital payslips available on a range of devices but, done well, they can increase employee engagement with the payroll process and help improve their financial awareness and financial resilience.
Digital payslips offer a range of benefits for both employers and employees. In this article, we’ll delve into the concept of digital payslips, explore their content and highlight the advantages they bring to the table.
Understanding digital payslips
A digital payslip is an electronic version of a traditional payslip, which outlines an employee's earnings, deductions and other financial details related to their employment. A technological advancement from printed payslips or those that are emailed to employees or downloaded from a digital portal, digital payslips are now available through proprietary apps from some payroll companies.
Available on a range of devices, digital payslips typically display the following information:
Basic Information: This includes the employee's name and address, employee ID, National Insurance number and the period for which the payslip is generated.
Earnings: Details of the employee's gross salary and, if applicable, overtime pay, bonuses and other financial incentives.
Deductions: Information about tax deductions, insurance contributions, pension contributions and any other deductions relevant to the employee's financial situation.
Tax Information: Breakdown of tax calculations and tax codes applicable to the employee.
Company Contributions: Contributions made by the company to workplace pensions, health plans or other benefits.
Net Pay: The final amount that the employee will receive after all deductions have been accounted for.
See PayCaptain's digital interactive payslip here
What are the benefits of digital payslips?
Employee engagement and financial empowerment: Digital payslips provide employees with a detailed breakdown of their earnings and deductions. They often contain help icons – something that was previously unavailable – to help employees understand their salary deduction and how they’ve been calculated.
This transparency fosters a better understanding of their financial situation, helping to increase employee engagement in payroll and making them more empowered to manage their finances.
Ease of access: Digital payslips can be accessed instantly from any device where a payroll company’s app is installed, or via an employee portal.
Employees don’t need to wait for a payslip to be emailed or provided to them. Having access to their pay data on a mobile app can lead to higher levels of engagement in the payroll process. It also means an employee’s payslips never get lost or misplaced as they’re always available digitally.
Demonstrates an employee-focused approach: Adopting digital payslips showcases an employer’s commitment to modernisation, employee wellbeing and satisfaction. This can contribute to a more positive workplace culture and improved employee morale.
Efficiency: The transition to digital payslips streamlines administrative tasks for HR and Payroll teams, reducing cost overhead and reducing the reliance on in-house personnel.
Sustainability: Embracing digital payslips aligns with environmentally friendly practices by reducing paper waste. This contributes to corporate social responsibility efforts and demonstrates a commitment to sustainable business practices.
Cost savings: Organisations can cut costs associated with paper, printing, and distribution. Over time, these savings can be substantial and contribute to the company's bottom line.
Notification and alerts: Digital payslips can be accompanied by push notifications to employees, ensuring that they’re promptly informed when a new payslip is available or there are messages, reminders or changes relating to their payroll.
Reduced errors: Digital payslips are generated through automated payroll systems, minimising the risk of human errors in calculations and data entry. This accuracy ensures that employees receive the correct compensation which boosts morale and makes employees feel more valued.
Security and Privacy: Digital payslips are secure with encryption and the data only being visible to the specific employee. This reduces the risk of specific employee data being accessible either through hard copies or being sent through insecure email.
Convenience: Access to historical digital payslips simplifies the process of submitting tax information for employees who’re required to submit a Self-Assessment. Employees can refer back to accurate records of their income and deductions through the app or employee payroll portal.
The shift to digital payslips is not just a technological advancement, but also a strategic and effective business decision that benefits both employers and employees. From environmental responsibility to increased efficiency and driving engagement of employees in the payroll process, the advantages of digital payslips are varied and wide-ranging.
If you’d like to know more about digital payslips, which companies offer them and the functionality that’s available to employees, take a look at our articles below:
Which payroll companies offer digital payslips?
Like to know more about digital payslips?
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