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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 payroll 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.
Which companies offer digital payslips?
epayslips provides pay information – payslips, P60s and P11Ds – to employees through any internet-connected device. Employers can also communicate with their teams through the platform by sending messages, company announcements and documents which, they say, can eliminate the need for a company intranet, potentially saving both time and money. Employees can manage their personal information and dashboards can be customised with company branding for a more connected experience. epayslips don’t actually process payroll but their solution, they say, is ‘software agnostic’ and ‘works with any payroll or HR software.’
IRIS offers a digital solution through PayDashboard, their cloud-based payslip delivery system. Once the payroll manager has processed the payroll, it’s uploaded to PayDashboard. On the publication date, employees receive a notification that a new payslip is available and they can login with their email address and view their payslips. They can also download and print PDF versions of their payslips. Employees can search and view payslips and the dashboard contains financial information on tax codes and allowances and pay-related information. Payroll data is provided in a series of infographics and charts.
Moorepay, a Zellis company, offers payslips and access to digital records such as P60s, which can be downloaded via the mobile app and forwarded on to third parties. The app incorporates employee self-service functionality such as submitting expenses, timesheets and requests for leave, all of which can be approved or declined by line managers in real-time. Moorepay’s app also offers employee discounts which, they say, is ‘a simple way to offset the demand for salary increases.’ Whilst this functionality doesn’t help employers help employees build financial resilience, it can put money back into the pockets of employees with savings on anything from DIY to fashion purchases.
PayCaptain, the world’s first Plain Numbers-certified digital payslip, PayCaptain provides payslips in either a graphical, traditional or the new Plain Numbers format. Designed for responsible employers to support their employees and pay them fairly, PayCaptain’s digital payslips are easy to understand and lead to increased engagement of workers with their payroll.
Payslips are broken down into three sections – earnings, deductions and payments – and information is displayed in both chart and table format for easier understanding. Employees can click on the help icon for more detailed information as well as receive UK-based employee payroll support across multiple channels including phone, WhatsApp, AI chatbot and email.
Containing a host of additional functionality to improve individuals’ financial circumstances, knowledge and savings, PayCaptain helps reduce financial stress and build resilience – recognised factors benefiting both productivity and employee retention. To see a short video about PayCaptain’s digital payslips, click here.
Sage HR’s mobile app lets users access a graphical payslip which then breaks down gross pay and deductions and take-home pay. Users can toggle between views. By tapping on the payslip, more information is provided how net pay has been calculated and payslips can be shared or saved on devices. Employees can view other tax documents, such as their P60 by toggling to P60s on the Payslips and P60s page. Payslips can also be viewed on the web browser version of Sage HR.
The shift to digital payslips is not just a tech advancement, but also a strategic and effective business decision that benefits both employees and employers. 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, why not book a demo with our friendly and helpful payroll experts?
