Wednesday, 25 August 2010

Check the small print

Shropshire employees are being urged to make sure they understand the finer details of their payslips and not ignore the small print.

Lynsey Woolley, from our Employment Law team, said figures showed almost ten per cent of workers were unsure what some of the references meant.

“There is so much confusion about payslips that the Institute of Payroll Professionals has organised a national payroll week to help make things clearer.” The week will be held from September 6 to 10, and during the week employees will be encouraged to visit their payroll department to discuss any queries they may have.

“The aim of the initiative is to help employees decipher the small print because if they are unsure of what the details mean, they may not be getting paid correctly,” said Lynsey. “And it’s no good simply comparing your slip with the person who sits next to you in the office, as everyone’s wages can be different.”

She said an itemised payroll was a legal requirement, but the levels of National Insurance contributions, taxes or pension reductions, were not always easy to understand.

“It’s important that employees take this opportunity to seek advice in order to monitor their pay correctly, particularly in such difficult economic times.” Lynsey said employees should also keep copies of their payslips and any other related documents, such as P60s, for at least 22 months from the end of the tax year they correspond with.

“You may need these documents if you are applying for a mortgage or tax credits, so it’s vital that they are kept somewhere safe.”