In short, yes. Whether your employee works part time and is paid beneath the Tax and National Insurance thresholds or works full time and pays both tax and NI, you are required to provide them with a payslip
However, if the person working for you is not an employee, e.g. contractors, freelancers or ‘worker’ you are not required to give them a payslip.
The definition of an employee is based on a number of factors, but as a general rule if this person works an agreed number of hours per week, they’re paid an agreed sum regularly, and are required to attend work unless they are on leave they are likely to be classed as an employee. A more detailed definition of an employee can be found in the Knowledge Nugget blog about Employees.
A decorator painting your house, and them moving onto another person’s house is not an employee.
A payslip should show gross pay and any deductions made by the employer. These are generally PAYE Tax and National Insurance. There may also be pension deductions or deductions required by at Attachment of Earnings order. Any other deductions may be unlawful unless written into the employee’s contract.
Further information about what a payslip should contain can be found on the Gov.uk website here:
https://www.gov.uk/running-payroll/payslips
If you are uncertain about how to produce a payslip for your employees, PayrollAbility is happy to discuss the options with you and how we can help you. Call today for a chat.
