Requirement for payslips

Requirement for payslips

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What is the legal requirement for payslips.

Scenario thus, owner manager company.

Payroll below tax/NI thresholds.

P35 and P60 prepared and submitted etc.

CSA telling me it is a legal requirement to give an employee payslips, he doesn't want the expense.

ERA 1996 says thus:

8 Itemised pay statement.

(1)An employee has the right to be given by his employer, at or before the time at which any payment of wages or salary is made to him, a written itemised pay statement.

(2)The statement shall contain particulars of—

(a)the gross amount of the wages or salary,

(b)the amounts of any variable, and (subject to section 9) any fixed, deductions from that gross amount and the purposes for which they are made,

(c)the net amount of wages or salary payable, and

(d)where different parts of the net amount are paid in different ways, the amount and method of payment of each part-payment.

Call me picky, but to me there is a big difference between a right to be given and a requirement to give.

Answers on a post card please!

Replies (8)

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By User deleted
20th Jun 2011 15:07

And, there's more ...

... as a director, but without a service contract, would I be right in thinking he is not a employee and ERA 1996 would not apply. How does that fit in with the company PAYE scheme?

Thank you

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By MarionMorrison
20th Jun 2011 15:26

What Expense?

 Why not just do some payslips?  It'd take about 30 seconds to lash something up showing Tax, Eees and Eers NI etc.  Given that this is probably a director's salary of £500/mo with no deductions, that'll be even simpler.  There isn't a minimum standard of prettiness.

Legislation says the employer has a legal obligation to provide if asked.  All CSA are doing is saying he has to ask. If it were a mortgage application requiring payslips, it'd be no different (although they might be less happy with a bit of scuzzy Excel. 

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By User deleted
20th Jun 2011 16:27

It's the principal

I don't like being told things are law when they are not.

Further research has confirmed as an officer not on a service contract he is not an employee under ERA 1996; and so he has no right to be enforced. So I can tell CSA where to go, I can give them his 2010/11 P60. If the client wants to go down Smiths and buy a payslip pad and write them out that is up to him

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PAH Accounting Devizes Wiltshire
By Phil Hendy
20th Jun 2011 17:14

Letter from the accountant

 Usually a letter from the accountant explaining the pay scenario is sufficient for mortgage applications so should be sufficient for CSA. What will have happened is that you have spoken to a junior member of staff who doesn't understand owner/managed entities.

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By bygwyg
24th Jun 2011 13:23

Pay Slips

If an employer can't be bother to produce pay slips for employees, can he be bothered to pay the tax and NI deductions to HMRC?

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By pauljohnston
24th Jun 2011 13:35

Is not the director in charge of the company?

Surely it is over to him to decide whether he is paid weekly monthly or annually.  I agree with another poster the clerk at the CSA is just not well informed enough.  Perhaps you should prepare a nice three page letter to send to the clerk explaining.

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By Vince54
24th Jun 2011 14:41

Payslips

Under ERA, only employees are required to be provided witha payslip.  As expense appears to be a sticking point, payslips can be provided electronically - they don't have to be paper based.

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By User deleted
24th Jun 2011 21:39

bygwyg...

... try reading th equestion, there is no PAYE/NIC to pay.

It is the principle of the thing the client is agin', CSA coming in stomping over private arrangements etc threating all sorts, more importantly all sorts that are incorrect in law. Yes, I could have written them out on a pad by hand in the time I've spent on this thread. I presume those advocating  playing ball have never fallen foul of these arrogant jumped up little Hitlers or else they would understand the point of this thread.

Just because something is the easiest thing to do, doesn't make it the right thing. It is these constant errosions that have brought us to the current pass of drowning in red tape and bureaucracy.

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