An employee has a right to expect a payslip from their employer.
The payslip must set out their gross wages (before deductions), the deductions taken from their wages, their net pay and how they will be paid. The payslip should also show the date of the wage payment or the period of pay which has been calculated together with the tax code which has been used to calculate the tax deduction. Most payslips will also show earnings for the year to date and how much tax and national insurance has been deducted so far during the year.
Tax and National Insurance are legal deductions which an employer must make from an employee’s pay. An employer can’t make any other deductions from wages unless they are set out in the employment contract or the employee has said in writing that they accept the deduction.
As an employer you must provide your employee with a P60 after the end of each tax year and before 19th May. The P60 is a statement of your employee's earnings for the year and the deductions for tax and national insurance which have been made. It will also confirm the final tax code in use at the end of the year. The P60 will contain your details as the employer and your PAYE reference number.
Employees need the information from their P60 if they need to complete a Self-Assessment Tax Return or to provide proof of annual earnings. The P60 can be provided in electronic or paper format and if the employee loses their copy they can request another.