Understanding Your Payslip Essay

310 WordsOct 28, 20142 Pages
ERR Task. Understanding Your Payslip. No. | Item | Description | 1 | Employee Number | Each employee in an organisation is given a unique number that they keep throughout their employment. This number means that an employee's record can be found on the pay system. | 2 | Employee Name | It is important that your name is correct. If not the HMRC will need to be contacted. | 3 | Process Date | This could be your pay date or the last day of the previous payable month. | 4 | National Insurance Number | Your unique identifier is used by the HMRC to track your Tax and National Insurance. | 5 | Payments | Your total you have earned broken down if required, before any deductions have been taken. | 6 | PAYE Tax | This is determined by the Tax Code and National Insurance Category. This money is taken away from your wages. Your employer then pays your Tax and National Insurance to HMRC. | 7 | National Insurance | It is the system of compulsory payments by employees and employers to provide state assistance for people who are sick, unemployed, or retired. | 8 | Name and Address | It is important that your address is correct. Your employer may send your payslips here and it is the address HMRC will use to contact you. | 9 | Tax Code | This is allocated by HMRC. It tells your employer how much you can earn before any Tax is deducted. eg 944L = you can earn up to £9449 per year before Tax. | 10 | Payments This Period | These are the total figures such as Gross Pay, Taxable Pay and Deductions for the pay period. | 11 | Payments to Date | These are the total figures such as Gross Pay, Taxable Pay and Deductions that have accumulated since the beginning of the Tax Year (6th April - 5th April). | 12 | NET
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