Understanding Your Payslip
01st August 2016
Your payslip has a lot more information on it than just your take-home pay. It's an important document, but a lot of people either don't really understand it, or barely even look at it. Here are a few ideas on how to get the most out of it.
Do I Need To Get A Payslip?
The most important consideration with payslips is to make sure you're getting them in the first place. If your employer's a bit shy about providing you with payslips, that a could be huge red flag for you.
Keep in mind that it doesn't need to be a physical piece of paper. You might get your payslips digitally. However they arrive, don't lose them. You might need them to make sure you're being paid correctly, that you're not forking out too much tax or if you need to prove your earnings for any other reason.
What Should I Look For On My Payslip?
While it's tempting to ignore everything other than the "bottom line" of your payslip, there's a lot of useful information on there. You'll be able to see how much you're getting paid before tax, and what National Insurance your paying out. Any other deductions coming out of your wages should show up too, although you might not get precise details.
How Do I Check My Tax Code On My Payslip?
If your payslips show your tax code, they can be useful to make sure you're paying the right amount of tax. If your tax code changes unexpectedly and you don't know why, your payslip's probably the first place you'll notice it. Being on the wrong code can be a serious headache, so it's worth keeping track of yours.
Should My Payslip Show Any Overtime Or Bonuses?
Depending on your job and employer, you might find overtime payments, bonuses and other additional payments on your payslip. This is all important information to keep track of. Other things to watch out for are your National Insurance number, payroll number and personal details. If a mistake creeps in here, it might well tell you that there's a problem in how you're being paid.
Can I See My Workplace Pension Contributions On My Payslip?
If you're paying into a workplace pension, your payslip should let you see how much you're putting in. You might also be able to see your employer's contributions. This kind of thing can be worth knowing when you're planning for the future.
What Else Can My Payslip Tell Me?
There's a lot of other information you can keep tabs on this way, from maternity and sick pay to student loan repayments. The point is, get to know your payslips. Get comfortable reading them, and get used to checking the small details.
If there's something there you don't understand or can't explain, make some noise about it. It's always the problems that you didn't see coming that cause the most damage.
Do I Need My Payslips To Claim A Tax Refund?
If you're thinking of claiming a tax refund, then your payslips can be a key part of getting back what you're owed from HMRC. For instance, it's tough to know what expenses you can claim tax relief for. If your employer reimburses you for any of your costs, having them listed on your payslip's a big help. In the same way, you can keep track of any workplace benefits you're getting, from health insurance to season ticket loans.
If you've got questions or concerns about what's in your payslip, give RIFT a shout. A quick call or email can straighten everything out, and could well set you on the path to a hefty tax refund. Get in touch for more about how RIFT helps put your money back where it belongs - in your own pocket.