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The rise of the virtual payslip

Gone are the days when payroll was concerned only with pay, tax and National Insurance contributions. Now payroll departments are expected to manage pension contributions, Save as You Earn share option schemes, Give As You Earn charitable giving schemes; salary sacrifice and flexible benefits plans. Not to mention the complex compliance and HMRC demands placed upon them.

Did you know? 1 in 20 employees in the UK is paid using a Pegasus payroll system

Payslips in particular have always been a necessary evil. Not only do they take a significant amount of time to produce and issue to employees, they amass considerable print and postage costs. Not to mention the added worry of employee queries when payslips are not received, mislaid or a include discrepancies.

In an effort to address this administrative burden, e-payslips – whereby the printing, sorting and posting processes are all removed literally at the click of a button – have been the source of much discussion in the industry for the last few years. However, the concept of online payslips has remained a point of discussion rather than a reality. A number of organisations are reluctant to take on this new method due to security concerns, cultural barriers and a lack of robust solutions on the market.

A considerable number of Payroll Administrators have significantly changed the way payslips are managed within their business. Many have adopted a Payroll self-service, whereby employees can access personal information, including payslips, via a dedicated online portal.

Employees can have the peace of mind that they no longer need to worry about losing their payslip under a pile of work, accidently throwing it in the recycling bin or spending a whole afternoon routing through the loft and copious amounts of paperwork to dig out last years P60 to assist with a tax return. The process becomes quite simple. They can simply log on and download. While security concerns around e-payslips were once voiced, when evaluating the scenario of a payslip being left on a desk versus one being held in a file behind a password, it is easy to see why organisations are now embracing this new way of working.

As payroll professionals realise the cost and time advantages to converting, payroll administrators will see the continued rise of payroll self-service, e-payslips and e-P60s, highlighting that the ‘virtual’ payslip model is very much here to stay. Employees get convenience, choice and predictability and payroll departments get to cut their costs, reduce hassle and save time.

If you are currently running Opera 3 and would like more information on Pegasus e-mail payslips and P60s, or simply have a few questions, please contact us on 0345 456 0050.