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Understanding Payslip – Everything You Need to Know


Payslips are one of the most important documents for employees, providing essential information about their earnings, taxes, and deductions. It’s a document that shows how much an employee is paid and any deductions made, such as tax, pension contributions, and other benefits. In this article, we’ll take a closer look at p60, what they contain, and why they’re so important.

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What is a Payslip?

A payslip is a document that an employer provides to their employees, usually at the end of each pay period. It details the employee’s gross pay, any deductions made, and the net amount received. It serves as a record of the employee’s earnings, and it’s used for tax purposes and to show proof of income.

What Does a Payslip Contain?

A typical payslip contains the following information:

  1. Employee Information – The employee’s name, address, and identification number.
  2. Pay Period – The date range for which the employee is being paid.
  3. Gross Pay – The total amount an employee earned before any deductions.
  4. Deductions – Any taxes, pension contributions, or other benefits taken out of an employee’s pay.
  5. Net Pay – The amount an employee receives after all deductions are made.
  6. Year-to-Date Information – A summary of an employee’s earnings, deductions, and taxes paid for the current year.


Why is a Payslip Important?

Payslips are important for several reasons, including:

  1. Proof of Income – p60 are used to show proof of income, which may be required when applying for a loan, credit card, or mortgage.
  2. Tax Purposes – p60 provide information needed to complete tax returns and ensure taxes are paid correctly.
  3. Understanding Earnings – replacement payslips help employees understand their earnings and deductions, which can help them make informed financial decisions.
  4. Disputes – p60 can help resolve disputes between employers and employees over pay, taxes, or benefits.

Frequently Asked Questions:

Q: How often do employees receive payslips?

A: Employers are required by law to provide employees with p60 at least once a month.

Q: What if there’s an error on my replacement payslip?

A: If there’s an error on your p60, you should bring it to your employer’s attention immediately. They should correct the mistake and provide you with a corrected p60.

Q: What if I lose my p60?

A: Employers are required to keep a record of p60, so you can ask your employer for a copy if you lose your original replacement p45.


Payslips are essential documents for employees, providing vital information about their earnings and deductions. They serve as proof of income, help with tax returns, and ensure that employees understand their earnings and benefits. Employers are required by law to provide p60 and p45, and it’s essential that employees keep them safe for future reference. By understanding what a p60 is, what it contains, and why it’s important, employees can take control of their finances and make informed decisions about their future.