The benefits of electronic payslips

By Sam Thomas | 8th June 2018 | 4 min read

With GDPR in force and affecting every part of how personal data is processed, we’re taking another look at how electronic payslips can help your business, whilst providing a GDPR-compliant way of handling your employee’s pay information.

Save money

When the Chartered Institute of Payroll Professional (CIPP) compared payroll statistics between paper and electronic payslips in a survey, they reported that 83.3% of respondents had reduced costs by switching to e-payslips. Impressively, the savings they declared ranged from £1,200 to £6,000 per year.

Improved delivery

Unlike paper payslips, which return to the HR or finance office if the employee is absent and can’t collect their payslip, e-payslips are emailed directly to the employee.

This saves on the cost of postage, and also on the amount of time needed to deliver payslips to each employee if they’re handed out in the office.

Environmentally friendly

By removing paper payslips from circulation, you’re reducing your carbon footprint and helping the environment.

Most businesses discourage the printing emails unless it is absolutely necessary, and yet the printing and distribution of monthly payslips is just as much a waste of resources – more so amongst larger businesses.

Reduced storage space

As a business, you won’t have to store undelivered or uncollected payslips. This is potentially even more useful for employees, as they’ll have access to historical payslips without having to sort through files or ask you for copies.

This is ideal for situations where employees need proof of income, for example when they’re applying for a mortgage. As an added bonus, pay information can be seen via a computer, tablet or phone for 24/7 and easy access.

You can add communications

When you’re sending e-payslips, you can include additional pay-related communications such as auto enrolment reminders to ensure all relevant information.

Auto enrolment is a complex area of Payroll, so if you’re struggling with any aspect of it, we recommend that you take a look at the industry leading AE Suite. This is designed to keep you compliant and on top of AE without any hard work involved.

Improved security

IRIS Payroll software uses HMRC-accredited ‘https’ encryption, which means that any e-payslips are uploaded and sent using a secure hosting centre.

Under this system, employees use a unique ID and password to access their payslips. This means they have added security and extra privacy for their pay information, as their payslips are never left lying around or misplaced.

Are electronic payslips HMRC compliant?

One common question is whether you’re legally allowed to send out electronic payslips.

The Employment Rights Act 1996 states that each employee “has the right to be given by his employer, at or before the time at which any payment of wages or salary is made to him, a written itemized pay statement.” It doesn’t state that this needs to be printed, so electronic is fully permissible so long as it’s clear.

Indeed, HMRC readily accept e-payslips and, since 2011, also allow P60s to be issued electronically too. As electronic files are accepted by HMRC, they are also accepted by banks and other financial institutions – so there’s no issue for employees either.

To ensure your e-payslips are compliant with the Employment Rights Act and other laws, make sure they are delivered in an easily readable format (such as a PDF) before your employee is paid.

Why choose IRIS OpenPayslips?

IRIS have developed OpenPayslips, which is a secure, online electronic payslip solution that offers benefits to both you and your employees and can be used to distribute P60s and pension communications.

Benefits to your business:

  • Reduces costs, saving on postage, printing and processing
  • Quick and easy to setup with no software to install
  • Reduces your carbon footprint - this is an environmentally friendly solution
  • Employees can access their payslips anytime from anywhere with internet access
  • Increased pay data security, complies to industry standard SSL authentication and UK data protection rules

Benefits to your employees:

  • 24/7 access to current and historic pay details and payslips in one place
  • Increased speed of delivery of pay information
  • Employees can print and reprint their payslips whenever they need them
  • Gives your employees a greener way to receive their pay details allowing them to contribute to environmental policies
  • Smartphone and mobile device options for payslips available

Further to this, we host IRIS OpenPayslips on the Microsoft Azure platform with industry standard SSL authentication, so our solution fully complies with UK data protection guidelines.

To learn more about IRIS OpenPayslips, visit: