What payroll information do I need to give a new employee?
This guide explains the payroll information employers must give new employees in the UK covering pay, deductions, tax codes, pensions, payslips and onboarding requirements.
Hiring a new employee is always an exciting step for any business but it also brings legal and administrative responsibilities that must be handled correctly. One of the most important tasks is giving your new employee the right payroll information so they understand how they will be paid, how deductions work, what documents they need to provide and what they can expect from you going forward. In my opinion good payroll communication at the start prevents confusion, errors and disputes later in the employment relationship.
This guide explains exactly what payroll information you need to give a new employee in the UK. I cover pay details, payslips, tax information, pension obligations, statutory deductions, onboarding forms and the legal requirements you must follow. My aim is to give you a practical and complete checklist so that every new starter knows exactly how their pay will be handled from day one.
Why payroll information matters for new employees
Starting a new job is stressful for many people. They want to know:
When they will be paid
How much they will be paid
How their tax code works
What deductions will appear
How holidays and sick pay are calculated
Whether they are in a pension scheme
If you provide this information clearly at the beginning you set the right expectations. In my opinion this not only builds trust but also reduces the number of payroll queries you receive later.
The payroll information you must give a new employee
The list below includes all legally required information plus the practical details employees expect.
1. Written statement of employment particulars (legal requirement)
Employers must provide a written statement of employment particulars on or before the employee’s first day. This is a legal requirement in the UK.
Payroll-related items this statement must include:
Rate of pay
Method of payment
Pay frequency
Hours of work
Holiday entitlement
Sick pay entitlement
Notice periods
Name of the employer and employee
Job title and start date
Although this is not a payslip itself it forms the basis of payroll expectations.
In my opinion this document should be written clearly and without jargon because employees refer to it often.
2. Pay frequency and pay dates
Employees must be told:
How often they are paid (weekly, monthly or fortnightly)
The exact pay date each period
Whether pay dates change around bank holidays
This prevents confusion especially for employees used to different pay cycles.
Why this matters
A new employee may have financial commitments like rent or childcare. Clear pay dates help them plan.
3. Rate of pay and how it is calculated
You must explain:
Hourly rate or salary
Overtime rates
Enhanced rates for nights or weekends
Commission structure
Bonuses and when they are paid
If your employee is hourly paid they must understand how their hours will be recorded and approved.
In my opinion people accept their pay structure more easily when they understand exactly how it is calculated.
4. Payslip information (legal requirement)
You must provide a payslip for every payment of wages. You should explain:
Where they will receive payslips (portal, email or paper)
What information will appear
How to raise issues
A payslip must show:
Gross pay
Net pay
Tax deducted
National Insurance
Pension deductions
Student loan repayments
Other deductions like court orders
Hours worked (for hourly employees)
Pay period dates
New employees should know that payslips arrive before or on payday.
5. Tax code information
You should explain:
What a tax code is
How it affects their take-home pay
That HMRC sets the tax code and not the employer
Why tax codes may change during employment
Starter documents
You should tell your new employee to provide either:
Their P45 from a previous employer
orA completed starter checklist
This ensures the correct tax code is used. In my opinion this is the most important payroll document a new employee provides because it prevents emergency tax.
6. Information about statutory deductions
Employees should understand all deductions that could appear on their payslips, including:
Income tax
Explained through PAYE.
National Insurance
Explain their NI category if relevant such as under 21 or apprentice categories.
Student loan repayments
Tell them deductions apply only if their income is above the threshold and only if they have a loan.
Postgraduate loan
Explain that this is separate from the main student loan.
Court orders or attachment orders
Employees should know that any legal orders will be deducted if HMRC or a court notifies you.
In my opinion explaining deductions early avoids unpleasant surprises on payslip day.
7. Pension enrolment information (legal requirement)
Under auto enrolment rules you must give new employees:
The name of your pension scheme
How much they will contribute
How much the employer contributes
When they will be enrolled
How to opt out if they choose to
How postponement works if you are using it
Important
You must provide pension information within six weeks of enrolling or postponing.
In my opinion pensions cause the most confusion for new starters so clear explanation is essential.
8. Holiday pay and holiday accrual
Payroll needs accurate holiday records so employees must understand:
Their holiday entitlement
How to request leave
How holiday accrues (especially on variable hours contracts)
How holiday pay is calculated
Whether holiday pay is included or rolled up
Whether bank holidays are paid or unpaid
Accurate holiday information prevents payroll disputes later.
9. Sick pay and absence rules
Employees should know:
Whether they qualify for statutory sick pay
How to report sickness
Any required evidence
When sick pay starts
Whether the company offers enhanced sick pay
Sick pay affects payroll so new starters should know the rules from day one.
10. Explanation of variable pay rules
If the employee works shifts, overtime or irregular hours you should explain:
How timesheets work
How overtime is authorised
Deadlines for submitting hours
What happens if timesheets are late
How deductions are handled if hours are incorrect
In my opinion clear timekeeping rules prevent payroll delays and complaints.
11. Information about benefits in kind
If your company gives benefits such as:
Company car
Medical insurance
Gym membership
Staff loans
Accommodation
Subsidised meals
You must explain:
Whether the benefit is taxable
How the tax is collected (through payroll or P11D)
How deductions will appear
New employees often confuse taxable benefits with cash deductions so clarity helps.
12. Bank payment details and deadlines
Employees need to know:
When payroll is finalised
When hours must be submitted
When bank details must be provided
What happens if they change bank accounts
Incorrect bank details cause missed payments so guidance is vital.
13. Real Time Information (RTI) reporting
You do not need to explain RTI in detail but letting employees know that every payment is reported to HMRC instantly can help them understand why their tax adjusts automatically if their pay changes.
14. Who to contact about payroll queries
Every new employee should be given a contact for payroll questions. This could be:
HR
Payroll department
Finance
Line manager
Explain:
Contact hours
Preferred communication method
Expected response time
This prevents employees asking managers who cannot help.
Payroll information you must collect from the employee
Although the question focuses on what you must give employees it is equally important to know what you need to collect from them to run payroll legally.
You must collect:
Right to work documentation
Starter checklist
P45 where applicable
Bank details
Emergency contact
Student loan status
Details of second jobs
Address and National Insurance number
In my opinion onboarding is quickest when this information is collected digitally rather than on paper.
Why good payroll communication prevents problems later
I have seen many payroll disputes where the actual issue was a misunderstanding caused by poor onboarding. When employees understand:
How pay is calculated
How deductions work
What documents they need to provide
Who to contact with queries
Payroll becomes predictable and stress free.
Common problems avoided through clear communication:
Emergency tax
Incorrect student loan deductions
Missed pension contributions
Payroll delays due to wrong bank details
Disputes about holiday entitlement
Confusion over overtime payments
In my opinion giving new employees clear payroll information is just as important as explaining their job duties.
Real world examples
Example 1: Missing P45
Jack did not give his employer a P45 and did not complete the starter checklist properly. He was placed on an emergency tax code and paid too much tax for two months. Clear onboarding instructions would have prevented it.
Example 2: Wrong student loan plan
Alice forgot to declare her student loan plan type. Payroll guessed and applied the wrong one. This caused overdeductions which had to be refunded.
Example 3: No explanation of overtime
A café hired weekend staff but never explained the overtime approval rules. Some shifts were unpaid or delayed because timesheets were not submitted correctly. New payroll information solved future problems.
Example 4: Pension confusion
A retail worker was automatically enrolled in the pension scheme without understanding it. They were upset when their take home pay dropped. Better onboarding would have prevented the surprise.
In my opinion: the essential payroll information new employees need
If I had to summarise the most important items every new employee should receive they would be:
Detailed pay and deduction information.
Clear pay dates and frequency.
Accurate explanation of tax codes.
Pension enrolment details.
Holiday and sick pay calculations.
Access to payroll contacts.
Payslip expectations and how to read them.
New employees feel more confident when they understand exactly how their pay will be handled.
Final thoughts
Giving new employees the right payroll information is not just a formality. It is a key part of good employment practice. When people know how they will be paid, what deductions to expect, how to provide the right information and who to contact with questions they are far less likely to experience problems or raise disputes.
In my opinion every employer should treat payroll communication as a core part of onboarding. Clear, accurate and timely information builds trust, reduces errors and ensures compliance with UK employment law. With the right processes in place your new starters will feel informed, supported and confident in their new role.