Whoever is in charge should have access to a full record of old and current payroll numbers, so they can double check that no duplicate payroll numbers are assigned by accident. However payroll numbers are created, it’s a good idea to have the same department or person stay in charge of the task, if possible, to reduce the chance of mistakes.
There are differences in how different software programs handle payroll numbers though, and some systems may not be able to create them. The numbers can be created by the HR department (or, in smaller companies, the person in charge of the payroll), provided by an outsourcing service according to their own system, or generated automatically by payroll software.
It’s up to each company to choose how to go about creating payroll numbers. Likewise, if an employee’s name changes during their employment (because they got married, for example), using a payroll number helps ensure continuity in record keeping. While it’s not compulsory to assign payroll numbers to employees, the larger the company, the more it makes sense to do it.Īs a secondary confirmation of identity, a payroll number reduces the risk of records getting mixed up when a company employs two or more people with identical or similar names. This allows companies to track employee activity efficiently by using a single number, reducing the need to include excess and potentially confidential data about their staff across multiple databases. What is the purpose of a payroll number?Ī payroll number is a unique identifier that can be assigned to an employee working at a specific company.Īll relevant information about a particular employee-including their title, name and contact details, as well as their role, working hours, salary and benefits-can be linked to their payroll number.
This article discusses payroll numbers, how they are created and used, and how to avoid mistakes when operating PAYE as a UK employer. How can a payroll number help your business to function?īeing an employer means juggling a lot of responsibilities, including tracking employee activity and keeping accurate records.Īssigning a payroll number to each employee can help to make this easier.
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