Payroll Terminology

Written by admin

12 Apr 2013

Need our help?

Do you need expert advice on all things payroll or HR

You can receive monthly updates of more articles like this ...

Sign up to our newsletter, enter your email...

By entering your email address and clicking request you agree to sign up to our mailing list and for one of our staff members to contact you regarding HR solutions.

Excellent rating
Based on 35 reviews

Absolutely amazing, As a Chef that starting out on her first catering business, My knowledge is in the kitchen, not on the admin side! So I had gotten myself into a little pickle with paying an employee, Due to not understanding, And Jonathan Was able to instantly help me get to the problem and solve it all Very efficiently and professionally For now, I have just use their service as a one off, As I have realised myself as a sole trader Have not got enough customers currently To have constant staff, But when I do, I will absolutely be returning to You guys! Thanks again Charlotte Steam & Stone

Charlotte Walton

96 days ago

We have been using Crystal HR & Payroll Ltd since 2017 and it's been one of the best operational decisions we’ve made. What used to be a time-consuming process has become completely seamless, stress-free and has also freed up valuable internal resources. We don’t hesitate to recommend them to our contacts who may be looking to outsource their payroll services, to a company that will provide them with expertise, reliability and peace of mind.

Rahela Hussain

135 days ago

I’ve had a really positive experience working with Crystal as a payroll partner. While we’ve worked together on shared clients, the experience has been seamless from a client perspective, with payroll handled accurately, professionally and with minimal input needed, which is exactly what you want. As an HR consultant, it’s incredibly valuable to have a trusted payroll provider I can confidently recommend. Knowing that my clients will be well looked after, and that payroll will be managed reliably and compliantly, gives me real peace of mind. I wouldn’t hesitate to refer Crystal to other businesses looking for a dependable payroll partner.

Laura Fox

166 days ago

We recently engaged Crystal HR & Payroll company following concerns about the accuracy and reliability of our previous outsourced provider, and the difference has been nothing short of exceptional. Crystal conducted a comprehensive payroll and pension audit, giving us much-needed clarity and reassurance. Their thorough review uncovered a number of issues, which had previously been managed incorrectly. What truly stood out was Crystal's diligence and commitment. They worked incredibly hard to complete the audit as quickly as possible without compromising on detail or accuracy. Throughout the process, their communication was clear, concise, and easy to follow, ensuring we fully understood both the issues identified and the steps required to resolve them. Thanks to Crystal's expertise and professionalism, we now have complete confidence that our payroll and pensions are accurate and fully compliant. It’s such a huge relief to know we are now in such capable hands, and we wouldn’t hesitate to recommend their services.

Lucy Mather

167 days ago

Crystal have been providing us their payroll service for 15 years. I would recommend them if reliability, ease of use and good customer service is important to you. The staff at Crystal are incredibly friendly yet professional and are patient and solution-focused when I've needed further help.

Home-Start Reading

202 days ago

Est. Reading time: 2 minutes

When talking to clients, we are often asked by clients who have read something in the news or been sent a letter by HMRC, or their staff have raised a query, what something means, how does it relate to them and what if anything do they need to do.

As a company we believe in communicating at a level our clients can understand. There is little point in producing reports and talking to our clients in such a way they are left thinking, "what were they talking about?"

Below is a list of common payroll terminology used in or to refer to payroll:

Payroll - A list of all employees receiving, wages or benefits with the amounts due to be paid to each employee
Gross Pay - The total amount of pay due to employees before deductions such as PAYE, National Insurance, Pensions, Give as you Earn
National Insurance - Contributions made to the Government to help you build up entitlement to state benefits such as State Pension
PAYE - Pay as you Earn - A tax you pay on the amount you earn and is paid over to HMRC, subject to any allowances
Tax Code - Represents an amount of (tax) free pay someone is allowed to earn before income tax is deducted
Deductions - Amounts taken off the gross pay such as National Insurance, PAYE, Student Loans
Net Pay - The amount received after deductions have been taken from the Gross pay
SMP - Statutory Maternity Pay - An amount of pay employees may be entitled to when taking time off to have a baby
OSPP - Ordinary Statutory Paternity Pay - An amount of pay to an employee if their partner adopts or has a baby
SSP - Statutory Sick Pay - An amount of pay an employee may be entitled to when taking time off for illness
SHL - Statutory Holiday Leave - An amount of pay all workers are entitled to when taking time off
P45 - A form used by employers to detail how much income tax has been paid on employee's wages/salary. Issued to staff leaving an employers employment
P14 - This is an end of year summary of National Insurance, PAYE and statutory payments made in the yax year. This form must be submitted to HMRC
UTR Number - Unique Tax-Payer Reference - When a company record is first setup, the HMRC computer allocates a ten, (10), digit reference number. This number is used by the company for the duration of its existence. The same procedure applies to partnerships and individuals.