Payroll numbers help employers manage their employees. Although businesses of all sizes assign payroll numbers to staff members, they’re particularly useful for larger-scale companies.
Payroll numbers are important for numerous reasons, like helping ensure companies don’t breach employee data security.
Although most of us are familiar with payroll numbers, we understand that some individuals might not know what they’re useful for, or where to find them. Read on to learn more about payroll numbers and where to find them.
What is a Payroll Number?
A payroll number is a unique sequence of numbers, typically consisting of three to eight characters using a combination of letters and numbers, which is given to employees by their employer. Payroll numbers help companies link personal data directly to each employee.
You’re probably thinking, what does a payroll number look like? Well, let us give you some examples.
- A numeric payroll number could look like this – 012345
- An alpha-numeric payroll number could look like this – A1324
It’s not a legal requirement for companies to assign payroll numbers to their staff, although many companies in the UK do. As mentioned, it’s helpful for companies to have a payroll number assigned to each employee.
Payroll numbers are linked to personal data connected to each unique sequence. Usually, information about employees is stored across different databases within a company. However, this can feel quite unorganised to manage – but this is where payroll numbers step in to help.
The bottom line is that, although not a requirement, payroll numbers help many companies in the UK manage sensitive data belonging to each employee. They ensure the right information is linked to the correct individual. This information should not get mixed up.
How is a Payroll Number Created?
Payroll numbers are created by either your internal team or through the payroll software you use.
If you have an in-house payroll team, you can create your own payroll numbers for each employee, but if you use payroll software, payroll numbers will be generated automatically.
Why are Payroll Numbers Important?
Payroll numbers are important for many reasons, helping to streamline the process of finding information about employees, which reduces the risk of breaching data regulations.
Protecting employee data is essential – if there are several employees with the same name, there’s a likely chance that private information could be sent to the wrong person. It’s important that even when employees have similar names, data should still not cross over.
As well as simplifying the process of finding key information, payroll numbers are important for employers for a few other reasons:
- Protecting important personal data
- Paying staff their wages
- Ensuring employees are paid correctly
- Helping deduct employee taxes
- Allowing for efficient tracking of payments
- Maintaining payroll records
Do Payroll Numbers Protect Employee Data?
Yes, payroll numbers protect employee data. As discussed, assigning payroll numbers to each employee helps protect employee data, and allows companies to keep employee data both organised and private. Assigning payroll numbers is most helpful, especially for larger companies with a lot of employees.
How to Find Your Payroll ID
How do you find a payroll number? Payroll numbers are typically found at the top of a payslip, near your name and other key details – but they can also be found at the bottom.
It’s relatively easy to find your payroll number, but we understand that not everyone will know where to look, or might not have seen what a payroll number looks like before.
Payslips are important documents stating how much you’re getting paid, and how much tax (including National Insurance contributions) has been deducted.
How Do I Find My Payroll Number Without a Payslip?
If you can’t find your payroll number using a payslip, there are a few alternative ways to find it:
- Speak with your employer and ask them to show you
- Contact your company’s HR department or login to your online HR portal (if you have one)
- Check key documents (such as your P45 or P60)
Is a Payroll the Same as a PAYE Reference Number?
No, a PAYE reference number is not the same as a payroll number. Although both PAYE (pay-as-you-earn) and payroll numbers are important sequences of numbers used in business, they are both completely different.
When a business registers to use PAYE, each employee will be issued a PAYE reference number – this isn’t to be confused with a payroll number.
A key factor in the differences between PAYE reference numbers and payroll is how they look. A PAYE reference number is typically split into two parts, consisting of an HMRC office number and a unique code.
For example, your PAYE reference number could look something like this – 333/A12345. 333 represents the HMRC office number, and A12345 is the reference number assigned specifically to your company.
Let’s take a look at some of the key differences.
| Payroll Number | PAYE Reference Number |
|---|---|
| Issued by employer | Issued by HMRC |
| Identifies an employee | Identifies an employer |
| Found on payslips | Found on letters from HMRC and tax forms |
| Used to identify employee records and streamline payrolls | Allows HMRC to identify a company and manage PAYE taxes |
| Combinations of letters and numbers | Consists of a three-digit HMRC office number and a unique reference number for your business |
All employers must ensure HMRC have everything they need when it comes to payroll. At DH Business Support, we take care of everything payroll-related on your behalf. Our trusted team are both experienced and knowledgeable.
We have a fully digital payroll experience which includes a portal and app for your mobile device that can be used by both employers and employees. Through our portal, you can access all the key information regarding payroll and pension.
Additionally, through our portal, you can manage employee holiday calendars and absences – something that can be difficult to keep track of.
As well as expert accountancy, our professional payroll services are favoured by companies across the country. We can support you and your employees directly, understanding how time-consuming it can be to handle issues with payroll.
It’s important that your employees think highly of where they work – and it’s our goal is to ensure they do so by making sure there’s a streamlined and efficient payroll process in place. Our friendly and efficient advice, guidance, and support are second to none. We want the best for your company.
If you’d like to talk further about our payroll service, we encourage you to get in touch with us today. We’re here to answer any questions that you may have, and we look forward to speaking with you soon!