What is your payroll number? 

Your payroll number is very important. It is the number that your employer’s payroll department gives you to identify you as an individual earner. And although you may think that an easier way would be just to identify you by your name, your payroll number adds extra security to your wage slip. After all, there may be other staff members with similar names working for the same company and you could find yourself receiving somebody else’s wages by mistake. 

What is the importance of the payroll number in the payslip?

Your payroll number identifies you to the company you work for and ensures that you are paid the correct wages. Not all companies actually use payroll numbers and it is not a legal requirement to do so. But in most cases, this vital information is shown on your payslip along with the other important information about your wages. Your payroll number is usually placed next to your name at the head of your payslip and alongside the date. 

Is the PAYE reference the same as the payroll number?

The PAYE reference is not the same as the payroll number. PAYE or pay as you earn is a way of paying your income tax and national insurance contributions while you are earning. Your employer deducts these payments before paying you your wages, making it a hassle-free way for you to pay your tax and National Insurance. 

Your PAYE number relates to the company that you work for and provides a record that shows how much tax you paid while you were working for the company. 

 HMRC tells your employer how much tax you should be paying and issues a tax code. If you change jobs, your new employer should normally use the same PAYE reference as is shown on your P45. 

Your P45 is the form that you receive when you leave your job and it shows how much tax you have paid on your salary in the tax year. If you think you are paying too much tax you can check this out with HMRC. 

How do you identify it in the payslip?

There are many different numbers on your payslip and it can be confusing. Your payslip will show your National Insurance number. This is composed of two letters followed by six figures and finishes with a single letter. Your National Insurance number will look something like this: AB 12 34 56 C. This number remains with you for life. 

The PAYE reference is provided to your employer by HMRC. Not all businesses register to use PAYE but if they do, it enables the company to seamlessly manage employees’ tax payments. The PAYE reference number generally looks something like this: 576/ HK56200.

Your payslip will show your tax code – the type of tax you are paying. It will also show the category of National Insurance you are paying. 

Your payroll number is created by your employer so the type of number will vary depending on their system. It may look something like; 12345. In general, your payroll number is placed alongside your name at the head of your payslip.