A–Z of payroll

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Understanding payroll terminology and establishing the correct tax and NIC treatment of payments

This note provides an alphabetical summary list of many of the common terms encountered by those operating a payroll. It also provides appropriate signposting, showing where additional guidance may be found

Additional published official guidance, includes HMRC’s CWG2 further guide to PAYE and National Insurance contributions, which summarises the department’s technical views of how most payments should be treated.

For additional reading on payroll matters, please refer to Simon’s Taxes, division E4.11.

For new or smaller employers the Employer obligations for those running a small payroll guidance note may also be of use.

Navigation tip: press ‘Ctrl + F’ to search for a particular term within the table.

	Payroll term or payment	Further details	References
A	Absences ― holiday pay	An employer has a statutory obligation to pay holiday pay, and the general expectation is that this should be made at the employee’s normal pay rate. The statutory minimum in the UK is 5.6 weeks holiday pay per year, including bank holidays (pro-rated

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A–Z of payroll

A–Z of payroll