What is a payroll number? 

While not a legal requirement, a payroll number is a commonly used unique selection of digits and letters used for the identification of individual employees within the payroll process.  

The payroll number is unique and is assigned to a worker when they begin employment with your company. It is often referred to in software as the RTI ID. Whoever handles payroll for your business, whether internally or externally, this number can be used to provide the right information for a specific employee. Plus, it protects their sensitive information and helps prevent common payroll errors.  

The purpose of a payroll number  

Having unique payroll numbers for employees is best practice. Helping to prevent any issues with HMRC and errors with employee records. For most they offer a simple solution for managing multiple employees in one payroll system, without having to input specific names or facing the issue of duplication. A unique number assigned to every employee makes it easier for those completing payroll runs to identify individuals, track their payroll data, and ensure each employee is paid accurately and on time according to their salary and personal details.  

A payroll number will usually look like a string of numbers and letters combined, such as, “E5678” 

The RTI ID is reported to HMRC on the Full Payment Submission each pay period. It is important to ensure that the correct RTI ID is reported to HMRC consistently throughout the tax year to avoid the creation of assumed duplicate employments at the HMRC.  

Protecting your employee’s personal data  

Another key reason a business will choose to use payroll numbers or payroll IDs is to protect sensitive employee data.  

By linking their name, contact details, employment contract, salary, and other key information to an ID number, their data is hidden behind one string. This limits the risks of data breaches, and potential loss of information.  

Plus, if two employees have the same or similar name it reduces the chances of getting these confused.  

Where to find an employee’s payroll number 

Most payslips will display an employee’s payroll number at the top of the document. Usually next to the name of the employee.  

This helps to easily identify who the payslip belongs to.  

When completing a pay run, it is essential to check the payroll number is correct and aligns with the right employee details. If you have an employee who has two contracts with you, they need separate employee numbers for each employment contract, for example. 

Common errors to avoid  

When it comes to completing pay runs and paying your employees on time, it’s important to check for any mistakes, particularly when using payroll numbers. If you spot an issue with a payroll number, either this is incorrect or has a duplication, it must be resolved on time, otherwise you risk paying your employee incorrectly, late, or not at all.  

Plus, you should be mindful of an employee leaving and re-joining the company. In this situation, they will need to be assigned an entirely new payroll number based on their new employment with the business.  

Need help with your payroll?  

While payroll IDs can help to identify and navigate the complexities of employee payroll information, a lot of small businesses require additional support to get payroll right. From tackling complicated payroll processes to ensuring HMRC compliance, a payroll software may be the solution you’re looking for.  

With BrightHR payroll software, you can streamline and automate your payroll processes. Inputting your employee data, using their payroll numbers, to automatically generate payslips, send notifications to employees when payday arrives, and guarantee compliance with HMRC by reducing payroll errors.  

Join the thousands of businesses that trust BrightHR to build a gap between your HR software and payroll today. Book your free demo with our team to discover how it all works.  

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Tired of manually inputting data? No time for payroll runs?  

Leave it to the experts. With BrightHR’s managed payroll service, your payroll processes are in safe hands with our CIPP qualified team. Equipped with our online payroll software, our team will manage your payroll for you:  

• Processing and managing payroll tasks for you  

• Reporting to HMRC  

• Ensuring accurate and on-time payments  

We will handle it all for you, so you get back the time you need to spend running and growing your business. Register your interest today.