People Group Services Limited Company Number: 11570329

Payslip Accuracy & Validation Policy

1. Purpose

The purpose of this policy is to ensure that all payslips issued by People Group Services Ltd (“PGS”) are:

• Accurate
• Transparent
• Fully compliant with UK tax and employment legislation
• Aligned with reporting submitted to HM Revenue & Customs

This policy is critical to protecting workers, agencies, and end clients from financial discrepancies and compliance risk.

2. Scope

This policy applies to:

• All payroll processed by PGS
• All workers paid via PGS payroll services
• All personnel involved in payroll calculation, processing, and approval

3. Policy Statement

PGS operates a zero-error tolerance approach to payslip production.

All payslips must:

• Reflect correct gross-to-net calculations
• Accurately apply tax, National Insurance, and statutory deductions
• Clearly itemise all pay elements and deductions
• Match Real Time Information (RTI) submissions

Any discrepancy, regardless of value, must be investigated and resolved.

4. Regulatory Compliance

Payslips issued by PGS comply with:

• Employment Rights Act 1996 (right to itemised payslips)
• PAYE Regulations and RTI requirements
• National Minimum Wage (NMW) legislation
• Pension auto-enrolment obligations

5. Payslip Content Requirements

Each payslip must clearly display:

Earnings

• Gross pay
• Basic pay and/or contract rate
• Overtime, bonuses, or commissions (where applicable)

Deductions

• PAYE tax
• Employee National Insurance Contributions
• Pension contributions
• Student loan repayments (if applicable)
• Any lawful voluntary deductions

Employer Costs (Where Applicable for Transparency)

• Employer NIC
• Apprenticeship levy
• PGS margin (where disclosed under transparency model)

Net Pay

• Final amount payable to the worker
• Payment method and date

6. Validation Controls

PGS applies a multi-layer validation framework:

System Validation

• Payroll software applies:
  • HMRC tax codes
  • Current tax bands and thresholds
  • National Insurance category rules

Logical Validation

Automated checks confirm:

• Gross-to-net accuracy
• Threshold compliance
• Deduction limits (e.g. NMW protection)

Pre-Release Verification

Prior to issuing payslips:

• Payroll summaries are reviewed
• Exception reports are generated
• Any anomalies are investigated

Post-Processing Reconciliation

Payslips are cross-checked against:

• RTI submissions (FPS/EPS)
• HMRC liability reports
• Bank payment files

7. Holiday Pay Accuracy

PGS ensures that:

• Holiday pay is calculated correctly in line with statutory requirements
• Accrual balances are maintained and visible
• Rolled-up holiday pay (where applicable) is clearly identified

8. Error Handling & Correction

Identification

Errors may be identified through:

• Internal validation checks
• Worker queries
• Agency or MSP review

Resolution Process

Where an error is identified:

• Immediate investigation is initiated
• Root cause is determined
• Corrected payslip is issued

Financial Adjustment

• Underpayments are corrected promptly
• Overpayments are handled in accordance with PGS Overpayment Policy

Communication

Workers are:

• Notified of the issue
• Provided with a clear explanation
• Given revised documentation where required

9. Transparency & Access

PGS ensures that:

• Workers have access to payslips in a timely manner
• Payslips are clear, understandable, and fully itemised
• Agencies and MSPs can access relevant reporting (subject to data protection controls)

10. Audit Trail & Record Keeping

PGS maintains full records of:

• Payslips issued
• Payroll calculations
• Adjustments and corrections
• Supporting documentation

All records are:

• Securely stored
• Retained in accordance with statutory requirements
• Available for audit upon request

11. Governance & Responsibilities

Payroll Team

• Responsible for accurate calculation and processing

Compliance Team

• Responsible for monitoring adherence to this policy
• Conducting audits and reviews

Directors

• Responsible for overall accountability and oversight

12. Breach Of Policy

Any failure to adhere to this policy may result in:

• Internal disciplinary action
• Escalation to senior management
• Regulatory consequences where applicable

13. Continuous Improvement

PGS commits to:

• Regular review of payroll systems and controls
• Updating processes in line with legislative changes
• Enhancing automation and validation technologies

Conclusion

This Payslip Accuracy & Validation Policy ensures that People Group Services Ltd:

• Delivers precise and compliant payroll outcomes
• Protects workers from financial errors
• Provides full transparency to agencies and MSPs
• Maintains alignment with HMRC reporting

It reinforces PGS’s position as a zero-risk payroll provider and supports our commitment to:

“Compliance Without Compromise.”

Declaration

This Policy is approved by the Board of Directors of: People Group Services Limited Company Number: 11570329

Last updated: 24th March 2026