Should your growing business switch to electronic payslips and why?

In today’s digital economy, your growing business can’t afford to be weighed down by outdated processes. You may have digitised marketing and sales, but, if you are reading this, perhaps your payroll is stuck in the past, and traditional paper slips are still a considerable drain on resources.

Electronic payslips, or epayslips, are no longer the future, they are a fundamental tool for agile UK businesses today. It isn’t about saving trees, it’s about security, payroll compliance, employee experience, and major financial savings for your business.

In 2026, the UK’s taxation and contribution ecosystem, driven by HMRC, is digital by default. So, if your payroll management hasn’t kept pace, you are exposing your company to risk.

Are electronic payslips legal in the UK for 2026?

Certainly, but your implementation must be fully compliant. Digitalisation comes with important rules regarding both tax and data protection.

What are your digital obligations?

Your relationship with HMRC is already digital. The Real Time Information (RTI) system requires you to make a Full Payment Submission (FPS) detailing wages and deductions whenever you pay your staff.

Furthermore, the law, specifically the Employment Rights Act 1996, states that every employee has the right to an itemised written pay statement, as clearly outlined on the GOV.UK website. 

However, it does not say that this statement must be on paper. The key point is that payslip information is confidential, and, therefore, that each individual worker must be able to view it securely.

How does UK GDPR affect electronic payslips?

This is the fundamental criticality. A wage slip contains a worker’s most sensitive personal information, including their National Insurance number, tax code, bank details, and salary, and under UK GDPR is considered high-risk.

Because of this, emailing payslips as a PDF is no longer considered a safe solution, as it leaves a trail of unsecured copies of confidential personal information in multiple email systems.

The most sure and compliant way to issue electronic payslips is through a secure online platform, guaranteeing:

• Protected access control: with each individual only able to see their own documents, via a password-protected login.

• Encryption: ensuring information is encrypted, and protected from unauthorised viewing.

• Accessibility: from work, home or anyway else, with the ability to download or print payslips if they are needed, for example, for a bank account or loan application.

How can epayslips help your business grow?

Moving to epayslips is a strategic decision that directly impacts your bottom line and your people management.

How can epayslips save you time and money?

Paper costs add up: the material itself, ink, envelopes, and postage. But the biggest cost is staff hours.

Think of all those wasted hours your HR or finance team spends printing, folding, stuffing, and distributing physical payslips, not to mention handling requests for lost or historical statements.

This administrative drain happens every single run. With an electronic system, the process is instant. You run the payroll, and the statements are automatically published to the employee hub. And the large time and financial savings are equally immediate.

How do digital payslips help with recruitment and retention?

Your internal processes reflect your employer brand. A company still using physical slips in 2025 will seem outdated. An online payroll solution, as a key part of state-of-the-art HR management, shows you are a modern, reliable employer.

Providing staff with an app where they can check their wage information, request leave and submit expenses creates a seamless, professional experience. And this is all the more vital for businesses offering remote and flexible working methods.

How do epayslips empower employees?

Employees no longer need to contact HR and wait for someone to dig out old files when they need a copy of a statement. They have 24/7 self-service access to their entire history. This simple change guarantees them the instant availability of their own files and statements, reducing friction, and ensuring clarity.

How secure are electronic payslips compared to paper?

Physical payslips are a data breach waiting to happen. They can be left on printers, picked up by the wrong person, or lost in the post.

A well-protected online platform, by contrast, completely does away with this liability. You move from a high-risk, low-control system to a low-risk, high-control one. 

Modern payroll software services are built with bank-level protections. At PayFit, we outline how our robust security measures protect your records, including end-to-end encryption and strict controls. This is simply not possible with paper.

What should you look for in a digital payroll partner?

To make the step up from paper, you needn’t worry about relying on expensive payroll bureau services, or having to manage complex epayslip software. 

Growing businesses should rather look for an integrated payroll solution, in order to:

• Automate the whole process: from wage calculations to FPS submissions, and the issuing of the final electronic payslip.

• Integrate other HR functions and solutions: linking payroll with leave management, expense management, and staff records.

• Provide a employee portal: so that everyone can securely view their records.

• Scale with you: the solution must naturally grow together with your company.

• Offer expert support: with access to payroll experts, not just an IT support desk.

Switching from a physical system to an integrated, modern, automated software solution is a major step in modernising your finance and HR functions.