BUSINESS MANAGEMENT
Simplify payroll with the Alliance payslip service
The Alliance payslip service helps early years providers manage payroll tasks, ensuring accuracy and full compliance with changing legislation
Managing payroll for a mix of term-time, casual and annualised employees is difficult to get right. Tax rules change often, and standard calculations can easily lead to mistakes and legal issues.
To handle contract variations accurately and reduce the administrative burden on early years providers, the Alliance payslip service manages the entire payroll process, including pension contributions, holiday pay, statutory maternity and parental pay, sick pay and much more, giving you confidence that every detail is handled correctly.
Keeping you compliant
As part of the payslip service, the Alliance updates your payroll automatically as tax laws change. We are actively supporting settings through the most recent 2026-27 updates, which include:
- Statutory sick pay (SSP): Paid from day one of sickness absence, with the lower earnings limit removed.
- National minimum wage: Updated rates effective from April 2026.
- Statutory parental pay: New payment rates and employer reclaim percentages.
- Student loans: Updated repayment thresholds and the introduction of Plan 5.
- Employment Allowance: Remaining at £10,500.
Staying up to date with yearly changes can be challenging. To support you, we provide regular newsletters highlighting key updates, helping you to plan budgets, review contracts and understand new rules for your setting.
Looking ahead, we will also help you prepare for the mandatory payrolling of most benefits in kind, starting in the 2027-28 tax year.
Understanding the challenges of early years payroll
Early years payroll presents unique challenges that many standard payroll providers are unfamiliar with.
One of the most common arrangements is annualised pay for term-time only employees. Those on annualised pay work during school terms but receive twelve equal monthly payments throughout the year, including holiday pay. While this approach provides consistent monthly income for your team members, calculating it accurately requires careful management.
Our payslip service manages the entire annualised pay process, ensuring calculations are accurate and providing guidance on communicating pay arrangements clearly to staff.
Holiday pay made simple
Calculating holiday pay can also be complicated, particularly if employees are term-time, casual workers or work irregular hours. Different contracts are subject to different requirements, making it essential to apply the correct calculation method.
By ensuring the correct approach is applied in every situation, we help reduce risk, improve accuracy and give employers peace of mind.
Let us take the stress out of payroll
Whether you're managing a pre-school, nursery, or
Did you know…
Alliance members benefit from an exclusive 20% discount the Alliance payslip service? For more information, visit payslipservice@eyalliance.org.uk.
other early years setting, the Alliance payslip service provides an affordable, specialist solution tailored to the needs of the sector. With expert support, accurate calculations and up-to-date legislative knowledge, you can spend less time worrying about payroll and more time focusing on delivering high-quality care and education.
Under 5 magazine
The magazine of the Early Years Alliance