Preparing for payday: How payroll and HR can improve employee net pay experience

January 20, 2026

Drew Maginn

For most employees, payday comes and goes with little thought given to what ends up in their bank account. This passive approach is why payroll transparency and net pay experience for employees is so critical. Without identifying potential gaps and making net pay improvements via payroll and human resources collaboration, you likely won’t be aware of issues until some disgruntled employees suddenly question why their take-home pay is different than expected.

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Engaging the disengaged: Improving employee net pay through payroll practices

According to a recent study from H&R Block Canada, only 13 per cent of Canadians who receive a paycheque say they pay attention to the details to ensure deductions such as tax, insurance and pension contributions are correct. While some employers may view this as a sign of employee trust, this lack of engagement can mean it takes weeks, or even months, to identify errors in take-home pay. So even though most employees aren’t reviewing their net pay in detail, payroll and human resources must still ensure their practices are sound. This includes the below.

Ensuring accurate and timely payments: It can be easy to get complacent when your work isn’t being monitored closely, but that doesn’t mean accurate, on-time payments aren’t expected. Employees may trust that their take-home pay is accurate, but errors or delays can easily change that opinion. This means monitoring all activities that can impact net pay, such as filing mandatory remittances (e.g., Canada Pension Plan, Employment Insurance) and receiving employee time sheets on time.
Maintaining employee records in real time: For payroll and human resources departments to maintain their credibility, there need to be strong systems in place to maintain employee records. This includes ensuring both departments remain accountable to process-related changes like making updates to banking information, as well as position-related changes like adjusting net pay to reflect a promotion or change in working hours.

Communicating any and all changes: With employees not necessarily checking their pay statements regularly, it’s always better to overcommunicate any changes to avoid any surprises. That includes clarifying new deductions, like the second CPP contribution (CPP2) that took effect in 2024, or increases in net pay at year-end once an employee’s maximum CPP and EI contributions have been reached.

” According to a recent study from H&R Block Canada, only 13 per cent of Canadians who receive a paycheque say they pay attention to the details to ensure deductions such as tax, insurance and pension contributions are correct. ”

Creating an ongoing dialogue: Steps to improve employee take-home pay communication via payroll and human resources

When it comes to take-home pay, employees may be hesitant or uncomfortable bringing forward their questions or concerns. In fact, in the same study from H&R Block Canada, it was reported that only 12 per cent of Canadians know how much tax should be deducted from their pay because they’re unsure what the accurate amounts and deductions should be. Beyond communicating changes to employee net pay throughout the year, payroll and human resources departments can enhance their communications by the following.

Using data to gauge employee engagement: While providing employees with access to online portals to access pay statements is common, employees actually logging into these portals is not. Apart from downloading their T4 slip every January or February, most employees rarely, if ever, access these records. If you notice this trend in employee access, you can assume that engagement is likely low and more frequent communication may be required.

Building net pay education into your orientation and training processes: With the knowledge that most employees aren’t aware of deductions and other factors connected to their net pay, it’s best to offer information proactively. For new employees, orientation is a great time to explain deductions and walk through a sample pay statement so they know how to read it. For current employees, sharing this information during annual training or other connection points might be helpful as well.
Identifying key contacts and documenting questions: While many employees are provided with documentation about their pay, it can be incredibly valuable to identify specific members of payroll and human resources teams to serve as an initial point of contact. As long as these individuals are informed and available to answer questions, offering a human interaction can improve relationships and allow you to document recurring questions to integrate into future communications for the benefit of all employees.

Why it matters: Measuring the impact of net pay improvements on employee engagement

While many payroll and human resources departments simply process payroll and move on to their next task, never underestimate how important your role is to the health and well-being of employees. For employees living paycheque to paycheque or those aligning bill payments to paydays, an unexpected retroactive adjustment that decreases their take-home pay or a delay of even a day or two can cause significant stress and anxiety. When it comes to receiving their net pay, employees appreciate predictability, as any sudden change to their financial situation may have an unwelcome impact on their lives, as well as their job performance and satisfaction.

While rarely top of mind, the value in creating a positive net pay experience for your employees should never be underestimated. After all, an ill-timed error or lack of communication can quickly impact an employee’s trust in your departments. By maintaining sound practices and educating employees about their net pay, you can ensure that there are no unwelcome surprises when your next payday rolls around.

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