diff --git a/src/engine/specification.md b/src/engine/specification.md
index 3cd6d6ee..ed0011c3 100644
--- a/src/engine/specification.md
+++ b/src/engine/specification.md
@@ -197,7 +197,7 @@ This structure contains the attributes required to initiate a payload build proc
 3. Client software **MUST** return `SYNCING` status if the payload identified by either the `headBlockHash` or the `finalizedBlockHash` is unknown or if the sync process is in progress. In the event that either the `headBlockHash` or the `finalizedBlockHash` is unknown, the client software **SHOULD** initiate the sync process.
 
 4. Client software **MUST** begin a payload build process building on top of `headBlockHash` if `payloadAttributes` is not `null` and the client is not `SYNCING`. The build process is specified as:
-  * The payload build process **MUST** be identifid via `payloadId` where `payloadId` is defined as the first `8` bytes of the `sha256` hash of concatenation of `headBlockHash`, `payloadAttributes.timestamp`, `payloadAttributes.random`, and `payloadAttributes.feeRecipient` where `payloadAttributes.timestamp` is encoded as big-endian and padded fully to 8 bytes -- i.e. `sha256(headBlockHash + timestamp + random + feeRecipient)[0:8]`.
+  * The payload build process **MUST** be identified via `payloadId` where `payloadId` is defined as the hash of the block-production inputs, see [Hashing to `payloadId`](#hashing-to-payloadid).
   * Client software **MUST** set the payload field values according to the set of parameters passed into this method with exception of the `feeRecipient`. The prepared `ExecutionPayload` **MAY** deviate the `coinbase` field value from what is specified by the `feeRecipient` parameter.
   * Client software **SHOULD** build the initial version of the payload which has an empty transaction set.
   * Client software **SHOULD** start the process of updating the payload. The strategy of this process is implementation dependent. The default strategy is to keep the transaction set up-to-date with the state of local mempool.
@@ -205,13 +205,26 @@ This structure contains the attributes required to initiate a payload build proc
 
 5. If any of the above fails due to errors unrelated to the client software's normal `SYNCING` status, the client software **MUST** return an error.
 
+##### Hashing to `payloadId`
+
+The `payloadId` is the `sha256` hash of the concatenation of version byte and inputs:
+```python
+PAYLOAD_ID_VERSION_BYTE = b"\x00"
+sha256(PAYLOAD_ID_VERSION_BYTE + headBlockHash + payloadAttributes.timestamp.to_bytes(8, "big") + payloadAttributes.random + payloadAttributes.feeRecipient)
+```
+Note that the timestamp is encoded as big-endian and padded fully to 8 bytes.
+
+This ID-computation is versioned and may change over time, opaque to the engine API user, and **MUST** always be consistent between `engine_forkchoiceUpdated` and `engine_getPayload`.
+The `PAYLOAD_ID_VERSION_BYTE` **SHOULD** be updated if the intent or typing of the payload production inputs changes,
+such that a payload cache can be safely shared between current and later versions of `engine_forkchoiceUpdated`. 
+
 ### engine_getPayloadV1
 
 #### Request
 
 * method: `engine_getPayloadV1`
 * params:
-  1. `payloadId`: `DATA`, 8 bytes - Identifier of the payload build process
+  1. `payloadId`: `DATA`, 32 bytes - Identifier of the payload build process
 
 #### Response