Pay Slip Obligations

Pay slips are an important component to your bookkeeping. They not only ensure that your employees are aware of their pay and other financial earnings from your business, but they can also be used as a tool to help manage your finances and ensure you are compliant. Below we answer some basic questions businesses have asked surrounding pay slips.

When are pay slips given?
Pay slips have to be given to an employee within 1 working day of pay day, even if an employee is on leave.

How are payslips given?
Pay slips have to be in either electronic form or hard copy. Electronic pay slips must have the same information as paper pay slips.

What has to be on a payslip?
Pay slips have to cover details of an employee’s pay for each pay period. Below is a list of what to include:

    • if the employee is paid an hourly rate: the ordinary hourly rate, the number of hours worked at that rate and the total dollar amount of pay at that rate
    • gross and net pay
    • date of payment
    • pay period
    • employer’s Australian Business Number (if applicable)
    • employer’s and employee’s name
    • any loadings, allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be separated out from an employee’s ordinary hourly rate
    • the pay rate that applied on the last day of employment
    • any deductions from the employee’s pay, including:
      – the amount and details of each deduction; the name, or name and number of the fund / account the deduction was   paid into and any contributions that were made.
    • any superannuation contributions paid for the employee’s benefit, including:
       – the amount of contributions made during the pay period (or the amount of contributions that need to be made)
      – the name and / or number of the superannuation fund the contributions were made to.

Should leave balances be on payslips?
While it is best practice to show employee’s leave balances on their pay slip, it’s not a requirement. Employers do need to tell employees their leave balance if they ask for it.

Employers who give proper pay slips are able to keep good records that can be easily found if needed.

Disclaimer: The information contained in this site is for general guidance on matters of interest only. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers.

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