What is a payslip?
A payslip is a document the sets out each employee’s pay details for a certain period. This document will also include any deductions, superannuation contributions and final net pay for the period.
Am I required to provide my employees with a payslip?
The short answer is YES. The Fair Work Act requires employers to provide a payslip to all employees.
What must I include on my employee’s payslip?
The Fair Work Regulations state the following must be included on each payslip for each pay period:
- The employee’s legal name
- Your business name and ABN
- Date of payment
- The pay period covered by the payment
- The number of hours worked by the employee
- The employee’s hourly rate or the employee’s salary rate
- The gross payment amount
- The amount of any loadings, allowances, overtime, bonus/commission payments
- Types and amounts of all deductions from the employee’s gross pay (including tax withheld)
- The net amount of the payment
- Details of any superannuation contributions for the period
What other details may be of benefit to add to my employee’s payslips?
The following items are not required to be included on payslips by law but may make life easier for both yourself and your employee:
- Accrued leave balances
- YTD amounts including gross payments, tax withheld and superannuation contributions
- Any relevant Modern Award that may apply to the employee
- The employee’s employment status (full-time, part-time or casual)
- The employee’s bank details
Can I give my employees handwritten payslips?
You can give your employees handwritten payslips but sometimes banks and lenders will not accept handwritten pay records. By law you also need to ensure that all payslips you provide are legible.
When should I give my employees a payslip?
Whether electronically or in paper format, employers must send payslips to employees within one day of the pay date.
What happens if I don’t provide my employees with a payslip?
Employers who fail to provide their employees with a compliant payslip or fail to provide payslips on time could face penalties and fines.
How long do I need to keep my wages records?
The law requires employers to keep all time and wage records for seven (7) years. All records must be in English, readily accessible if requested by a Fair Work Inspector, and must be easy to read and understand.
If you have any further questions about your requirements regarding your payroll reporting please don’t hesitate to contact the team at HHH Partners.