If you’re an employer, you’re probably across how payslips work right? For instance, you already know that you must give employees payslips within 24 hours of paying them and that you can provide payslips in electronic or hard copy format. So that’s it right? That’s all you need to know – well, not exactly! Did you know that Fair Work has specific requirements in terms of what information should be reported on a payslip? Do you know if your payslips are compliant? Not sure? Here is a list of items that you must include on payslips (followed by some items that don’t have to be included, but should be!)
Items that must be included on a payslip
- Employer’s name
- Employer’s Australian Business Number (if any)
- Employee’s name
- Date of payment
- Pay period
- Gross and net amounts paid
- PAYG withholding amount
- If employee is paid an hourly rate, the ordinary hourly rate, the number of hours worked & total amount of pay at that rate
- If employee is paid an annual rate of pay (salary), the rate as at the last day in the pay period
- Any loadings, allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be separated out from the employee’s ordinary hourly rate
- Any deductions including the amount and details of each deduction and the name and/or number of the fund/account into which the deduction was paid
- Superannuation contributions including the amount to be paid and to which fund (name and/or number)
Items you don’t have to include on a payslip (but you should do it anyway!)
- Leave balances – show annual and personal leave entitlements i.e. days/hours as at last day of current period
- Employee’s employment status i.e. full time, part time or casual
- Name of award under which you are employing the employee
- Employee’s classification under the award/agreement
- Employee’s bank details
So now that you know what to include on your payslips it’s important that you check your current systems and ensure that payslips being produced are compliant. Don’t assume that just because you are using software that everything will be okay – software is only as good as the person using it. You are the employer – it’s up to you to check these things and make sure that they are being done correctly. Check your payslips today!
