How to pay employees
All Australian employers should understand their legal obligations when it comes to employee pay. To avoid legal issues, you must provide accurate and timely payments to employees.
In this article, we’ll discuss legal requirements around payslips, wage payments and compulsory superannuation payments for your employees in Australia.
What you need to know about paying your employees
Below, we cover everything you need to know around your legal requirements for paying employees.
Paying employee salaries & wages to employees
Employers in Australia must pay all employees at least the national minimum wage. This amount may vary depending on the industry, occupation, and level of experience of the employee. To determine your employees’ minimum wage rate, you should always check the relevant award or agreement on the Fair Work Australia website
Paying super and providing leave to employees
Employers in Australia need to pay superannuation and provide paid leave for employees. Employers must also report withholding taxes. You can learn more about your legal requirements on the Australian Taxation Office (ATO) website.
Providing payslips to staff
According to Fair Work Australia requirements, all employees must must receive a payslip for each pay period. Payslips can be provided to staff electronically or on paper.
Payslips must include the employee’s name and the pay rate, employee’s hours worked, gross and net pay, and any deductions made. An employee’s payslip should be provided within one working day of receiving the payment.
Paying super & other compulsory deductions
Employers are required to deduct taxes and superannuation contributions from their employees’ wages. Superannuation contributions must be paid to the employee’s chosen superannuation fund. Taxes are withheld based on income and the tax file number declaration.
Employers can also provide salary sacrifice arrangements and union fees. Employers can also help staff with voluntary deductions for workplace giving, insurance and more.
How to calculate and pay employee wages in Australia
Step 1 – Choose payroll software that is single touch payroll (STP)compliant.
Automate employee salary and wage calculations using small business-friendly single touch payroll (STP) software like Payroller. STP software helps you maintain accurate records of all employee wages paid and meet ATO laws.
Step 2 – Generate payslips for your employees
Providing payslips ensure that your employees have an accurate record of your wage payments to them, their leave balances and superannuation entitlements.
Step 3 – Pay your staff wages on time
Paying employees accurately and on time can be done in an affordable way using ABA files. Learn how to prepare an ABA file with Payroller and upload it to your banking provider to pay your employees with our user guide.
When you use Payroller, your business stays up-to-date with legal requirements of paying employees in Australia. Our STP software also ensures accurate payslips, and includes compulsory deductions in payroll.
We recommend a periodic review of your existing payroll processes and software with our tutorial.