What Is A Payslip?
A payslip is a document that employers provide their employees to show their total wages for a certain period. This may include the total amount earned, which can also reflect deductions for tax payments.
Payslips are not only used for salary payments they should also have the following:
- PAYG or income taxes withheld
- Employer contributions for superannuation funds
- Reimbursements (travel expenses, food, etc.)
- Deductions for other contributions
- Amount of time/leave owed or used by the employee
The world of work has changed dramatically in the last decade, and that’s especially true relating to how we get paid. Previously, payslips were hard copy documents that were given to employees with a cheque or wages envelope. Today, many employers prefer to give out electronic versions of payslips available for employees online.
Keeping records of hours worked and wages paid is an important part of protecting workers from wage theft. As a business owner, you know your employees are your greatest asset. You want to keep them happy and healthy, and you want to make sure they’re paid fairly for the work they do.
The Fair Work Act 2009 and the Fair Work Regulations 2009 require employers to keep accurate records of hours worked and wages paid to each employee. These regulations also stipulate that employers must issue payslips to each employee, including the total amount of hours they worked, leave taken, and balance of remaining leaves.
Make a payslip easily with our online payslip generator. Our payslips are legally compliant, and can be automatically generated straight from your business payroll.
According to the Fair Work Act 2009 and the Fair Work Regulations 2009 in Australia, payslips must contain the following to be considered legally compliant:
- The name of the employer
- The name of the employee
- The date the amount is paid to the employee
- Work duration and dates the payslip covers
- Gross amount paid to the employee before tax
- Gross amount paid to the employee after tax (net)
- Detailed amount of other fees such as allowances, bonuses, penalty rates, etc
- Detailed amount of deductions made by the employer
Take note that the requirements for certain payslips may vary, depending on an employer’s type and entitlement.
Here are some of the events/scenarios where payslips may vary:
- When employers are required to settle superannuation contributions
- The amount of the contribution made by the employee
- The name, or name and number, of the superannuation fund the contributions were made
- When an employee is paid at an hourly rate
- The regular hourly rate pay
- The number of hours paid at that specific rate
- The amount of payment done within the rate
- When an employee is paid on an annual salary rate, the pay is on the last day of the pay period.
When preparing payslips for employees, Australian employers should be aware of the following:
- Use printable payslips. Your employees may have different computers, printers, and internet speeds. It is important that you provide a printable PDF version of your payslip that anyone can download and print out. You can generate payslips instantly from payroll with Payroller software.
- Ensure your employees can access their payslips easily and privately. This means that any personal information in your payslip should not be accessible by anyone other than the employee who is being paid by you. Your staff can view their payslips on their own Payroller employee mobile app for free when you use Payroller software.
Payslips are required to keep track of your employees’ earnings and how much they have been paid. This allows you to ensure that you are paying them their correct wages and also helps you to avoid any disputes or legal issues down the line.