If you have employees then you should be giving them payslips. But when should you give them out, what should be included on a payslip, how should they be delivered and what happens if you don’t provide them? Keep reading to find out everything you need to know.
What are payslips?
A payslip is a document given to an employee to show how much they have been paid and the amount of tax deducted from their pay.
When do I need to give payslips out?
You need to provide a payslip within one working day of the employee’s payday. This includes any employees on leave.
What needs to be included on a payslip?
A payslip has to cover details of an employee’s pay for each pay period.
This includes:
the employer's name
the employer's ABN (if any)
the employee's name
the date of payment
the pay period
the gross and net amount of payment
any loadings, monetary allowances, bonuses, incentive-based payments, penalty rates, or other separately identifiable entitlement paid.
Where relevant, the payslip must also include:
If the employee is paid an hourly pay rate, the ordinary hourly pay rate and the number of hours worked at that rate and the amount of payment made at that rate
If the employee is paid an annual rate of pay (salary), the rate as at the last day in the pay period
Any deductions made, including the name, or the name and number, of the fund or the account of each deduction
If the employer is required to make superannuation contributions for the benefit of the employee:
the amount of each contribution the employer made or is required to make during the pay period
the name, or name and number, of any superannuation fund into which the contributions were made or will be made.
How do I get the payslip to the employee?
A payslip must be given either electronically or in hard copy form. If given electronically, a copy of the payslip must be easily printed.
You can send payslips through QBO (if you have signed up for KeyPay), Xero or MYOB. Employees will also be able to log in and view their payslips whenever they need to.
All of these accounting packages allow you to meet your Single Touch Payroll reporting obligations.
What happens if I don’t provide a payslip?
If you do not provide a payslip within one working day of the employees pay day, or if you fail to include all of the required information, your business could be fined or taken to court.