With payslips now being issued more commonly online and electronically via email, it is important to ensure that payslips are correct every time employees receive their pay. Your employer is required to give you a payslip. At the end of the financial year (30 June), employers must also give employees a PAYG summary (Pay as You Go statement). This payment summary is an extra pay slip required by the Australian Taxation Office to record your full year’s worth of pay received from the employer. If your PAYG withholding payment summary is missing or lost, you should request a copy from your employer.
All employees should receive a payslip, either electronically or in printed form, within one working day of receiving pay. If you receive your pay electronically, it needs to be sent via email or into a personal account. It does not suffice for the employee to access their payslip on an online database or cloud-based application. Moreover, it should be issued in a manner that the employee can easily access it – for example; a worker may not have easy access to email if they work in a remote location or a manufacturing industry. In this instance, an employer should issue payslips in printed format.
A payslip must include the following information:
- The amount of pay, both gross (before tax) and net (after tax);
- The date of receiving the pay;
- The pay period;
- Any loadings, bonuses or penalty rate entitlements;
- Any deductions;
- Any superannuation contributions including the name of the super fund;
- The employer’s name and ABN if they have one; and
- The employee’s name.
If employees are paid by an hourly rate, the payslip should also contain the employee’s ordinary hourly rate and how many hours they worked at that rate. However, if paid an annual salary, the rate should be as on the last day of the pay period. Wages cannot be deducted unless there has been written consent or is required by law. These deductions include tax, superannuation and court ordered deductions.
Most modern accounting systems, including MYOB and Xero, also include leave balances on payslips. While this is not a legal requirement, it is best practice to include the balance on each pay slip.
As an employer, you must provide payslips by the Fair Work Act 2009 (Section 536), Fair Work Regulations 2009 (Reg 3.46) or relevant state legislation. These obligations include issuing payslips to your employees within one day of receiving pay in a confidential manner suitable for their employment. In addition to payslips, employers must also record any leave taken by a worker and the balance of leave which they have not taken.
The Fair Work Ombudsman (FWO) may conduct inspections and fine employers for failing to meet the requirements for issuing correct payslips or keeping the right records. In 2014, the FWO announced plans to visit over 350 businesses across Australia to inspect payslips and record keeping processes.
If you have any questions about your payslips or have issues with record keeping, our employment lawyers can assist. Let us know on 1300 544 755 or contact us through the form on this page.