The requirement to provide payslips and the detail contained within them is an absolute requirement of all Employers.
The failure to provide a payslip within the time period, or manner described can lead to significant penalties being imposed against the business and officers (including HR personnel) of the business personally.
When and how are pay slips issued?
Pay slips must be issued within one working day of an employee being paid.
Pay slips can be distributed in hard copy or electronic format, although a record of the payslip being provided should be maintained regardless of the manner in which it was distributed.
Employers should also be mindful of privacy obligations when issuing pay slips to ensure that electronically distributed pay slips are sent through secure email or saved to the businesses intranet.
What’s on the pay slip?
In general terms, pay slips must detail any payments and deductions made together with any superannuation contributions for each pay period. Specifically, however, pay slips must include all of the following:
a) the employer’s name
b) the employee’s name
c) the period to which the pay slip relates
d) the date on which the payment to which the pay slip relates was made
e) the gross amount of the payment
f) the net amount of the payment
g) any amount paid to the employee that is a bonus, loading, allowance, penalty rate, incentive-based payment or other separately identifiable entitlement
h) the ABN of the employer (if any).
Also, where relevant, a pay slip must include any of the following:
a) the ordinary hourly pay rate, and the number of hours worked, at the amount of payment at that rate if the employee is paid at an hourly rate of pay
b) the salary rate as at the last day in the pay period if the employee is paid an annual salary
c) any deductions made from the gross amount of payment and if such a deduction was made into a specific fund nominated by the employee; the name, or the name and number of the fund or account which the deduction into which the deduction was paid should also be referenced
d) the amount of each contribution the employer made, or is liable to make during the pay period, and the name or name and number of any superannuation fund into which the contributions were made or will be made.
What about leave balances?
Despite it being best practice to provide employees with their leave balances on their pay slips, it is not a requirement. Employers do however need to tell employees their leave balance if they ask for it.
This Fact Sheet has been provided by our partners, HR Assured. If you need advice or guidance on managing employment records in your workplace contact HR Assured on 02 9083 0033 and quote your JobeGetter UUID to receive a free advice call.
For more information about HR Assured, visit: www.hrassured.com.au