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Payslip Health Check. What needs to be included?

Posted by: ADP on 30 May 2014 in Compliance, Payroll

The Fair Work Ombudsman (FWO) has recently announced plans to visit 350 businesses throughout NSW, Victoria, Queensland, Tasmania and the ACT. In the spotlight is employment record keeping and payslips – click to access a quick Guide to understanding your obligations.

Aside from being a legal requirement for all employers, including the minimum information on payslips is essential in the event of an employee dispute over pay. Having clear and complete information is the best way to ensure there is no confusion or misunderstanding.

So what are the legal requirements for payslips? How can you check if your payslips comply? Here’s an example payslip with 11 requirements that every payslip must include.

11 Compulsory Elements on every Payslip

1. the employer’s name (e.g. XYZ Pty Ltd trading as XYZ Pie Shop)
2. the employer’s Australian Business Number (if applicable)
3. the employee’s name
4. the date of payment
5. the pay period (the period that the payment is for eg. 24/3/12 to 30/3/12)
6. the gross pay and net pay
7. loadings, allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be singled out
8. if the employee is paid an hourly rate:
    – the ordinary hourly rate
    – the number of hours worked at that rate
    – the amount of pay at that rate
9. if the employee is paid an annual rate (salary), the rate as at the last day in the pay period
10. any deductions from the employee’s pay, including:
    – the amount and details of each deduction
    – the name, or name and number of the fund / account the deduction was paid into
11. any superannuation contributions paid for the employee’s benefit, including:
   – the amount of contributions made during the pay period (or the amount of contributions that need to be made)
   – the name, or name and number of the superannuation fund the contributions were made to.

payslip_health_checkSome other rules for payslips in Australia

  • Employers have to give all employees a pay slip within 1 working day of their pay day, even when they’re on leave.
  • Pay slips should be issued electronically or on paper. ( Electronic pay slips must have the same info as the paper pay slips)

Best Practice Tips
It is best practice for employers to:

  • issue pay slips in an easily printable format
  • give pay slips securely and confidentially
  • ensure employees can access and print their pay slips in private (for example, an electronic pay slip isn’t suitable for a factory worker who doesn’t have access to a computer to privately read and print their pay slip).

What happens if Employers don’t give out a legal payslip?
The Fair Work Ombudsman can impose penalties and take employers to court if their failure to meet the requirements is ‘serious, willful or repetitive’. In recent years, an Adelaide company has been fined $35,000 and a Melbourne company $10,000 for failing to comply fully with the law.

Need more information?

by ADP Insider  

Originally published May 30 2014


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TAGS: deductions Fairwork Ombudsman Payslip Superannuation Tax