Author: Lehanne Bleumink, Gold Seal HR Services Manager.
Employers are required to keep accurate and complete records for all of their employees as well as issue payslips. These record keeping and pay slip obligations are designed to ensure that employees receive their correct wages and entitlements.
Employers are not always aware that payslips must be issued to each employee within 1 working day of pay day, even if the employee is on leave. They are required to be in electronic form or hard copy and written in plain English. The Fair Work Act 2009 and Fair Work Regulations 2009 prescribe particular information that must be included on all payslips.
WHAT INFORMATION IS REQUIRED TO BE INCLUDED ON PAY SLIPS?
Pay slips are required to contain details of the payments, deductions and superannuation contributions for each pay period as follows:
- Employer and employee’s name.
- Employer’s ABN (if applicable).
- Pay period and date of payment.
- Gross and net pay.
- Any loadings, allowances, bonuses, incentive-based payments, penalty rates, or other separately identifiable entitlement paid.
- The ordinary hourly pay rate, the number of hours worked at that rate and the amount of the payment made.
- If paid an annual salary, the rate as at the last day in the pay period.
- Any deductions made, amount and details of each, the name and/or number of the fund or account the deduction was paid into.
- Any superannuation contributions paid for the employee’s benefit, including:
- the amount of contributions the employer made or is required to make during the pay period.
- the name and/or number of the superannuation fund the contributions were made or will be made.
Electronic payslips must include the same information as hard copy pay slips. They should be sent via email or into an electronic personal account in an easily printable format. We recommend that employers don’t simply store them on a database.
SHOULD LEAVE BALANCES BE ON A PAY SLIP?
While it’s best practice to show leave balances on pay slips, it is not a legal requirement. However employers do need to tell employees their leave balances if they ask for it.
Fair Work Inspectors can issue employers with an infringement notice if they don’t include the right information on a pay slip, or don’t issue pay slips at all or within 1 working day of paying employees. It is unlawful for employers to give pay slips that they know are false or misleading. Employers who do not issue employees with a payslip are not meeting their obligations under the Fair Work Act 2009, therefore are encouraged to do so immediately.
For assistance on any of your HR/IR requirements – call Gold Seal on 03 9510 5100 or email HRServices@goldseal.com.au