Recent Precedent 2010 - Issue 5

Posted on 25 June 2010

Are you Issuing Payslips?

Employers must issue pay slips to each employee within 1 working day of their pay day. It can be issued in electronic form or hard copy and preferably in plain and simple English. Fair Work Inspectors can issue employers with infringement notices if they fail to meet pay slip and record-keeping requirements. However, if an employer’s failure to meet the requirements is serious, wilful or repetitive, Fair Work Inspectors may take the employer to court.

What Information Must be on a Payslip?

The employee’s pay slip must include:
• the full name of the employer
• the ABN (if any) of the employer
• the employee’s name
• the date of payment
• the pay period (eg. 19/7/10 to 25/7/10)
• the gross and net amount of pay
• any loadings, monetary allowances, bonuses, incentive-based payments, penalty rates or other entitlements paid that can be singled out
• if the employee is paid an hourly rate - the ordinary hourly pay rate and number of hours worked at that rate and the amount of pay at that rate
• if the employee is paid an annual rate (salary), the rate as at the last day in the pay period
• any deductions made from your employee’s pay, including the amount and details of each deduction (including superannuation) including the name, or the name and number, of the fund or account the deductions are paid into
• if you are required to pay superannuation contributions for your employee’s benefit, you should include:
a) the amount of each superannuation contribution made during the period to which the pay slip relates, or the amounts of contributions that you are liable to make; and 
b) the name or the name and number of the superannuation fund you put or will put superannuation contributions into.

What to Do

Check to ensure that your pay slips comply with your record-keeping obligations. For assistance in managing your obligations and ensuring compliance, contact us for a Free Business Health Check on 1300 306 335.