Do you know what a payslip is? Keep reading this Business Kitz blog post to find out!
What is a payslip Australia?
In Australia, a payslip is a document provided by an employer to their employee that outlines the details of their pay for a given pay period. According to the federal government’s Fair Work Ombudsman website, a payslip must include the following information:
- The employer’s name and ABN (Australian Business Number) or ACN (Australian Company Number).
- The employee’s name.
- The date the payment was made.
- The pay period covered by the payment.
- The gross amount of pay before any deductions.
- The net amount of pay after deductions.
- The amount and details of any deductions made, such as tax, superannuation contributions, and any other payments or deductions.
- The hourly rate and number of hours worked at each rate, if the employee is paid an hourly rate.
- Any loadings, allowances, or bonuses paid.
- Any leave taken during the pay period, including the type of leave and the number of hours or days taken.
Employers are required by law to provide payslips to their employees, either in electronic or physical form, within one working day of paying their wages. Payslips help employees understand how their pay has been calculated and ensure they have been paid correctly according to their employment contract and relevant laws. They are also important documents for record-keeping and can be used as proof of income for various purposes.
How can I get my payslip?
Getting your payslip is essential for keeping track of your earnings and deductions, and it can also be used as proof of income for various purposes. A few ways to get your payslip are to:
Ask your employer: The easiest way to get your payslip is to ask your employer. Many employers now provide electronic payslips, which can be accessed via their HR portal or sent to your email address.
Use payroll software: If your employer uses a payroll software system, you may be able to access your payslip through the software’s employee self-service portal.
Request a physical copy: If your employer provides physical payslips, ask them to provide you with a copy. You may also be able to request a copy via email.
Remember, it’s important to keep your payslips safe and secure. Keep them in a secure location and avoid sharing them with anyone who doesn’t need to see them.
Where are my payslips on myGov?
If you’re an Australian employee, you may be able to access your payslips through your myGov account. According to the myGov website, here’s how to find your payslips:
Log in to your myGov account.
From your dashboard, select the ATO (Australian Taxation Office) section.
Under the ATO section, select the “Income” tab.
Scroll down to the “Employment” section and select “Employment income.”
You should now see a list of your employers. Select the employer you want to view payslips for.
If you’ve linked your myGov account to the ATO, you should be able to see your payslips under the “Documents” section for that employer.
It’s important to note that not all employers are required to provide payslips through myGov. If your employer doesn’t provide electronic payslips or doesn’t offer them through myGov, you’ll need to ask them to provide you with a physical copy or an electronic copy through another method.
Can you make your own payslip?
In Australia, employers are responsible for providing payslips to their employees. It is not recommended for employees to create their own payslips as they may not accurately reflect the correct information required by law, such as taxes and superannuation contributions. Creating fake payslips may also be illegal and can result in serious consequences. It’s important for employers to provide accurate payslips that comply with the Fair Work Act and other relevant laws. If an employee has concerns about the accuracy or completeness of their payslip, they should raise these concerns with their employer or seek advice from the Fair Work Ombudsman.
Best practice tips for payslips
Providing accurate and complete payslips is essential for complying with Australian employment laws and maintaining good relationships with employees. Here are some best practice tips for employers when it comes to payslips in Australia:
Include all required information: Ensure that all mandatory information is included on the payslip, including the employer’s name and ABN/ACN, the employee’s name, pay period, gross and net pay, and any deductions made such as PAYG withholding.
Be consistent: Ensure that payslips are provided on time and in a consistent format, whether physically or electronically.
Keep accurate records: Keep detailed and accurate records of employee pay, including payslips and other documents such as tax and superannuation records.
Provide explanations: If an employee has any questions about their payslip, be prepared to explain clearly how their pay was calculated and any deductions made.
Keep payslips secure: Store payslips and other employee records in a secure location, such as a locked cabinet or password-protected electronic file.
By following these best practice tips, employers can ensure that they meet their obligations under Australian employment laws and maintain good relationships with their employees.
How do I create a payslip?
As an employee, you generally do not create your own payslip. Your employer is responsible for creating and providing payslips to you. However, if you are an employer or small business owner, there are several ways to create payslips for your employees. You can use payroll or accounting software that includes a payslip template or a payslip generator or create a payslip template in a word processing or spreadsheet program. Your payslip should include the relevant information required by law, such as the employee and employer names and ABNs, the pay period covered, gross and net pay, and any deductions made. Ensuring your payslips are accurate, complete, and comply with the Fair Work Act and other relevant laws is essential.
What is an example of a payslip template?
The following is an example of how to generate a payslip.
[Employee Phone Number]
[Employee Email Address]
Pay Date: [Insert Pay Date]
Pay Period: [Insert Pay Period]
Ordinary Hours: [Insert number of hours worked] x [Insert hourly rate] = [Insert amount]
Overtime Hours: [Insert number of hours worked] x [Insert hourly rate] x [Insert overtime multiplier] = [Insert amount]
Leave Entitlements: [Insert leave type and amount] = [Insert amount]
Bonuses: [Insert bonus type and amount] = [Insert amount]
Tax: [Insert tax withheld amount]
Superannuation: [Insert superannuation contribution amount]
Health Insurance: [Insert health insurance premium amount]
Other Deductions: [Insert other deduction type and amount] = [Insert amount]
Total Earnings: [Insert total earnings]
Total Deductions: [Insert total deductions]
Net Pay: [Insert net pay]
[Employer Phone Number]
[Employer Email Address]
It’s important to note that this is just one example of a payslip template, and employers may customise their payslips to include additional information or reflect their branding. However, it’s important to ensure that the payslip includes all the relevant information required by law, such as the employee and employer names and ABNs, the pay period covered, gross and net pay, and any deductions made. Business Kitz provides legal templates such as these, with all the relevant details on how to generate payslips.
When do I need to provide a payslip?
In Australia, employers are legally required to provide payslips to their employees within one working day of paying their wages. This applies to all employees, and all forms of payment, including cash, cheque, or electronic transfer.
Employers must provide a payslip for each pay period, even if the employee’s pay has not changed. The payslip must contain certain information, including the employee and employer names and ABNs, the covered pay period, gross and net pay, and any deductions, such as taxes and superannuation contributions.
Employers are required to keep accurate records of payslips for a minimum of seven years. This helps to ensure that employees can access their payslips if needed and helps employers to comply with their record-keeping obligations.
If an employee requests a copy of their payslip, it must be provided ASAP. Employers who fail to provide payslips or who provide incorrect or incomplete payslips may be subject to penalties and fines.
Overall, it’s important for employers to provide timely and accurate payslips to their employees to ensure compliance with relevant laws and regulations and to maintain good relationships with their workforce.
For more precise advice on payslips in Australia and example payslips, you should seek legal advice. Our sister company Legal Kitz can assist in ensuring that your concerns are addressed and can provide you with advice that is tailored to your situation. You can book a free 30-minute consultation with our experienced and highly qualified team via our website now.