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Payslips - Are They Correct?

Posted on 10 July 2013


Did you know that you are required by law to give your employees their payslip within one day of their pay day, either in hard copy or electronically? Not providing your employees their payslips in a timely and correct manner can lead to serious consequences under the Fair Work legislation.

So… what should be included on the payslips?

  • The name of the employer
  • The employer’s ABN
  • The employees’ name
  • Date of payment
  • The pay period ie. xx/xx/20xx to xx/xx/20xx
  • The gross and net amount of pay
  • Employees leave entitlements accrued to date, if applicable to them (ie. personal leave, annual leave)
  • Any loadings, allowances, bonuses, penalty rates or other entitlements paid will need to be shown separately.
  • If the employee is paid on a salary basis, the rate as at the last day in the pay period.
  • If any deductions are taken from the employee’s pay, you need to show the amount and details of each deduction.  This includes superannuation, and you need to include the name of the fund, and preferably the account number as well.

Employee Deductions

You are allowed to make deductions from an employees’ pay, generally speaking, if:

  • It is principally for the employees benefit and the employee has agreed in writing; or
  • The deduction is authorised by or under an award or an order of Fair Work Australia; or
  • The employee authorised the deduction as per their employment agreement; or
  • The deduction is authorised by a court order.

You are not allowed to make deductions from an employees’ pay, generally speaking, if:

  • The employee is under 18 years of age and their parent or guardian has not authorised the deduction in writing; or
  • It is for the benefit of the employer or a party related to the employer and the circumstances is unreasonable

Electronic Payslips

If you provide your payslips electronically, you must ensure:

  • Your employee receives their payslip via email rather than simply storing them on your computer database and they must be delivered securely and confidentially.
  • Issued in a format that is easy to print (ie. PDF)
  • Ensure that your employee can access and print their payslips in private.

Failing to meet your payslip and record keeping requirements can result in further action from Fair Work Australia, either in the form of an infringement notice, or in the case of serious, wilful or repetitive offences can be taken to court. 

So it is in your best interest to review your payslips and make sure they are correct. Should you need any assistance please contact our office.

Tags:Employees2013AdminAccounting SoftwareComplianceATO
g7crtech2798 days ago
"Hi,this is a very useful article and you have described many things faced by various companies. You are very right when you said that there are many HRMS Solutions in the market today which help us generate e-slips. We are an SME and are using an HRMS known as HAPA (Human resources And People Appreciation), it does all the end-end activities like calculation of payroll, attendance, leaves, stores details of the employees along with the scanned copies of the photo/documents etc. and is very cost effective also, specially for SMEs. In HAPA after the calculation of the salary, the pay slip is mailed to the employees automatically and there is an option where an employee can take the print out of the Payslip as well. Before this HRMS solution, as an HR it was a nightmare for me to generate payslips and distribute among our employees....I totally agree on all the points you mentioned. Thank you so much to share your views and knowledge."

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