Payslips: Are you compliant?
Incomplete and incorrect pay slips are still one of the most common problems identified by Fair Work Inspectors.
Fair Work Inspectors can issue employers with on-the-spot infringement notices for failing to meet record keeping and pay slip obligations under the Fair Work Act 2009.
An infringement notice can be issued within 12 months from the day the contravention(s) is alleged to have occurred. Generally, employers have 28 days to pay the penalty shown on the infringement notice.
The maximum fines payable from an infringement notice are:
> For an individual: $510 per breach
> For the business: $2,550 per breach
If an employer's failure to meet their obligations is serious, wilful or repetitive, Fair Work Inspectors can recommend the matter go to court.
Failing to comply with payslip obligations can be very expensive. Here is a summary of the key things employers need to know:
- > Payslips must be issued to employees within 1 working day of the payment being processed. Even if an employee is on leave, employers are still required to issue them with a pay slip.
- > Payslips can either be in hard copy or electronic form. The same mandatory information must be included regardless of how the payslip is produced.
- > The following information must be included on payslips:
1. The employer's and employee's name
2. The Employer's Australian Business Number (if applicable)
3. The start and end date of the relevant pay period
4. The date the payment is being made
5. The gross and net payment amounts
6. If the employee is paid an hourly rate, the payslip must show the employee's 'ordinary hourly rate' (generally the rate excluding loadings, penalties, and allowances), the number of hours worked at that rate, and the total dollar amount of pay at that rate
7. All superannuation contributions paid for the employee's benefit
8. If the employee is paid an annual rate of pay, the rate as at the latest date to which the payslip relates
9. All loadings (such as the casual loading), allowances, bonuses, incentive-based payments, penalty rates, or other paid entitlements that can be separated out from an employee's ordinary hourly rate
10. All deductions from the employee's pay, including: the amount and details of each deduction and the name, or name and number of the fund / account the deduction was paid into
11. The amount of contributions made during the pay period (or the amount of contributions that need to be made)
12. The name, or the name and number, of the superannuation fund the contributions were (or will be) made to.
- > Leave balances don't need to be shown on an employee's pay slip. But it's a good idea and best practice to have it on there because it allows employees to keep track of leave balances and can make dealing with leave requests easier.
Need help with HR?
Workforce Guardian's online HR system and support services include a wide range of HR processes and HR documents and compliance tools to help employers meet their record-keeping and pay slip obligations. Such as Managing Time and Attendance Process, Paying Workers Process and a pay slip template.