Are you aware that there is definite information that needs to be on your employee’s payslip?
Below is a list of what to include:
• employer’s and employee’s name
• employer’s Australian Business Number (if applicable)
• pay period
• date of payment
• gross and net pay
• if the employee is paid an hourly rate:
o the ordinary hourly rate
o the number of hours worked at that rate
o the total dollar amount of pay at that rate
• any loadings, allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be separated out from an employee’s ordinary hourly rate
• the pay rate that applied on the last day of employment
• any deductions from the employee’s pay, including:
o the amount and details of each deduction
o the name, or name and number of the fund / account the deduction was paid into
• any superannuation contributions paid for the employee’s benefit, including:
o the amount of contributions made during the pay period (or the amount of contributions that need to be made)
o the name and / or number of the superannuation fund the contributions were made to.
Make payroll simple for yourself!
• Do you have employee timesheets that are easy to understand and translate?
• Do you use an electronic payroll system such as MYOB or Xero?
• Do you transfer funds directly to your employee’s bank accounts?
• Do you upload payment files to the bank?
• Do you email payslips to employees?
Other considerations
• Have you got complete and correct documentation from your employee? You need to supply them with a Tax file Number Declaration Form; Super Choice form; personal details such as bank details, address, telephone number and next of kin.
• Have you completed the employee section of the Tax File Number Declaration and sent the original to the ATO within the specified time?
• Have you provided your employees with a Fair Work Information Statement?
• Do you maintain and keep all necessary employment records, which, most often, include wage rates, leave history, superannuation details, nature of the employment (for example, full-time, part-time or casual) and hours worked? Have you double-checked whether any subcontractors should really be considered employees for taxation, superannuation and/or workers compensation purposes?
• Are you paying your employee’s superannuation at least every three months?
• Are you under an Award? Are you paying the correct rate?
• Have you got the classification right – casual, part time, full time, subcontractor?
• Do you have appropriate written policies and procedures in place?
• Are you familiar with the National Employment Standards?
If you need assistance with your payroll and bookkeeping services call Jaleana on 0400 102358. For further information check out her website www.bookkeepingfairyperth.com.au