Employee records¶

Employee records are the details you keep for each person you employ. They cover who the person is, how they are employed, what you paid them, and the tax and super that went with that pay. Keeping them is a legal duty, not just good habit.

This lesson looks at the records tied to a single employee. For the wider payroll records your business keeps, see the Fundamentals lesson on payroll records.

In one line

For each employee you keep their personal and pay details plus tax and super records — and you keep them for a set number of years.

Why this matters¶

Good records show you paid people correctly and met your tax and super duties. They also let a person see their own history, even after they leave. Both Fair Work and the ATO can ask to see these records, so keeping them protects your business.

What you will learn¶

The employee-specific records to keep
How Fair Work records differ from ATO tax and super records
How long each type of record is kept

Understanding the concept¶

The records for each employee fall into a few groups.

Personal details. Who the person is, how they are employed (for example full-time, part-time or casual), and their contact details.
Pay details. What you paid, the hours where relevant, and the amounts taken out.
Tax records. Records tied to the tax you withheld from their pay.
Super records. Records of the super you paid and, where it applies, their fund choice.

Two authorities set the rules, and they set different keeping periods.

Fair Work covers workplace records such as pay and hours. The Fair Work Ombudsman says time and wages records must be kept for 7 years.
The ATO covers tax and super records. The ATO says most business records, which include tax and super records, must be kept for 5 years. The 5 years is generally counted from when the record was made or the transaction was done, whichever is later.

Because the periods differ, a safe habit is to keep each record for at least the longer period that applies to it.

For accountants & bookkeepers

Fair Work sets 7 years for time and wages records under the Fair Work Act and Regulations. The ATO sets 5 years for tax and super records, with the clock generally running from when the record was made or the transaction completed, whichever is later. Super fund-choice records are kept for 5 years, and some records must be kept longer where they still bear on a later assessment. Employee records are private and confidential.

Example¶

Marco employs one casual worker at his shop. For that worker he keeps their personal and employment details, a record of each pay with the hours worked, the tax he withheld, and the super he paid. When the worker later asks to see their pay history, Marco can show it because he kept the records.

Common mistakes¶

Throwing out records too early — the keeping periods run for years.
Treating tax and Fair Work records as the same, when they have different periods.
Not keeping a record of the person's super fund choice.

How this works in myaccountant¶

In the app — myaccountant keeps your employee and payroll records, including each person's pay details and their tax and super records, so your history stays in one place.

Key points¶

Employee records cover personal details, pay details, tax and super.
Fair Work and the ATO each set the rules.
Fair Work time and wages records are kept for 7 years.
ATO tax and super records are kept for 5 years.
Keeping each record for the longer period that applies is a safe habit.
Employee records are private and confidential.

Learn next¶

General information only — not tax, super or financial advice.

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