How to read a payslip¶

A payslip is the record you give an employee each time you pay them. It sets out how their pay was worked out for that pay period. It shows the pay, the tax taken out, any other deductions, and the super for that pay.

Fair Work sets the rules for payslips in Australia. The rules cover what a payslip must show, and when you must give it to the employee.

In one line

A payslip is the record of each pay. Fair Work requires you to give it within one working day of pay day, and it must show the pay, tax, deductions and super.

Why this matters¶

A payslip helps an employee check that they were paid correctly. It is also a record for the business. Knowing what a payslip must show helps you read your own, or prepare one that meets the Fair Work rules.

What you will learn¶

What a payslip is and why it is given
The main things a payslip must show
When a payslip must be given to an employee

Understanding the concept¶

Fair Work says a payslip must be given to an employee within one working day of pay day. This is true even if the employee is on leave. A payslip can be given electronically or as a hard copy.

A payslip must show details of the pay for that pay period. This includes:

The employer's name and the employer's Australian Business Number (ABN), if the employer has one.
The employee's name.
The pay period, and the date the employee is paid.
The gross pay (the amount before deductions) and the net pay (the amount paid to the employee).
If the employee is paid an hourly rate, the ordinary hourly rate, the number of hours worked at that rate, and the amount of pay at that rate.
Any loadings, allowances, bonuses, incentive payments or penalty rates.
Any deductions, including the name (or name and number) of the fund or account each deduction was paid to.
The amount of super the employer paid, or plans to pay, for that pay period.

For accountants & bookkeepers

Fair Work confirms a pay slip must be given within one working day of pay day, in electronic or hard copy form. It must set out the employer name and ABN, employee name, pay period, date of payment, gross and net amounts, and any loadings, allowances, bonuses, penalty rates or other separable entitlements. It must show each deduction with the fund or account name (or name and number), and the amount of superannuation contributions for the period. A salaried employee's pay slip must show their annual pay rate.

Example¶

Sam is paid each fortnight. On pay day, Sam's employer emails a payslip. It shows the business name and ABN, Sam's name, the fortnight it covers, and the pay date. It sets out Sam's gross pay, the tax taken out, the net pay Sam received, and the super the employer will pay to Sam's fund. Sam checks the hours and the pay match the work done that fortnight.

Common mistakes¶

Giving the payslip late — Fair Work requires it within one working day of pay day.
Leaving off the super amount — the payslip must show the super for that period.
Not naming the fund or account for a deduction — the payslip must show this.
Showing only the net pay — the payslip must show the gross pay as well.

How this works in myaccountant¶

In the app — when you run a pay run, myaccountant produces a payslip for each employee. It works out the pay, the tax, and the super, and shows them on the payslip. You can then email the payslip to the employee.

Key points¶

A payslip is the record of each pay you give an employee.
Fair Work requires it within one working day of pay day.
It can be electronic or a hard copy.
It must show gross pay, net pay, deductions and super.
It must show the employer name and ABN, and the employee name.
It must name the fund or account for each deduction.

Learn next¶

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

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