Payslips: definition and templates
Last editedJune 20212 min read
Payslips are a requirement for any business with employees. So, what are payslips, how are they delivered, and what details must be included on one? Find out the answers to these questions in our guide below.
What are payslips?
A payslip is a document, delivered either on paper or electronically. It shows an employee how much they’ve been paid during a specified period at work. A payslip should also show any tax that’s been deducted from their overall pay, as well as other relevant deductions and employer contributions.
In Australia, employers must provide payslips to employees within one working day of any payment. This applies to employees on leave as well as those actively at work.
Details to include on a payslip
A payslip must cover all relevant details relating to an employee’s pay during each pay period. This includes:
Date of payment
Pay period dates
Employer’s name
Employer’s ABN
Employee’s name
Payment amount (Gross and net)
Incentive-based payments
Bonuses
Monetary allowances
Penalty rates
For employees paid by the hour, you should list the hourly rate of pay as well as the number of hours worked for the pay period in question.
There must also be a section for relevant deductions, including the account names and numbers for each deduction. If your business makes contributions to the employee’s superannuation fund, you must also include the following details:
Name and number of super accounts
Amount of super contributions
JobKeeper scheme and payslips
If your business employs any workers under the JobKeeper scheme, these employees must be paid the minimum fortnightly payment of $1500. This should be reflected on the payslip by showing the extra amount paid by the employer, showing that the employee has received their minimum JobKeeper payments.
Payslip format
When looking at most payslip examples, you’ll see that the required information is laid out in a similar way. The date and pay period appear at the very top of the payslip template, followed by all identifying employer information. Below the date and business information, you can list the employee’s wages or salaries along with rate of pay, super contributions, and any other relevant deductions.
Easy payslip template
The following payslip template is adapted from an example available for download on the Fair Work Ombudsman website, where you’ll find additional payslip examples. You can simply copy this payslip format and adjust it to best suit your business’s needs.
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Date of Payment: |
____/____/_______ |
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Pay Period: |
____/____/_______ |
to |
____/____/_______ |
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Employee’s name: |
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Employer’s name: |
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Employer’s ABN (if any): |
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Classification/Job Title under the Award(s)/Agreement(s): |
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Name of Award(s)/Agreement(s): |
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Ordinary hourly rate: |
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and/or annual rate (salary): |
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Entitlements |
Unit |
Rate |
Total |
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Wages for ordinary hours worked |
00 hours |
$00.00 |
$00.00 |
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<Insert any leave taken during the pay period> |
00 hours* |
$00.00* |
$00.00 |
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TOTAL ORDINARY HOURS = <xx> hours |
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<Insert name of entitlement > |
00 hours* |
$00.00* |
$00.00 |
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<Insert name of entitlement> |
00 hours* |
$00.00* |
$00.00 |
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Gross payment |
$00.00 |
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Â
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Deductions |
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Taxation |
$00.00- |
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<Insert any other deductions> |
$00.00- |
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Total deductions |
$00.00- |
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Net payment |
$00.00 |
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Employer superannuation contribution – <Insert superannuation contribution> |
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<Insert account/fund name (or name and number of fund)> |
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Contribution |
$00.00 |
Â
Payslip delivery requirements
All payslips must be delivered to employees in hard copy format or electronically. If you’ve gone paperless, you should ensure that the online payslip format is easy to print. Many businesses are using online accounting packages like QuickBooks Online and Xero to issue payslips, which ensures employees can log in to view their payment details as needed. This helps you meet Australia’s Single Touch Payroll obligations at the same time.
Importance of issuing payslips
It’s important to stay on top of issuing payslips, whether you type them up manually or use an online accounting package. Not only is this vital for your own bookkeeping, but it could also result in penalties.
When employees don’t receive their payslip within one working day of payday, they have the right to report the employer to the Fair Work Ombudsman. Fair Work inspectors might issue an infringement notice, which comes with a fine, for the following reasons:
The payslip has missing or incorrect information
The payslip wasn’t issued within one working day of payday
It’s also illegal for a business to issue false or misleading payslips, which can result in more serious penalties.
To avoid these situations, be sure that you know what information must be included. It’s helpful to use online accounting software to automatically issue your invoices, ensuring you never miss a payday.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.