Payment summaries provide employees with a comprehensive summary of their earnings, taxes withheld, and other deductions for the financial year.
These summaries are essential for completing personal tax returns as they outline all relevant income information needed by employees when filing taxes.
For example, an employee may receive a payment summary at the end of the financial year detailing total earnings of $60,000, with $15,000 withheld for taxes.
Payment summaries help ensure transparency in income reporting and assist employees in fulfilling their tax obligations.
