Payslip

What Is a Payslip?

A payslip is an official document provided by an employer to an employee each time they are paid. It serves as a detailed summary of an employee’s earnings, deductions, and net pay for a specific pay period. In Australia, issuing a payslip is a legal requirement under the Fair Work Act 2009 and must be provided within one working day of the employee being paid.

Payslips are critical not only for transparency and compliance, but also for helping employees understand how their wages are calculated.

Fair Work Ombudsman – Payslips

What Must Be Included on a Payslip?

The Fair Work Ombudsman specifies several mandatory details that must appear on every payslip:

• Employer and employee name
• Pay period (e.g. 1–14 July 2025)
• Date of payment
• Gross pay (earnings before deductions)
• Net pay (take-home pay after deductions)
• Ordinary hourly rate and hours worked, if applicable
• Overtime hours and rates, if applicable
• Any loadings or penalties (e.g. weekend rates, public holiday pay)
• Deductions (e.g. tax withheld, salary sacrifice, union fees)
• Superannuation contributions (including the fund name and amount)

Optional but helpful information might include leave balances, year-to-date earnings, or the employee’s job title.

Why Payslips Matter

Payslips are not just paperwork—they are a critical element of fair and compliant employment practices. They serve several purposes for both employers and employees:

For Employees:

• Financial clarity – Understand exactly how wages are calculated.
• Proof of income – Needed for loans, renting, or Centrelink applications.
• Tax compliance – Helps reconcile income with ATO records and tax returns.
• Dispute resolution – Offers a clear record in the event of pay discrepancies.

For Employers:

• Legal compliance – Failure to issue payslips correctly can result in penalties.
• Transparency – Helps build trust and reduce misunderstandings with staff.
• Record-keeping – Supports auditing, payroll reporting, and taxation requirements.

Digital vs. Paper Payslips

While payslips can be issued in either printed or digital formats, most modern employers provide payslips electronically—often via a payroll or employee self-service (ESS) platform like Microkeeper.

Benefits of Digital Payslips:

• Faster delivery (instant access)
• Reduced paper waste
• Secure and private
• Easy access to historical payslips
• Reduced admin for HR/payroll teams

Payslip Errors: Common Pitfalls to Avoid

Payslip mistakes can lead to disputes, legal breaches, and employee dissatisfaction. Common issues include:

• Incorrect pay period
• Wrong hourly rate or award interpretation
• Missing superannuation information
• Net pay not matching direct deposit
• Not listing overtime or penalty rates separately

Employers should use award-compliant payroll software to ensure accuracy and consistency.

How Often Are Payslips Issued?

Payslips must be issued every time an employee is paid, whether that’s weekly, fortnightly, or monthly. This applies to all employees, including:

• Full-time employees
• Part-time employees
• Casual employees
• Apprentices and trainees

Contractors may not receive payslips unless they are treated as employees under a contract of service.

How Microkeeper Simplifies Payslip Management

Microkeeper automates the generation and delivery of digital payslips, ensuring you stay compliant with Fair Work requirements while making the process efficient and error-free. Key features include:

• Automatic generation of compliant payslips at the end of each pay run
• Secure online access via the Employee Console
• Year-to-date breakdown of earnings, tax, and super
• Award interpretation built in, including overtime, penalties, and allowances
• Integration with Single Touch Payroll (STP) for accurate ATO reporting

Explore Microkeeper’s Payroll Software features

Payslips and STP (Single Touch Payroll)

In Australia, all employers must report employee payment information to the ATO through Single Touch Payroll. While STP doesn’t replace the need for payslips, it complements them by ensuring wage and tax data is transmitted to the ATO in real time.

Employees still rely on their payslips for personal record-keeping and verifying that their super and tax contributions are correct.

Learn more about STP

FAQs About Payslips

Are payslips mandatory for casual staff?

‍Yes, all employees must receive a payslip regardless of their employment type.

Can payslips be emailed?

‍Yes, if the method is secure and accessible. Using a secure platform like Microkeeper’s console is preferred.

What if I didn’t get a payslip?

‍Employees should raise this with their employer. Persistent issues can be reported to the Fair Work Ombudsman.

How long must employers keep payslip records?

‍At least 7 years, as required under the Fair Work Act.

Final Thoughts

Payslips are an essential part of the employment relationship in Australia. They promote transparency, build trust, and are a critical compliance requirement. For growing businesses, automating payslip generation through a platform like Microkeeper not only reduces admin time but ensures employees are accurately and fairly paid.

_{Disclaimer: This entry is for informational purposes only and does not constitute legal or financial advice. For specific guidance, consult the Fair Work Ombudsman or a qualified professional.}