Wednesday, October 27 , 2021

Record Keeping & Payslips: An Employer’s Guide

As an employer, you have a responsibility to ensure that your staff are paid what they are owed, and on time, each payday. To ensure your team continues to work hard for your business and to keep morale up, you need to ensure that you have an efficient payroll system in place. With a payslip template, you can make sure that you include all of the required information in your payslips so that payments are processed on time and your team is happy. 

As well as your responsibilities to your employees, you also have other obligations as an employer. There are a variety of different records that you are legally obliged to keep when you employ a team as an Australian business. These records include information about your employees and details related to timesheets, payslips and employee schedules. 

Let’s take a look at some of the records that you need to keep as an employer in Australia. 

Employment Records

All employers in Australia must keep employment records which you are legally required to keep for seven years. These include employee information such as pay, annual leave and hours worked, reimbursements of expenses incurred through work, workers compensation insurance and the amount paid in superannuation contributions. It’s also wise to keep additional records so you have a comprehensive employment history. Documents such as resumes, contracts and performance reviews can help you to keep track of your employee’s employment history, allowing you to monitor employee progress over time. 

Tax And Superannuation Records

Australian employers are required to keep all tax and super records for each of their employees for a minimum of five years by the Australian Taxation Office (ATO). All employee records relating to tax, calculations of superannuation and how you met your super fund requirements need to be kept and made available to the ATO. Failing to meet these obligations can result in your business being fined or incurring other penalties. 

Payslip Requirements

While paying your employees the right amount, and on time, is crucial you also need to issue payslips and are legally required to do so. To meet the legal requirements, payslips must be provided to your employees within one business day of payment being issued. Payslips must include all the relevant information, including tax withheld and the amount paid. You can issue payslips either on paper or in an electronic format. Be sure to keep accurate records of your payslips to ensure that you can find any information you might need in the future. Failing to issue payslips or include the correct information can result in your business being fined. 

Timesheets And Staff Schedules

You and your employees must agree to the hours of work in advance. Keeping records of your records is the best practice for business owners to ensure you have accurate records of what hours each of your employees worked. Although the roster will show the scheduled hours and breaks for each employee, it is the timesheet that will show the actual days and times that each employee was at work. The payslips you issue your employee will always reflect the timesheet and it’s wise to keep records of your timesheets to ensure there is no confusion with payroll. 

Ensure You Meet Your Reporting Obligations

As a business owner, it’s important you do everything that you can to ensure that your business is operating above board. Keeping accurate records is essential to avoid incurring penalties or fines. However, it’s also a good practice to get into. With access to accurate business records, you will be able to make better business decisions going forward to ensure your organisation continues to thrive. 

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