When was the last time you checked your paperwork? Did you know you’re required by law to keep certain records and issue pay slips to your employees? Don’t put it off any longer. Setting aside time to get your paperwork in order now helps you:
  • audit your pay rates more easily
  • save time on payroll processing
  • avoid on-the-spot fines for not keeping the right records or issuing compliant pay slips.
  • Remember you must keep time and wages records for 7 years.
  Step 1: check general employee records For each employee make sure you’ve got records of:
  • their name and the name of their employer (e.g. Fred Jones or Sunshine Building Pty Ltd)
  • their employer’s Australian Business Number (ABN) (if any)
  • their commencement date
  • whether they’re full-time, part time, or casual.
  Step 2: check pay records Make sure you’ve got a system to easily create records of:
  • pay rates paid to each employee
  • gross and net amounts you’ve paid each pay period
  • any deductions from the gross amount
  • details of any incentive-based payment, bonus, loading, penalty rate, or other monetary allowance or separately identifiable entitlement paid.
  You’ll also need to keep records of superannuation contributions you make including:
  • amount paid
  • pay period
  • date(s) paid
  • name of super fund
  • reason the employer paid into the fund (e.g. a record of the employee’s super fund choice and the date they made that choice).
  Step 3: check leave records
  • You have to keep records of:
  • any leave taken (all types of leave, not just annual leave)
  • how much leave an employee has.
  Step 4: check whether you need to keep other records There are other records you may need to keep, depending on the arrangements you have with your employees. These include:
  • individual flexibility arrangements
  • guarantee of annual earnings
  • ending employment.
  Step 5: check your pay slips You have to give your employees a payslip every time you pay them even if:
  • you pay wages in cash
  • the employee is on leave
  • you pay an employee the same amount every week (e.g. salaried employees).
  For further assistance call the team at Business 360 today.