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Small business accountants get pay slips right

 


 

For any small business owner, one of the most challenging aspects of the business is managing staff and ensuring that they are happy and productive at work. There are many aspects to the administration of your workforce especially surrounding the employment of staff but one of the key aspects that is often overlooked is the issuing of payslips to staff. Many small business owners may be unaware that the issuing of payslips to staff is compulsory. Not only does sending them out allow you to comply with the law, but it keeps staff informed and prevents disgruntled staff from causing issues within the business. So now that you know its compulsory, here is a list of the minimum requirements for a compliant payslip.

· Your business details, including employers name and ABN.

· Your employees full name as a minimum.

· The period the payment relates to.

· A full breakdown of how the gross pay and net was determined, including separate lines for different categories of pay and the total PAYG withheld.

· The name of the employees superannuation fund and the amount that needs to be paid for that pay period.

· Leave balances do not need to be shown but if an employee asks they must be told what leave they are entitled to.

Whilst most small businesses now issue payslips electronically using programs such as MYOB or Xero, those who still write out manual payslips (although if you are, you need to modernise your business accounting now!) are most at risk of not issuing legally compliant payslips. Payslips should also be distributed in a confidential way so only the employee gets to see their personal pay details. Using a program like MYOB allows you to email payslips directly to employees private email addresses while Xero even grants employees access to their own personal log in where they can download current as well as older payslips at any time thanks to cloud technology. As Xero accountants this method is used within our offices in conjunction with others.

Running a small business and looking out for the little details like payslips can be challenging but by using the right management and accounting tools all small business employers can take much of the stress out of this aspect of their business. Remember, an open relationship between employer and employee is the best way of ensuring a happy and productive team to grow your small business.

For more information on this topic contact mas accountants, your small business accounting specialists based in Surry Hills.

 
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