Why Are Payslips Important?
Payslips. First off, what is a payslip?
A payslip is an important employment document. It’s a document that breaks down an employee’s income and deductions. Additionally, it serves as proof of employment.
Employee payslips are a legal requirement. In terms of Section 33 of the Basic Conditions of Employment Act, employers must provide their employees with the following information, in writing, when they are paid:
- The employer’s name and address;
- the employee’s name and occupation;
- payment period;
- the employee’s remuneration in money;
- the amount and purpose of any deduction made from the remuneration;
- the actual amount paid to the employee; and
- if relevant to the calculation of that employee’s remuneration-
- the employee’s rate of remuneration and overtime rate;
- the number of ordinary and overtime hours worked by the employee during the period for which the payment is made;
- the number of hours worked by the employee on a Sunday or public holiday during that period;
- if an agreement to average working time has been concluded in terms of section 12, the total number of ordinary and overtime hours worked by the employee in the period of averaging.
Employers often do not meet these basic requirements.
Employees can receive their payslip in one of two ways:
- Printed Payslips.
- Secure email portal, or even SMS.
Employers must understand their employee’s requirements when it comes to payslips. Whether it is a basic payslip or detailed employee statement.
Keeping Your Payslips On Record
There is no need to keep payslips for any longer than 6 months. Many people prefer to keep them for longer, but it is not necessary. If you are applying for credit, financial institutions usually require 3 months’ worth of payslips.
Since many businesses now provide digitally secured payslips, it’s easier keep record of them.
However, payroll providers need to keep copies of payslips for three years from the end of the tax year.
Outsourcing Solutions offers a range of professional, pre-printed payslip stationery for your business that is convenient and ready to use. Our payslips match the payslip templates available in Pastel Payroll. At a glance, your employees can see their gross and net pay amounts as well as total deductions, company contributions and fringe benefits.
For more information, get in touch with our expert team today – [email protected]