Timesheets and Payslips

Everyone wants to ensure that they pay their employees the correct wages and allowances. Therefore, it is important that employees provide accurate and timely timesheets, especially for hourly workers or those eligible for overtime.

Timesheets encourage accountability and self-awareness among employees, as they’re more likely to manage their time effectively when they know it’s being tracked.

Payslips are important for employers for several key reasons, both legal and operational. In Australia it is a legal requirement to provide employees with regular payslips that detail their earnings, deductions, superannuation contribution and net pay. Failing to issue payslips can lead to fines, legal action, or other penalties during labour inspections or audits.

And if there is a dispute, they help resolve any confusion over pay, overtime, bonuses, or deductions.

Recently, we were asked to review claims of underpayments where the payslips showed a fixed fortnightly amount was paid, but there were no timesheets to compare what hours were worked and the payslips did not show the hours, only the fixed amount. The employee complained to the Fair Work Ombudsman and claimed he worked overtime for which he was not paid. As it turned out the employer was not paying overtime, the hourly rate used was incorrect in working out the fixed payment, and we had to recalculate the correct amount that should have been paid going back over three years.

If the employee had provided timesheets clearly setting out the hours they had worked, including overtime, then the employer would have been in a position to check the fortnightly pay amount was correct. As it turns out the employee is owed several thousand dollars in unpaid overtime.

We have previously provided a newsletter on what information is required on a payslip and this is available here https://www.primaryemployers.com.au/news/payslips-1

Most payroll packages now allow employees to enter their times directly into payroll. However, if you need a paper form of timesheet, contact Andrew.