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Simple, effective, customizable payroll, leave and expense management for SMEs

Pay slip customization

What should be shown on the pay slip? You decide!

by Usamah Jamaludin

So, we wanted to add further HR policy localization to Australia and New Zealand, and we realized that their pay slips are a little different. Granted, different countries would have different earnings and deductions (or what we call as 'pay components' in Kitikiti HRM) - but there are also details on the pay slip which we didn't find in previous localization (or probably we didn't look hard enough :P).

Of course, for most employees it's all about the take home pay amount - but for employers specifically, not quite!

Shocked employer

From the Australian Fair Work Ombudsman, following are the sample items that should be included in an Australian pay slip:

  • the employer’s name (e.g. XYZ Pty Ltd trading as XYZ Pie Shop)
  • the employer’s Australian Business Number (if applicable)
  • the employee’s name
  • the date of payment
  • the pay period (the period that the payment is for eg. 24/3/12 to 30/3/12)
  • the gross pay and net pay
  • loadings, allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be singled out
  • if the employee is paid an hourly rate:
    • the ordinary hourly rate
    • the number of hours worked at that rate
    • the amount of pay at that rate
  • if the employee is paid an annual rate (salary), the rate as at the last day in the pay period
  • any deductions from the employee’s pay, including:
    • the amount and details of each deduction
    • the name, or name and number of the fund / account the deduction was paid into
  • any superannuation contributions paid for the employee’s benefit, including:
    • the amount of contributions made during the pay period (or the amount of contributions that need to be made)
    • the name, or name and number of the superannuation fund the contributions were made to.

Yup. That's quite a lot of things to be shown on a piece of paper. Well, even though Kitikiti HRM has yet to check all of the above, we have however made our first step, with the Pay Slip customization feature.

Accessing pay slip customization feature

Pay slip customization is a company-wide configuration - hence it will be applied to all pay slips. As such, we have extended the General Payroll Configuration section to also accommodate customization options for pay slips.

To access the General Payroll Configuration, simply go to

Administration > Payroll Configuration > General Payroll Configuration

Accessing pay slip customization

Most probably, you will see no existing pay slip customization. However, in the future we will introduce automatic HR policy localization which will also include what details should ideally appear on your pay slips - based on the country you signed up with. So here's how it would look like:

Initial pay slip customization

No worries. You can easily start customizing what should appear on your pay slips by simply editing the General Payroll Configuration. You will see various options for the following groups of information:

  • Company properties
  • Employee personal data
  • Leave balances

Pay Slip customization options

We'll cover what details you may want to show on the pay slips in the later section.

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Company details on pay slip

We previously released the Company Properties feature, which was partially meant for this pay slip customization exercise. For example, as per the above's recommendation by the Australia Fair Work Ombudsman, an Australian pay slip may need to show the company's Australian Business Number. With Kitikiti HRM, this is easy. Following are the simple steps you need to perform:

  • Define a Company Property called 'Australian Business Number', and set its value.

Australian Business Number defined

  • Your Company Properties will appear under the 'Company properties to show on pay slip' field.
  • Check the 'Australian Business Number' option

Australian Business Number checked

  • Any pay slip you generate / reset after this will show the 'Australian Business Number' for your company. In general, the selected Company Properties will be rendered at the top of the pay slip, along with common company details such as company name.

Australian Business Number rendered on pay slip

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Employee details on pay slip

Employee details are basically Personal Data. In Kitikiti HRM, similar to Company Properties, you can also define your own specific employee data types, such as employee's T-shirt size, cubicle number or even favorite color.

But practically, we use Personal Data to define and store localized employee HR data such as retirement fund reference number, which may be termed differently for different countries. For example, in Malaysia it's the EPF number, in Singapore it's just the IC number and in Australia it's the TFN (Tax Filing Number) when it comes to your Superannuation fund(s).

Here's Personal Data Types, accessible via Administration > General Configuration > Personal Data Types.

Personal Data Types

Here's Personal Data, for a sample employee, accessible from the employee's profile > Personal Data. Observe how they're based on what's initially defined as the company's Personal Data Types.

Personal Data

With the following two links you can read more about Personal Data Types and Personal Data.

Circling back to the Pay Slip customization feature, you can now make visible important reference numbers such as above for easy lookup by the employees.

  • Define a Personal Data Type called 'Tax Filing Number'. This will ensure that all employees now have a 'Tax Filing Number' field to fill in
  • Your Personal Data Types will appear under the 'Employee personal data to show on pay slip' field.
  • Check the 'Tax Filing Number' option, or anything else you'd want to show. Sometimes, it helps to also show employees to which bank and account number we're banking in the dough

Personal Data Types to show

  • Any pay slip you generate / reset after this will show the 'Tax Filing Number' and any other Personal Data Types you've chosen to make visible for all employee pay slips. The employee-specific Personal Data will be rendered after the cumulative YTD (year-to-date) values for the earnings and deductions. Observe the values for 'Tax Filing Number', 'Bank' and 'Bank Account Number' below:

Personal Data shown on pay slip

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Leave balance details on pay slip

Even though we do have Leave Balances Report, we understand that sometimes employees are only interested only one kind of 'report' from HR / Admin / Finance - the pay slip! - c'mon - we can't wait to check our pay slips every time time even though we know we almost always get paid the same amount at each pay run (unless you're working variable hours, or getting bonuses!).

So why not also include the important leave balances on the pay slip as well? Wouldn't it be nice to also know you've got a whole lot of unutilized leave as you're discovering that handsome bonus payout in the same pay slip? Mmm hmm... we're gonna go for that luxury cruise baby!

Cruisin' baby!

Here's how you can show those leave balance details on the pay slip:

  • Ideally, you would already have the important Leave Types defined at this moment, such as Annual Leave and Sick Leave. If not feel free to read about them here.
  • Your Leave Types will appear under the 'Leave balances to show on pay slip' field.
  • Check the Leave Types you want to show balances for.

Leave types to show

  • Any pay slip you generate / reset after this will show the balance details, next to the Personal Data section (if any), for the Leave Types you've chosen to make visible for all employee pay slips.
    • Balance is basically the amount of leave you can still apply for
    • Applied hours is the amount of leave you've already applied for
    • Forfeited hours is the amount of leave that you were entitled to, but didn't apply for, and has since expired
    • The hours are calculated as of the end date of the pay run period. If the period ends on 31st July, the number of balance hours, applied hours and forfeited hours are scoped only up to 31st July

Leave balance details shown

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Recommendations

To show or not to show on the pay slip? That is the question.

Shakespeare

Well from what we learned (and we're always learning something new), perhaps the following points can be a mechanism to decide:

  • Details to show
    • If it's legally mandated in your country to show certain details on the pay slip, well, you better show them!
    • Think of the pay slip as a handy document whenever you (or the employee) have some errands to run at any one of the statutory bodies (e.g tax authority, retirement fund agency etc). It's nice to have information such as your Tax Filing Number on the pay slip in those cases!
    • And as mentioned earlier - sometimes employees just simply don't bother to login to the HRM system to figure out their leave balance. So you may want to instead update them on their current balances at each pay run, thru the pay slip
  • Details not to show
    • Well, you probably don't want to show everything. Remember that the pay slip should ideally be just a simple one page document. Honestly, we've yet to see (and understand) why pay slip should go into multiple pages...
    • Also, don't show anything that's irrelevant. You may track employees' T-shirt sizes as part of their Personal Data, but that's not something you need to show on the pay slip
    • And for the leave balances, you probably want to only show balances to the commonly applied ones e.g Annual Leave, Sick Leave, PTOs. Avoid mostly static / unused ones like Study Leave, as the pay slip document has limited, precious real estate to show information

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Sign up for a free account on Kitikiti HRM!

We will be more than happy to assist you with your company's setup, and we'll also throw in 2 months of free usage!

No credit card required for signup, and no annoying demo appointment to be set. You get to use it immediately upon signup.

Try out Kitikiti HRM at your own pace - and you can always contact us via the support chat widget.

Even if you decide not to use payroll - the leave and expense modules are FREE to use, regardless of the your company size.

Finally, if you have 10 or less employees on payroll - guess what - everything is FREE! We want to grow with you!


Leave carry over

Keep rollin' rollin' rollin'...

by Usamah Jamaludin

Free HRM software subscription for the whole of 2019!

Yup, Santa is back!

by Usamah Jamaludin