What are Payslips
A payslip is a document that’s given to an employee with each pay. It shows their total wages earned for a set period. This might be from a salary, hourly wages or commission.
Payslips also list tax withheld and personal deductions made. This includes insurance and superannuation contributions. Payslips are also known as pay stubs, paycheck stubs, or pay advice.
Payslips as a Proof of Income
Your payslips also serves as a proof of income or employment, which is more often than not required when applying for a loan or form of credit. By reviewing your payslip regularly, you can make sure you’ve been paid correctly and better understand your deductions. There are many details included on a pay stub to help you and your employee keep track of payments and deductions. Generally, the items on a payslip can be divide into three parts:
- Basic pay
- Taxes, deductions and contributions
- Net pay