Understanding all the different amounts and terms used in a payslip template can be tricky for both employers and employees. We’ve broken down the different sections and explained what they all mean. The Smartly payslip typically includes the following information and can be set up to produce any extra information you require.
The time span in which the financial event – in this case, the working period – took place.
The tax code helps your employer work out how much tax to deduct from your pay, benefits or pension. To find out more information about your individual tax code click here.
The amount of pay the employee received under their employment agreement for an ordinary working week. There are various inclusion and exclusions.
Pay as defined by the employment agreement before deductions.
Allowances that are taxable. Inland Revenue has further details about which allowances are taxable, and which aren’t.
Allowances that are not taxable. Some examples can be clothing and meal allowance. You can find more information on the IRD website on what can be non-taxable.
One off payment
Special payments are usually made to the employees irregularly. An example of a special payment may be overtime.
A compensation payment. An employee may have been laid off or has decided to leave the company, and they would then receive their final payment.
The total income, before any deductions like Kiwisaver contributions.
Year to date
The time period starting from the beginning of the current year. This is the financial year.
Any deductions that are made from an employee's pay, i.e. KiwiSaver.
Stands for “Pay As You Earn“. Deduction of income tax from an employee’s wages before paying them to the employee. The deduction is then sent to Inland Revenue.
Deductions made for student loan payments.
Deductions made for child support.
A sum that can be offset against a tax liability.
Amount after all deductions. This is the amount the employee receives.
Any extra benefits the employee receives.
The balance of leave owing.
Primary bank account
The employee's nominated bank account into which payment is made.