A payslip is the written record an employer gives an employee each pay period setting out what they earned, what was deducted and what they were paid. The Basic Conditions of Employment Act makes issuing one compulsory.
What it means
The payslip is where gross remuneration, PAYE, UIF and any other deductions are shown line by line, ending in net pay. It is the employee's evidence of how their pay was calculated and of the tax withheld on their behalf, and it must be given even when payment is made electronically.
Where it fits in
Each pay run produces a payslip per employee from that period's calculation. The amounts on it reconcile to the employer's EMP201 in aggregate and, over the tax year, to the employee's IRP5. It is the employee-facing counterpart of the figures the employer reports to SARS.
Key rules
- Required by the BCEA for every pay period, including for electronic payments.
- Must show earnings, deductions, contributions and the resulting net pay.
- Reconciles in aggregate to the EMP201 and over the year to the IRP5.
- Identifies the employer, the employee and the pay period it covers.
