Payments to employees

When you pay your employees' salaries, wages, bonuses or other kinds of payments, including tips and gratuities, your records must reflect those payments.

If you pay wages with cash, record this in your reconciliation of daily sales and cash payments book.

If your employees receive tips and gratuities we recommend you develop and apply a written policy to deal with tips you collect and distribute. This will ensure your records are consistent and you're meeting your record keeping requirements. At a minimum, this policy should cover how you:

  • collect and record tips you receive from customers
  • distribute tips to your staff (and how often)
  • will resolve any disputes about the policy.

You must keep records that show what tips have been paid to your employees and contractors and what tips you retain.

Following is an example of a payment record that shows wages payments, tax withheld and super guarantee amounts.

Next step:

See also:

Last modified: 15 Feb 2016QC 43046