Different annual salary to actual contract

Maryland

Hi there,

 

On my payslip generated from MYOB, the annual salary showed is a few cents less than my actual annual salary that was agreed on the contract, and I was told that this is because I will be overpaid if the exact amount was to be entered. I would like to know if this is true? 
Thank you. 

Steven_M

Hi @Maryland 

 

The annual salary amount listed on payslips is the value that is listed in the employee's card >>Payroll Details>>Wages section. 

 

For hourly employees, this value is calculated based on the listed hours in the <Pay frequency>pay period multiplied by the hourly rate listed on the card multiples by the number of pay frequencies within a standard year i.e. weekly = 52, fortnightly = 26, monthly =12... A working example is for an employee that is paid $19.50 per hour and works 28 hours each week it would be (19.50 x 28) x 52 = $38,532

 

As the annual salary is based on a standard calculation there could be some differences to the amount the employee is actually paid in the year. For example, what happens if there 53 weeks in a payroll year? What happens if the employee has an increase in pay rate through the year? What if the employee works fewer hours in the year? Generally speaking, for these reasons and others the annual salary value is a guide value and may not equal directly what the total annual salary of that employee.