Is it illegal for the company not to issue payslips?
It is illegal for a company not to issue payslips. The employer shall provide the employee with a payroll recording personal income and withholding income tax, and ask the employee to sign it for confirmation.
Article 10 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that withholding agents shall declare full withholding of all employees in accordance with state regulations, and provide taxpayers with information such as their personal income and tax withheld.
Article 6 of the Interim Provisions on Payment of Wages stipulates that the employer must record the amount and time of wages paid to workers, the name and signature of the recipient in writing, and keep it for more than two years for future reference. When paying wages, the employer shall provide the laborer with a list of his personal wages.
The role of payroll: evidence at a critical moment
Payslip records the total amount and details of employees' monthly salary, including overtime pay, deducted "five insurances and one gold" and personal income tax, which can be reflected in payslip. In the event of a labor dispute, the salary slip can be used as important evidence for labor arbitration.
If there is a labor dispute between the employer and the employee, the employer submits an attendance sheet or salary sheet that has not been confirmed by the employee, and the employee does not recognize such evidence, then the employer is likely to be sentenced to bear the responsibility.
How to avoid risks?
1. If the company has not signed a contract with employees, sign a formal labor contract with employees as soon as possible and confirm the terms in the contract.
2. If the company does not provide insurance for employees, handle it as soon as possible. Insurance is a compulsory requirement of the state.
3. According to the provisions of the labor law and wage accounting system, calculate wages, make payslips on time and let employees sign for confirmation.