Updated: Jul 2, 2019
There are a number of circumstances where your employer may be paying you in cash, also referred to as "cash-in-hand". Being paid cash-in-hand can often mean that you do not receive all your employee entitlements and benefits such as super, leave accruals and award rates. If you are being paid cash then there are a number of things you need to ensure.
Are you being given a pay slip? You should make sure you receive a pay slip. You also need to check your pay slips to ensure tax is being deducted at the correct rate. Pay slips have to be given to an employee within one working day of pay day, even if an employee is on leave (this is a Fair Work requirement).
Did you receive a Payment Summary? At the end of each financial year, you should also receive a payment summary that sets out how much tax has been deducted for the year. Your payment summary is needed to prepare your income tax return (this will change after the introduction of Single Touch Payroll). Ensure you declare all your cash earnings to avoid any penalties resulting from undeclared income.
Is your Superannuation being paid? If you are being paid cash-in-hand most often your Superannuation is not being calculated or paid. Check with your employer that your Superannuation is being paid and ask for proof.
Are your leave accruals being calculated?
By being paid cash-in-hand your leave accruals may not be calculated correctly or in many instances, not calculated at all. You are entitled to ask at any time for a copy of current leave balances. Many employers will also show these balances on your pay slip.
Are you being paid at the correct Award rates?
A common situation with cash-in-hand payments results in you being under paid. Always ask for a pay slip. You are entitled and must be given one every time you are paid whether in cash or not.
Avoid being paid cash-in-hand. The cash economy has a number of major pitfalls which may adversely affect you. Try to ensure that you are paid directly into your nominated bank account and that you always receive a pay slip.