What YTD Means on a Payslip
YTD on a payslip means year to date: the running total of each amount since the Australian financial year began, or since the employee started if later. For a broker, the YTD column is the quickest test of whether the salary a client states has actually been paid.
The financial year on a payslip is the same income year the ATO uses for individual tax returns. Every YTD total returns to zero with the first pay of a new financial year and builds again from there. Payroll counts each pay by the date it was paid, so the first YTD total of a year can include days worked before the year began.
Most payslips print the YTD figures in a column beside the figures for the current pay period, often headed “This pay” or “Current”. The current column shows one pay. The YTD column adds that pay to every earlier pay in the financial year.
YTD figures are not a legal requirement. The Fair Work Ombudsman’s list of what a pay slip must show covers the pay period, gross and net pay, deductions and super for each pay, with no year-to-date totals. A payslip without a YTD column can still be compliant, but it gives a lender less to work with.
Read Each YTD Figure
Each YTD figure totals one line of the payslip across the financial year so far. Gross earnings are before tax, while net pay is what is left after tax and deductions.
| YTD figure | What it totals | Before or after tax |
|---|---|---|
| Gross earnings | All pay before tax, including base pay, overtime, allowances, bonuses and paid leave | Before tax |
| PAYG tax withheld | The pay as you go (PAYG) tax the employer has withheld from each pay and sent to the ATO | The tax itself, taken from gross pay |
| Net pay | Gross earnings less tax and deductions, the amount paid into the employee’s bank account | After tax |
| Superannuation | The employer’s super contributions for the employee, paid to the super fund on top of gross pay | Not part of gross or net pay |
| Pre-tax deductions | Amounts such as salary sacrifice, taken from pay before tax is worked out | Before tax |
| After-tax deductions | Amounts such as union fees or a payroll savings deduction, taken from pay after tax | After tax |
Leave balances often sit beside the YTD figures, but they work differently. Annual leave, sick and carer’s leave and long service leave are running balances, usually shown in hours. They carry over from one financial year to the next instead of resetting. The Fair Work Ombudsman treats showing them on a pay slip as best practice, not a requirement.
YTD tax is the PAYG amount withheld so far, not the final tax for the year. The employee’s tax return settles that, using the income statement the employer reports to the ATO.
The employee is not paid the YTD amount as an extra payment. The YTD gross is a running total of pay already received across the year. A YTD gross of $30,000 means $30,000 has been paid in gross wages so far, not that $30,000 is owed.
How YTD is Calculated
YTD gross is the sum of the gross pay on every payslip dated in the financial year so far. Each new pay adds its gross to the previous YTD total, and the same happens for tax, super and each deduction.
A Worked Fortnightly Payslip
This fictional employee earns a base salary of $91,000 and is paid fortnightly. Each fortnight’s base pay is $3,500, because $91,000 divided by 26 pays is $3,500. The payslip below is their ninth pay of the financial year. Three of those nine pays, including this one, carried $600 of overtime.
| Payslip line | This pay | YTD |
|---|---|---|
| Base pay | $3,500 | $31,500 |
| Overtime | $600 | $1,800 |
| Gross pay | $4,100 | $33,300 |
| PAYG tax withheld | $958 | $7,470 |
| Net pay | $3,142 | $25,830 |
| Superannuation | $420 | $3,780 |
The YTD base pay is nine pays of $3,500, which is $31,500. Three overtime payments of $600 add $1,800, so the YTD gross is $33,300. The YTD net pay of $25,830 is that gross less the $7,470 of tax withheld.
Why YTD Can Differ From Base Pay Times Pay Periods
In this example, base pay multiplied by nine pays gives exactly the YTD base pay. Real payslips often show a different total, for reasons such as these:
- The employee started after the financial year began, so fewer pays count towards the total.
- Unpaid leave reduced one or more pays.
- Overtime, allowances, commission or bonuses were added to some pays.
- A pay rise took effect part way through the year, so earlier pays used the old rate.
- Back pay arrived in one pay, such as a backdated pay rise or a shortfall paid after an annualised salary reconciliation under an award.
- Payroll corrected an earlier mistake, which can raise or lower a YTD total in a single pay.
Annualise YTD Income for a Home Loan
To annualise YTD income, divide the YTD gross by the pay periods it covers and multiply by the pay periods in a year. In the worked example, $33,300 divided by nine fortnights and multiplied by 26 gives $96,200.
Some calculators and lenders count days instead. Nine fortnights cover 126 days, and $33,300 divided by 126 and multiplied by 365 gives $96,464. The day count gives a slightly higher figure because 26 fortnights cover 364 days, not 365.
Next, compare the result with the base salary on the payslip and the employment contract. Annualising the YTD base pay alone gives $31,500 divided by nine and multiplied by 26, which is $91,000. That matches the stated salary, and the $5,200 gap to the total annualised figure is overtime.
When the annualised YTD and the stated salary differ, lenders often assess base income on the lower figure. The lower figure is the one both documents support. A higher annualised YTD can include overtime or a one-off payment that may not repeat. A lower annualised YTD can show unpaid leave or a later start date that the contract does not mention.
Separate overtime, commission and bonuses from base pay before you annualise, because lenders apply their own rules to each. Macquarie’s PAYG income guidance for brokers counts up to 80% of regular overtime in non-essential industries and up to 100% in essential services. If that extra income’s YTD covers under three months and other documents do not fill the gap, Macquarie uses the lower of annualised YTD and last financial year’s income.
The length of the YTD period matters too. Keystart’s minimum income documents include one payslip whose YTD figure covers at least three or six months, depending on the income type, so it can annualise the income. For another pay cycle or a different start date, the YTD calculator annualises the figures from any payslip.
Reconcile the Payslip Before Lodging
Check that the YTD totals on two consecutive payslips differ by exactly the later pay. In the worked example, the eighth payslip shows a YTD gross of $29,200. Adding the ninth pay’s gross of $4,100 gives $33,300, which matches the ninth payslip. Run the same check on tax withheld, net pay and super.
A difference that does not equal the later pay means a payslip is missing, payroll made a correction or a figure has been changed. Ask the client for the missing payslip or an explanation from the employer before you rely on the figures.
Then check the details around the figures. The employer’s name and ABN on each payslip must match the employment contract or employer letter and the rest of the client’s employment history for a mortgage. The pay periods must follow on from each other with no gap or overlap, and the pay dates must fit the pay cycle.
Compare the YTD figures with the client’s income statement in ATO online services, which the client opens through myGov. The ATO’s income statement guidance says it shows year-to-date salary and wages, tax withheld and super. The statement is not final until the employer marks it “Tax ready” after the financial year ends, so a small timing difference during the year is normal.
When the YTD figures do not reconcile with the income statement or earlier payslips, tell the lender what differs and what explanation you have. A clean reconciliation shows the documents are consistent with each other, not that the payslip is genuine. If the differences point to an altered or false payslip, the mortgage fraud guide sets out the broker’s checks and how to escalate.
