Why Do Pays Sometimes Change By 1c?

Some payroll apps round once per pay; Lightning Payroll rounds each line item to two decimals, then sums those rounded lines to make the gross. When a salaried employee’s pay is split across multiple items, for example individual leave days, this can differ by one cent compared with calculating the total hours in a single line and rounding once.

Example comparison

Hourly rate $43.08706. Total paid hours 38.00000.

Both pays are based on the same hours and the same rate. Pay A rounds once on a single line, so the gross is $1,637.31. Pay B rounds each leave day line first, then adds them, so the gross becomes $1,637.30. The one cent difference is caused by standard, per line rounding.

What the regulators expect

• No rule on line rounding: neither the ATO nor Fair Work mandates whether wages must be rounded per line or once per pay. Either approach is acceptable if the employee is not disadvantaged.
• Payslips: must show gross, net, and itemised entitlements or deductions. The law does not prescribe a specific rounding method for wage lines.
• PAYG withholding: the ATO provides explicit rounding rules for tax withheld, usually to the nearest dollar. These rules apply to withholding calculations, not to how wage components are rounded.
• Super guarantee: super is assessed on ordinary time earnings and is a quarterly minimum. Small rounding differences between pays are expected; what matters is that quarterly obligations are met on time and in full.

Why Lightning Payroll rounds each line

• Clarity on payslips; line amounts shown to the cent match the values that are summed.
• Consistency with itemised journals and exports; easier reconciliation.
• Common industry practice when pays include leave, overtime, or allowances.

If you need a fixed salary figure every pay

• Accept the one cent variance; this is the simplest and most common approach for salaried staff.
• Or add a small Rounding Adjustment line to bring the gross to the contracted salary.
• Or modify a duration slightly; adjusting a leave duration by one or two seconds up or down can shift where the rounding lands, which can change the cent in the gross.

Key takeaways

• One cent differences arise from per line rounding when pays are split across items; this is normal.
• There is no specific ATO or Fair Work rule that requires a single rounding method for wages.
• Let it stand for salaried employees; or use a tiny rounding adjustment if you must match a fixed figure.

Example figures: rate $43.08706, total 38.00000 hours. Pay A $1,637.31, Pay B $1,637.30.