Ashley Bravington’s Post

Under Section 24 of the Employment Act 1955, the categories of lawful deductions from an employee's wages can be classified as follows: 1. Allowed Deductions ✅: ➡️ These deductions are permissible as mandated by law or employment agreements. Common examples include statutory deductions such as income tax, Employees Provident Fund (EPF) contributions, and Social Security Organization (SOCSO) contributions. Employers are required to make these deductions as part of their legal obligations. 2. Allowed At The Request Of The Employee ✅: ➡️ In this category, payroll deductions are made based on the explicit request of the employee. This may include payments to a registered trade union, cooperative society entrance fees, subscriptions, interest on loans or other dues and also for deductions in respect of payments for the purchase of any shares of the employer's business. Such deductions are initiated by the employee's consent and are often documented to ensure transparency and accountability. 3. Allowed At The Request Of The Employee and with the Permission of the Director General of Labour ✅: ➡️ This category covers deductions that require both the consent of the employee and prior approval from the Director General of Labour. One of it, is in regards to the loan repayments where interest is charged. The requirement for Director General’s permission serves as a safeguard to protect employee rights and ensure that the deductions are justified and reasonable. ⚠️ It is important for both employers and employees to be aware of these categories to ensure compliance with the Employment Act and to understand their rights and responsibilities concerning wage deductions. 💡Proper documentation and communication are key in managing deductions effectively.

"It's just payroll!" "The software takes care of it all for me!" 😏 These are just a few gems I hear all too often. Let me tell you, payroll is NOT just pushing a button and hoping for the best. It’s a fine-tuned balancing act that requires precision, a deep understanding of employment laws, and careful attention to detail. With Australia’s recent focus on 'wage theft,' it’s clear that underpaying employees isn’t as rare as we’d like to think—and ignorance isn't an excuse. In my not-so-humble opinion, payroll is actually more complex (and more important) than other accounting or bookkeeping tasks. Whether you're in NZ or Australia, getting it wrong has consequences. So... Are you sure your payroll expertise is up to scratch? 🤔 Check out Fair Work's latest report on wage underpayments if the title of 'Australian workers back-paid $473m' doesn't get your attention, I don't know what will.

Work and Remiss underpayment of Wages The lack of trust between employers and workers can become a widening gulf; if unlawful underpayment of wages is a demanding issue that stomps on nearly all prominent industries at one point. The risk of negligent recording of hours now means employers can face a jail verdict. The company doesn't want to appear in court and hear that the company's 'systematic failures' is an issue. Down the gurgler goes staff morale and the company's reputation. In tatters is the work practice of workers coming into work and feeling happy to be there. So, it's a move back to the dark ages to clock on and clock off. Employers are additionally frightened by this Employment law in 2024. The passing of the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (Cth) (‘the Act’) in December 2023 has everyone on the up to being taken to court on the interpretation of wage underpayment. Who is telling the truth continues to be legally divisive. Is work becoming such a battleground that everyone has to know Employment law and make diary citations to support their claim of a wages' criminal offence. In the Act, intentional wage theft requires an investigation first. ASX-listed companies and big banks are in a 'been there, done that' phase. Supermarkets like Woolworths and Coles and stores like Bunnings were lashed in the past; for payroll oversights. They don't want to be brought back into court for this. They believe they have learnt their lesson and being legal-minded is what will carry them over the line. Worker entitlements for casuals were specifically protected, via casual conversion to an employer offer, to convert the worker to full-time or part-time status after 12 months under the Act. In white collar jobs, there are emails sent of the work carried out and what to expect from different rostered staff. Most law firms, financial services firms and IT firms allow staff to read emails at the start and end of their shift. In comparison, don't all food joints expect staff to appear at least 10-15 minutes before the shift starts. The minimal number of computers that are made available between workers at fast food joints means iPhones play a bigger presence of ensuring work emails are still timely communication. This subject really raises the work antenna on why communication needs to be an ongoing act. Payroll session lessons can take a company far in warding off these claims of an underpayment of wages. The Australian Maccas class action from the SDA union is pursuing $100 million in backpay for present and former management. They are alleged to have been asked to work without pay. Having to say the oath in court then comes in, as to where the wage compliance landscape as understood by the judge is to be made very clear. Dousing out the flames early on remiss conduct can't be a warning enough. News.com.au: Picture

Under Section 24 of the Employment Act 1955, the categories of lawful deductions from an employee's wages can be classified as follows: 1. Allowed Deductions ✅: ➡️ These deductions are permissible as mandated by law or employment agreements. Common examples include statutory deductions such as income tax, Employees Provident Fund (EPF) contributions, and Social Security Organization (SOCSO) contributions. Employers are required to make these deductions as part of their legal obligations. 2. Allowed At The Request Of The Employee ✅: ➡️ In this category, payroll deductions are made based on the explicit request of the employee. This may include payments to a registered trade union, cooperative society entrance fees, subscriptions, interest on loans or other dues and also for deductions in respect of payments for the purchase of any shares of the employer's business. Such deductions are initiated by the employee's consent and are often documented to ensure transparency and accountability. 3. Allowed At The Request Of The Employee and with the Permission of the Director General of Labour ✅: ➡️ This category covers deductions that require both the consent of the employee and prior approval from the Director General of Labour. One of it, is in regards to the loan repayments where interest is charged. The requirement for Director General’s permission serves as a safeguard to protect employee rights and ensure that the deductions are justified and reasonable. ⚠️ It is important for both employers and employees to be aware of these categories to ensure compliance with the Employment Act and to understand their rights and responsibilities concerning wage deductions. 💡Proper documentation and communication are key in managing deductions effectively.

Could you be accidentally underpaying your staff? This article explores the top 5 ways accidental underpayments can occur and how to prevent them to ensure payroll compliance and avoid costly penalties. https://lnkd.in/gahH6GvQ

🚫 Have you tried to add your workers without SSNs to your payroll, only to be told that they are better as 1099s? 🤔 The truth is that adding your ITIN workers to your payroll is the better option. ✅ Why? Because misclassifying Individual Taxpayer Identification Number (ITIN) workers as 1099 independent contractors can lead to severe legal and financial repercussions. 😱 Here's our latest article if you want a deeper look into the risks and how Baron Payroll can help you add your ITIN workers to your payroll instead. 🧐 https://hubs.ly/Q02spB9p0 #PayrollManagement #ITIN #Compliance #BaronPayroll #WorkforceSolutions

Employee or Independent Contractor, Why Does it matter?  Many people ask about classification of Employee and Independent contractor but they are not sure why they are asking, other than that employers do not need to pay part of the workers’ payroll tax if the workers are independent contractor. It is important to know what you have avoided doing by classifying a worker as independent contractor so that you know what laws you are looking to comply with.  The first question is what rights do employees have? Employee rights are protected by both state and federal law. Florida-specific state rights include: State minimum wage, Unemployment Insurance, Workers’ Compensation, Whistleblower protections, Equal pay, Weapons in the workplace, Domestic violence leave; continued health insurance. The second question is who are employees?  Because employees have right under both Tax Law and Labor law, both IRA and Department of Labor has issued guidance as classification of employees and independent contractor. Yes, you are right to think that neither of the government agency will take employer’s “word” for it. They decide by the nature of the job.  The final rule of Department of Labor defines employees as “all workers who, as a matter of economic reality, are economically dependent on an employer for work. A worker is an independent contractor, if the worker is, as a matter of economic reality, in business for themself. Economic dependence does not focus on the amount of income the worker earns, or whether the worker has other sources of income.

Payroll compliance today is fraught and many companies are discovering (and being discovered) that they have underpaid their workers. Claiming ignorance that the error was due to complex legislation is not an excuse and courts are fed up with that excuse with significant penalties imposed which are intended to deter other organisations from implementing systems which allow for non-compliance with obligations under the Fair Work Act, a modern award or enterprise agreement. Employers, large and small, must check that they have adequate systems and processes in place for ensuring compliance and detecting any errors which require remedial action. This could include improving HR practices, or payroll compliance audits. #payroll #compliance #underpayment #schools #education

🚫 Have you tried to add your workers without SSNs to your payroll, only to be told that they are better as 1099s? 🤔 The truth is that adding your ITIN workers to your payroll is the better option. ✅ Why? Because misclassifying Individual Taxpayer Identification Number (ITIN) workers as 1099 independent contractors can lead to severe legal and financial repercussions. 😱 Here's our latest article if you want a deeper look into the risks and how Baron Payroll can help you add your ITIN workers to your payroll instead. 🧐 https://hubs.ly/Q02spysY0 #PayrollManagement #ITIN #Compliance #BaronPayroll #WorkforceSolutions