Monday 11 March - Creating Confidence In How People Are Paid
Payroll Compliance - Stage 3 tax cuts
The stage 3 tax cuts have now been passed by both houses of parliament. Effective the start of the next financial year, 1st July 2024 there will be an update to the Tax tables. Under the recently passed legislation, the tax brackets will be:
*Does not include Medicare levy
Ensuring superannuation guarantee compliance
In the complex landscape of Australian payroll, ensuring compliance with the Superannuation Guarantee (SG) obligations is a task that cannot be overlooked. The intricacies of legislation surrounding superannuation contributions demand vigilant attention and a proactive approach from businesses to avoid the pitfalls of non compliance.
The Imperative of Compliance
At the heart of payroll operations lies the responsibility to ensure that employees’ superannuation contributions are calculated accurately and paid on time. The Australian Taxation Office (ATO) enforces strict guidelines for the Superannuation Guarantee, requiring employers to contribute a minimum percentage of ordinary time earnings to eligible employees’ superannuation funds. Failure to meet these obligations not only undermines employees’ retirement savings but also exposes businesses to significant penalties and charges.
The consequences of non-compliance can extend beyond financial penalties. It can severely damage an organisation’s reputation, employee trust, and morale. As seen in several high-profile cases, such as the Queensland Health payroll debacle, the ramifications of payroll errors can have a lasting impact on an organisation’s public image and internal dynamics.
Strategies for Maintaining Superannuation Compliance
The importance of Superannuation Guarantee compliance cannot be overstated. It is a fundamental aspect of payroll that requires diligent oversight and continuous improvement. By adopting a proactive and informed approach, businesses can ensure that they not only comply with legal requirements but also contribute positively to their employees’ future well being. In the realm of payroll, compliance is not merely a regulatory obligation—it is a reflection of an organisation’s integrity and its commitment to its workforce.
Australian Payroll Summit -2024
Tickets to attend the event in person are now exhausted. Virtual tickets can still be purchased. For more information on virtual tickets - click here.
Australian Payroll Summit - Speaker Lineup
Christopher Smith - The Fair Work Ombudsman
Scott Sargent - Australian Taxation Office
Preparing for the Future: The essential guide to payroll compliance checks ahead of wage theft legislation
As we approach the implementation of the Wage Theft legislation set to go live on 1 January 2025, it’s an opportune moment for employers to re-evaluate the compliance status of their payroll operations. The introduction of this legislation marks a significant shift in how payroll discrepancies, intentional or not, are viewed and penalised under Australian law. This impending change serves as a critical wake up call for organisations to assess, and if necessary, improve their payroll systems and processes to ensure full compliance.
The need for a payroll compliance review
The core of the Wage Theft legislation is to curb the underpayment of employees, a scenario that has, unfortunately, been all too common in many industries. With hefty fines and potential reputational damage on the line, the cost of non-compliance could be significant. It’s not just about the financial implications; the trust of your workforce is at stake. Employees need to feel confident that they are being remunerated fairly and in accordance with the law. This confidence is foundational to a positive organisational culture and employee satisfaction.
A payroll compliance check is not merely a financial audit; it’s a comprehensive review of your payroll practices, systems, and outcomes. It involves verifying that all employees are classified correctly, paid accurately for the hours they work, and receive the entitlements they are due. This check should also ensure that payroll records are kept in line with legislation, to avoid any potential disputes or claims of wage theft.
Understanding the landscape
Australian payroll is notoriously complex, with regulations that vary not just at the federal level but also across states and territories. This complexity underscores the importance of having a robust payroll system that can navigate these intricacies efficiently. With changes like the Wage Theft legislation, the landscape is becoming even more challenging to navigate without a clear understanding of the legal requirements and a commitment to meeting them.
Proactive steps towards compliance
Engage a specialist: Consider engaging with a payroll compliance specialist who can provide an unbiased view of your current payroll practices against the requirements set forth by the new legislation. This step is crucial in identifying any gaps or areas of risk that need addressing.
Educate your team: Ensure that your payroll and HR teams are well informed about the implications of the Wage Theft legislation. Continuous education and training on changes in payroll legislation can empower your team to manage payroll effectively and compliantly.
Leverage technology: Modern payroll systems can provide safeguards against non-compliance. If your current payroll technology is outdated or lacks the capability to handle the nuances of Australian payroll requirements, it might be time to consider an upgrade. A system that automates calculations and processes can be a valuable asset in maintaining compliance.
Document everything: Proper documentation goes a long way in proving compliance. Ensure that all payroll processes are documented, and records are maintained meticulously. This not only aids in transparency but also in defending your organisation should any disputes arise.
Regular reviews: Compliance is not a one time achievement but an ongoing commitment. Regularly scheduled payroll reviews can help catch and correct any discrepancies before they escalate into more significant issues.
The introduction of the Wage Theft legislation is a reminder of the critical role of payroll in maintaining an organisation’s integrity and its relationship with its employees. As the deadline approaches, employers are urged to take a proactive stance by conducting thorough payroll compliance reviews. This is not just about avoiding penalties; it’s about fostering a culture of fairness, transparency, and respect for the workforce. By ensuring your payroll operations are in line with legal requirements, you safeguard your organisation against the risks of non-compliance and contribute to a more equitable workplace for all.
Payroll - FAQ
Question: Can I roster an employee to work on a Public Holiday?
Answer: Not automatically. Employers must first request the employee to work the public holiday and if agreed then they can roster them. Employers must ask workers if they want to work public holidays and cannot just automatically roster an employee on, according to a landmark court ruling that will apply to all workplaces regardless of what is in contracts or agreements.
In a judgment delivered just days before the Easter holidays 2023, a full bench of the Federal Court held that BHP’s internal labour hire outfit, Operations Services, breached the Fair Work Act by requiring miners to work on Christmas Day and Boxing Day. The court affirmed the national employment standards (NES), which override contracts, awards or enterprise agreements, mandate that employers make reasonable requests to work public holidays. A roster or contractual requirement did not count as a request. An employer could still require the employee to work on a public holiday if the employee’s refusal was unreasonable given the nature of the work, reasonable employer expectations, the type of employment and the level of pay.
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Payroll Training - Spotlight
Elevate Your Understanding of Industry Awards!
We understand the importance of staying informed and compliant with industry awards to ensure your business thrives. That's why we developed our range of comprehensive courses offering in-depth insights into the intricacies of these awards, equipping you with the knowledge and expertise necessary to navigate complex regulations effectively.
The courses we currently offer on Awards are:
Upcoming training dates:
21 MAR - Virtual | Terminations Masterclass
22 MAR - Virtual | Long Service Leave Masterclass
27 MAR - Virtual | Payroll Tax Masterclass
4 APR - Virtual | Superannuation Masterclass
5 APR - Virtual | Understanding Modern Awards
Want more information about any of our courses download our Training Guide
Upcoming 2024 public holidays
Below are the public holidays over the next few months in each state and territory.
Go to our 2024 public holidays page for a full list of public holidays in your state or territory this year.
Australian Capital Territory
New South Wales
Northern Territory
Queensland
South Australia
Tasmania
Victoria
Western Australia
Payroll Did You Know? (Fixed Term Contracts)
Fixed Term Contracts – Did you know that employers are required to provide the Fair Work Fixed Term Contract Information Statement (FTCIS) to all employees’ engaged on fixed term contracts?
Free Webinar - What you need to know about a payroll reviews
Join Tracy Angwin and a panel of specialist payroll consultants for an invaluable insight in to the complexities of payroll compliance and process reviews.
Date: 11 April, 2024
Time: 13:00
To reserve your spot - click here.
Administration | Accountant | Business |
9moHannah Fairbairn