Fair work and payroll

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An overview of current Fair Work and payroll compliance issues for Australian employers

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Fair work and payroll

  1. 1. Tips and tricks for Payroll
  2. 2. Tracy angwin Australian Payroll Association
  3. 3. Agenda 2013/14 changes Fair work Common payroll risks Leverage payroll
  4. 4. What changed 1 July 2013
  5. 5. Not much!
  6. 6. Changes include: Superannuation increase Removal of upper age limit High income threshold increase $129,300
  7. 7. Key rates and thresholds ETP cap increase to $180,000 Tax free redundancy component Maximum super contributions base
  8. 8. National minimum wage $16.37 per hour $622.20 per week
  9. 9. Fair work
  10. 10. What is Fair Work? National body Minimum standards Audits & inspectors
  11. 11. 2012 $51,000 $10,200 Per breach Fair Work $2,200 ATO per
  12. 12. Who (and their clients) is compliant with Fair Work?
  13. 13. National Employment Standards 1. Maximum weekly hours (38) 2. Parental leave 3. Annual leave 4. personal/carers leave 5. Community service
  14. 14. National Employment Standards 6. Long service leave 7. Public holidays 8. Flexible working arrangements 9. Notice of termination and redundancy pay
  15. 15. National Employment Standards 10. Fair work information statement
  16. 16. What happens if you get it wrong?
  17. 17. Emps affected Details Value 5 Falsify timesheets Meal/rest breaks $3,852 - $14,111 What happens if you get it wrong? Hotel Fine $55,900
  18. 18. What happens if you get it wrong? Restaurant Fine $72,000 (including $12,000 for manager) Emps affected Details Value 1 457 visa 60-70 hour week Vulnerable employee $24,217
  19. 19. What happens if you get it wrong? Contracting company Fine $178,750 Emps affected Detail Value 116 Incorrect pay Sham contracting Failing to keep proper record $45,997
  20. 20. What happens if you get it wrong? Retail Fine $206,000 Emps affected Detail Value Single complaint 260 employees Single complaint Employer co-operative with FWA $182,000 wages $24,000 super
  21. 21. contractors vs employees
  22. 22. Contractors Paid for results Uses own equipment Free to delegate Freedom in way work is done Provides services to others Free to accept or refuse work Responsible for financial risk Employees Paid for time worked Do not provide equipment Not free to delegate Cannot choose way work is Recognised as part of busi Must perform their duties Take no commercial risk
  23. 23. Sham contracting • Intentional claim that an employee is a contractor • Don’t be careless! • Recent $166,000 fine • Illegal to dismiss an employee if they don’t agree to be a contractor • Liability remains with the employer
  24. 24. Super on ordinary time earnings
  25. 25. Accessorial liability
  26. 26. What is Accessorial Liability? Relatively unknown provision Fine up to $10,200 per breach Recent prosecution
  27. 27. Record keeping requirements
  28. 28. What records do you need to keep? Time keeping records Payslips Leave records
  29. 29. What needs to be on a payslip? Gross and net amounts Payments and deductions Pay period plus date of pay ABN Superannuation details
  30. 30. PLUS! Delivered within one day of pay Even if employee is on leave In secure format
  31. 31. Opportunity to leverage payroll
  32. 32. For SMEs Payroll is no longer simple software is efficient and cheap Value of payroll is higher
  33. 33. Where to from here?
  34. 34. SME Membership Launched next week Online resources Videos contract Templates Payroll support
  35. 35. SME Membership $30 per month Minimum 12 months
  36. 36. Opportunities Affiliate program Package in fixed fee services
  37. 37. Free weekly newsletter www.austpayroll.com.a u/newsletter
  38. 38. Contact tracy@austpayroll.com. au 9818 1931 0438 086 113

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