How happy employees make happy customers? Keeping your employees happy starts with running your payroll correctly.

1. Happy Employees
Make Happy
Customers

2. Keeping your employees happy starts with running
your payroll correctly. Nothing will get an employees
attention quicker than a mistake in the payroll. In this
report we cover all the different areas of payroll and
how you can ensure your’s is running smoothly.
The Basics
As an employer, you must pay your employees at the
correct rate, as well as any entitlements they are
eligible for. This includes parental leave, sick leave or
overtime rates.

3. The wages and entitlements your employee is eligible
for can depend on:
• their age
• the state where they work
• your industry
• their qualifications
• their work duties and responsibilities.
To help you work out what you need to pay your
employees, the Fair Work Ombudsman (FWO) has
created PayCheck Plus . You can use this online tool to
calculate modern award pay rates for your employees,
including:

4. • base pay rates
• allowances
• overtime and penalty rates
• pay rates per hour
• pay rates for entire shifts.
National minimum wage in Australia
The new national minimum wage will now be $640.90
per week or $16.87 per hour. The increase only applies
to employees that get their pay rates from:

5. • the national minimum wage
• a modern award
• a registered agreement (in some cases).
Using the Right Cloud Platform
Stay compliant
Changes to tax tables, superannuation guarantee rates
and any levies are all taken care of automatically,
without the need to install any updates.

6. Streamlining payroll and super
Pay super contributions for your employees with the
click of a button. File employee tax file number
declarations to the ATO online via your cloud
accounting software. File payment summary annual
reports direct to the ATO from within your cloud
accounting software.
Flexible but powerful
Multiple pay calendars allow you to pay your
employees when you need to. Unlimited earnings,
deductions, reimbursements and leave types to suit the
needs of your business.

7. Inbuilt timesheets
Easily track time and attendance and approve
employees timesheets online, Minimise compliance
risks and increase employee productivity. Employee
hours seamlessly appear in your payroll for automated
calculation and reporting minimising errors
What are you required to provide?
Pitfalls of paying incorrectly

8. The Fair Work Ombudsman (FWO) regularly receives
inquiries from employees claiming underpayment of
wages. These inquiries often form the basis of the
FWO’s decision to audit certain industries, as well as
investigate individual businesses and employers
regarding an employee’s claim that they did not receive
the correct remuneration. This could be as a result of
any employee being paid under the wrong award,
classified incorrectly or not taking into account relevant
allowances.

9. Employers have a legal obligation to correctly pay their
employees the relevant remuneration, including
penalties and loadings, overtime and allowances.
Therefore, it is essential that employers ensure every
employee is paid correctly.

10. It also important for employers paying employees
annualised salaries ensure that they are incorporating
any wage increases (as part of the Annual National
Minimum Wage Review) into the annualised salary to
ensure that such salaried employee’s are better off in
comparison to the applicable award. Paying an
employee an annualised salary does not automatically
exclude them from an award. Therefore, employers
should also be aware of any variations to awards that
may affect wage rates.
Any underpayment of wages or entitlements is a
breach of Federal workplace laws and may incur
penalties, as well as the obligation to pay back any
money owing.

11. What happens if I discover an employee has been
underpaid?
If you have established or suspect that an employee in
your business has been underpaid their entitlements or
wage, then you should call the Telephone Advisory
Service immediately. It is free for members and an
experienced Business Advisor can provide you with
initial help. However, depending on the level of help
required, our Workplace Relations Consultants can
assist you on a fee for service basis and manage the
entire approach, including wage calculations.

12. If it is found that an employee has been underpaid, the
business will be required to pay back any entitlements
owing. In addition, an underpayment of wages
breaches the Federal Fair Work Act 2009 and there may
be penalties that will be incurred.
What are the consequences with the FWO?
The Fair Work Ombudsman (FWO) can pursue a
number of different courses of action if an employer
has breached workplace laws and failed to pay their
employees correctly.
This can range from a contravention letter, an audit,
compliance or infringement notice or enforceable
undertaking through to prosecution in Federal Court.

13. There is detailed information about the different types
of action the FWO can take in the ‘Wage and Record-
Keeping Requirements’ article.
What happens if the payroll is wrong?
Why do I need to provide a payslip?
What if I get the tax or super wrong?
In addition to the potential errors in running the
payroll, let’s have a look at some other areas that
impact the payroll if not done correctly.

14. Rostering
(potential rostering reference and
The impact of not scheduling staff on properly.
What happens if the hours are recorded incorrectly?
How can I stop my employee cheating the system?
(Potential reference material
All the things you need to know about for payroll
You almost have to be superman to keep up with all the
things you need to know about payroll

15. Wages and salaries
Getting it right up front stops infringements and
penalties
Weekly, fortnightly or monthly
Allowances
These depend on the industry and award
Superannuation
Penalties are high when employees super is not
calculated correctly or paid on time.
Quarterly

16. Other payments such as salary sacrifice, workers
compensation, bonus, maternity leave long service
leave
There are a variety of other payments that may be
required from time to time
Payroll Tax
Applicable when your total wage bill exceeds a
threshold amount
Monthly lodgement required
IAS
Applicable for taxpayers who make PAYG instalments.
Generally monthly, but can be weekly for businesses
with a large number of employees

17. BAS
includes the PAYG instalment for the final month of the
quarter
Generally this is quarterly for small business
FBT
A Tax employers pay on certain benefits they provide to
their employees, including their employees’ family or
other associates
Annual Return required to be lodged
PAYG Payment summaries

18. You need to give each of your payees a payment
summary specifying how much you paid them in the
financial year, and how much you withheld from the
payments.
You must send the ATO an annual report
summarising all payments and amounts withheld for
the year
Annual lodgement
https://www.ikeep.com.au/