First Class Accounts September 2013
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This document provides an overview of payroll tips and tricks including: 1. Key changes to payroll regulations in 2013/14 such as superannuation and wage increases. 2. An introduction to Fair Work regulations regarding minimum employment standards and potential fines for noncompliance. 3. Common payroll risks like incorrect payment of wages, penalties for misclassifying employees as contractors, and record keeping requirements.
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First Class Accounts September 2013
- 1. Tips and tricks for Payroll
- 2. Tracy angwin Australian Payroll Association
- 7. Agenda 2013/14 changes Fair work Common payroll risks Leverage payroll
- 8. What changed 1 July 2013
- 9. Not much!
- 10. Changes include: Superannuation increase Removal of upper age limit High income threshold increase $129,300
- 11. Key rates and thresholds ETP cap increase to $180,000 Tax free redundancy component Maximum super contributions base
- 12. National minimum wage $16.37 per hour $622.20 per week
- 15. Changes include: Parental leave pay admin FBT changes scrapped Timing of super reform
- 16. Fair work
- 17. What is Fair Work? National body Minimum standards Audits & inspectors
- 21. Fine increase December 2012 $51,000 $10,200 Per breach Fair Work $2,200 ATO per penalty
- 23. Who (and their clients) is compliant with Fair Work?
- 24. National Employment Standards 1. Maximum weekly hours (38) 2. Parental leave 3. Annual leave 4. personal/carers leave 5. Community service leave
- 25. National Employment Standards 6. Long service leave 7. Public holidays 8. Flexible working arrangements 9. Notice of termination and redundancy pay
- 26. National Employment Standards 10. Fair work information statement
- 27. What happens if you get it wrong?
- 28. Emps affected Details Value 5 Falsify *mesheets Meal/rest breaks $3,852 -‐ $14,111 What happens if you get it wrong? Hotel Fine $55,900
- 29. 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
- 30. What happens if you get it wrong? Contracting company Fine $178,750 Emps affected Detail Value 116 Incorrect pay Sham contrac*ng Failing to keep proper record $45,997
- 31. What happens if you get it wrong? Retail Fine $206,000 Emps affected Detail Value Single complaint 260 employees Single complaint Employer co-‐opera*ve with FWA $182,000 wages $24,000 super
- 35. 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 done Recognised as part of business Must perform their duties Take no commercial risk
- 36. 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
- 38. Super on ordinary time earnings
- 41. What is Accessorial Liability? Relatively unknown provision Fine up to $10,200 per breach Recent prosecution
- 43. What records do you need to keep? Time keeping records Payslips Leave records
- 44. What needs to be on a payslip? Gross and net amounts Payments and deductions Pay period plus date of pay ABN Superannuation details Pay rate + hours worked
- 45. PLUS! Delivered within one day of pay Even if employee is on leave In secure format
- 49. For SMEs Payroll is no longer simple software is efficient and cheap Value of payroll is higher Not linked to hours
- 52. Where to find leverage You have information that solves problems Internal value