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Tips and tricks for
Payroll
Tracy angwin
Australian Payroll Association
Agenda
2013/14 changes
Fair work
Common payroll risks
Leverage payroll
What changed
1 July 2013
Not much!
Changes include:
Superannuation
increase
Removal of upper age
limit
High income threshold
increase $129,300
Key rates and thresholds
ETP cap increase to
$180,000
Tax free redundancy
component
Maximum super
contributions base
National minimum wage
$16.37 per hour
$622.20 per week
Fair work
What is Fair Work?
National body
Minimum standards
Audits & inspectors
2012
$51,000
$10,200
Per breach Fair
Work
$2,200 ATO per
Who (and their clients) is
compliant with Fair Work?
National Employment
Standards
1. Maximum weekly hours
(38)
2. Parental leave
3. Annual leave
4. personal/carers leave
5. Community service
National Employment
Standards
6. Long service leave
7. Public holidays
8. Flexible working
arrangements
9. Notice of termination
and redundancy pay
National Employment
Standards
10. Fair work information
statement
What happens
if you get it
wrong?
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
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
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
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
contractors vs
employees
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
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
Super on ordinary
time earnings
Accessorial liability
What is Accessorial
Liability?
Relatively unknown
provision
Fine up to $10,200 per
breach
Recent prosecution
Record keeping
requirements
What records do you need to
keep?
Time keeping records
Payslips
Leave records
What needs to be on a
payslip?
Gross and net amounts
Payments and deductions
Pay period plus date of
pay
ABN
Superannuation details
PLUS!
Delivered within one day
of pay
Even if employee is on
leave
In secure format
Opportunity to
leverage payroll
For SMEs
Payroll is no longer
simple
software is efficient and
cheap
Value of payroll is
higher
Where to
from here?
SME Membership
Launched next week
Online resources
Videos
contract Templates
Payroll support
SME Membership
$30 per month
Minimum 12 months
Opportunities
Affiliate program
Package in fixed fee
services
Free weekly newsletter
www.austpayroll.com.a
u/newsletter
Contact
tracy@austpayroll.com.
au
9818 1931
0438 086 113

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Fair work and payroll