Employer EOFY Reminders
Do you have employees? Are you ready for 1 July? There are a few things you need to consider to ensure you are complying with all recent changes to the minimum wage and award rates.
Coming up to 30 June, there are a number of things you will need to do if you have employees.
1. Review your employees pay rates
The Fair Work Commission has announced a 3.3% increase to minimum wages following its 2017 Annual Wage Review. The increase will apply to base rates of pay from the first full pay period starting on or after 1 July 2017. The new national minimum wage will be $694.90 per week or $18.29 per hour.
Weekend penalty rates in some awards are also under review including the retail, hospitality, restaurant, fast food and pharmacy awards.
The Fairwork Ombudsman is working on updating their pay tools with the new pay rates. It usually takes the Commission 2-3 weeks to update the pay rates in each award. You can register with the Fairwork Ombudsman to receive email notifications when the new rates are available.
Now is a good time to review what you are paying your employees. Most award rates are higher than the minimum wage and are dependent on the duties the employee performs within your business, so it’s worth reviewing this to avoid any back payments or fines in the future.
2. Issue Payment Summaries
Most businesses will need to issue each of their employees with a PAYG Payment Summary by 14 July 2017 and lodge an annual statement to the ATO by 14 August 2017. You can do this using a paper form, using your payroll software or we can assist you to prepare and lodge these.
3. Upgrade your software
If you are using desktop software like MYOB or QuickBooks you should upgrade your software to the latest version to update the tax tables ready for the first payday after 1 July.
If you are using online software like Xero or MYOB Essentials, these changes will happen automatically for you.
You may also need to update your employees pay rates following on from the rate rises mentioned above.
4. Review your employment agreements
Now is a good time to review the terms and conditions in your employment agreement. Most awards state that you must have a written agreement in place with your workers. Agreements can assist you to clearly spell out to your employees your expectations along with their entitlements. Employment agreements should be re-issued whenever there is a change to their terms and conditions of employment for example an increase in salary, change from casual to permanent or promotion.
Addison Partners HR & Consulting can assist you to work with your employees to reach your business goals while complying with all legislation. We can assist you with any employment related issue from recruitment to termination including drafting agreements, performance management, software implementation and payroll services. Please call Debbie Innes on 02 4995 7300 or email dinnes@addisonpartners.com.au to book an initial consultation.