Single Touch Payroll (STP) – What Small Business Owners need to know

Single Touch Payroll (STP) – What Small Business Owners need to know

Single Touch Payroll (STP) is a way of electronically sending tax and super information to the ATO each time you pay your employees. For employers of 20 or more employees, this was compulsory from 1st July 2018.

On 12th Feb 2019, parliament passed legislation to extend STP to ALL employers effective 1st July 2019.

What does this mean for you?

This means the details of all salaries and wages payments made on or after 1st July 2019, must be electronically uploaded to the ATO either on or before the date paid to the employee.

  • Your payroll cycle will not change. You can still pay your employees weekly, fortnightly or monthly.
  • Your payment due date for PAYG withholding and super contributions will not change. However, you can choose to pay earlier.
  • When you report to the ATO through Single Touch Payroll, your employees will be able to view their year‑to‑date tax and super information through myGov.
  • If you have recorded all payments through STP then you do not have to provide your employees with a payment summary at the end of financial year as the ATO will make that information available to employees through myGov. There are still end of year processes required but it can all be done through your STP upload.
  • In time you will also have the option to invite your employees to complete Tax file number declaration, Superannuation standard choice form and Withholding declarationonline.

 

Deferrals and Exceptions

The following groups are under further consideration by the ATO

  • Micro employers (those with less than 4 employees)
  • Closely Held entities (only family members employed)
  • Companies who only employ Directors paid annually
  • Employers disadvantaged by lack of access to digitial technology

Note: the ATO is currently working with practitioners and small business owners to better describe and understand the needs of these segments. The aim is to develop more tailored solutions for these segments

How do I get ready?

1.Talk to your agent

2.Talk to your software provider.

  • If you process payroll yourself using a registered payroll / accounting software, then contact your software provider for instructions on how to enable STP as this is not automatic. Plus you need to advise the ATO that you will be processing STP yourself, and provide them with your Unique Software ID number, otherwise referred to as their SSID number.
  • For ATO instructions for Reporting through STP please refer https://www.ato.gov.au/Business/Single-Touch-Payroll/Report-through-Single-Touch-Payroll/

3. Not currently using payroll software – don’t be alarmed. The ATO is not insisting you purchase software.

  • The ATO put out a market request for product proposals to offer low-cost STP solutions. Many companies have replied.
  • The solutions are required to be affordable (costing less than $10 per month), take only minutes to complete each pay period and not require the employer to maintain the software.
  • These solutions will best suit micro (with one to four employees) who need to report through STP, but do not currently have payroll software and may include mobile apps, simple reporting solutions and portals.
  • More details will be available closer to the time

Please refer the below link for further information

Fresh HR Insights Pty Ltd have a Payroll Expert able to assist all our clients not only with payroll questions and Single Touch Payroll but also in regards to BOOT tests (Better Off Overall Test) – this applies when looking at paying increased annual salaries or increase hourly rates in lieu of paying the conditions in an award (Award Flexibility) 

  1. The BOOT requires every existing and prospective award covered employee to be better off overall.

  2. The BOOT involves the making of an overall assessment as to whether an employee would be better off under the Employment flexibility agreement, which necessitates identification of the terms in the agreements which are more and less beneficial to the employee than under the relevant award.

  3. The overall assessment required will essentially be a mathematical one where the terms being compared relate directly to remuneration.

The BOOT test essentially ensure that you are not underpaying an employee. We will be covering this in more detail shortly as we leaunch this as a new offering to Fresh HR Insights. 

Domestic and Family Leave Policy

Domestic and Family Leave Policy

This Policy outlines the leave and support entitlements offered to employees who are subject to domestic or family violence.

This policy has been prepared in response to the recent legislative change, effective from 1 August 2018, which requires all modern awards to include a clause that entitles all employees (including casuals) to five (5) days of unpaid domestic and family violence leave.

Award free employees are not yet entitled to unpaid domestic and family violence leave, but some businesses may find it administratively easier to implement this policy for all staff.

What is family or domestic violence leave?

Unpaid family or domestic violence leave will be available in the event that the employee needs to do something to deal with the impact of the family and domestic violence and it is impractical for them to do it outside their ordinary hours of work.
 

For example, making arrangements for their safety or the safety of a family member (including relocation), attending urgent court hearings, or accessing police services.

How to calculate and accrue the leave

Five days of unpaid leave will be available at the commencement of each 12 month period rather than accruing progressively during a year of service. The leave will not accumulate from year to year.

This entitlement is unique in that, the full 5 days of unpaid leave will be available to part-time and casual employees. This is different to some other forms of leave (eg annual leave) which are not provided at all to casual employees.

Options for employers

The policy also provides employers with an option to provide their employees with additional entitlements (above and beyond what is legislatively required). For example, employers may wish to provide paid domestic and family violence leave or allow their employees to access paid personal/carer’s leave entitlements for reasons related to domestic and family violence.

Before using or implementing the leave policy, please ensure that it is consistent with any enterprise agreement, contract, or award which applies to the employees in your workplace.

Risk Management – the importance of training about workplace issues such as Diversity, Bullying and Sexual Harassment

Risk Management – the importance of training about workplace issues such as Diversity, Bullying and Sexual Harassment

Risk Management – the importance of training about workplace issues such as Diversity, Bullying and Sexual Harassment

Risk management or risk assessment has always been in vogue in the business world but recently it has seen a major shift in its meanings and multitude in workplace’s on the Gold Coast. New dimensions have been added to risk assessment and management in training employees. Diversity, bullying and sexual harassment have been relatively new additions to the risk management but vital additions.

Part of these new risk management dimensions are rooted in the plurality of the workforce, expansion of the businesses overseas, globalization of the corporate giants and fair work compliance. Modern workplaces are fast evolving to cater for the integration of multi racial workforce, genders and languages. A modern entrepreneur may have to deal with a workforce that has varied cultural needs, diverse racial requirements and conflicting gender biases. All these dimensions have a serious potential of conflict within a workplace and may practically be responsible for the development of bullying culture within a workplace, if left unchecked or tolerated.

The content of this article deals with the importance of training to handle and deal with the workplace issues like diversity, bullying, sexual harassment and mitigation of risk.

The genesis of Risk management training of employees about workplace issues such as diversity, bullying and sexual harassment

  • No two workplaces can be exactly same as far as the risk management is concerned. As an employer, the first step to training employees in risk management is to identify the likely trouble spots and friction points that have the potential to cause trouble in near or long term. Near and imminent risks need to be addressed at priority.
  • Explaining the rules, laws and regulations to all the employees pertaining to diversity, bullying and sexual harassment is the first and most crucial step in risk management. Business penalties to violations and their strict application would help in fending off most violators. All employees must be made to understand the zero tolerance policy of the workplace in connection to these issues.
  • Displaying of workplace policies in a positive and prominent manner at visible places like billboards, café and refreshment places may serve as a constant reminder to abstain from such unwanted workplace behaviors and address fair work issues.
  • Train your employees in open communication to tackle these issues as soon as they occur rather than tolerating it for long before coming up with a complaint. Such scenarios can become scandalous and bring bad name to your business or workplace (litigation in worst case scenarios).
  • Training new employees on risk management and help them merge with the existing workforce in a positive manner. Make a clear mention of the company policies on these issues and the penalties imposed in case of misconduct. The training may as well refer to the system of rewards that come with the compliance to encourage positive behaviors.
  • It is perfectly sensible to hire professional trainers and video tutorials to explain diversity, sexual harassment and bullying. Such material may be made available on company portal for the employees to refer to at ease.

Employers need to be aware that they have an obligation under the workplace Health and Safety Act to protect their employees. If you need more advice or have concerns you should contact an expert such as Fresh HR Insights Pty Ltd. Phone us on 1300 332 322

The value in having an employee handbook

The value in having an employee handbook

The value in having an employee handbook

HR outsourcing is the new money saver in a world where you are constantly looking for ways to save money. Organisations have gone to an extent where only their HQ is in one place and all other products are being manufactured and packaged in other countries or locations to save costs.

This is where the beauty of human resource outsourcing comes in. In a world like this the value of having an employee handbook or ready reference is of utmost importance. This is especially true for small business HR. Amidst all this madness, Fresh HR Insights as Gold Coast’s HR Consultant stands out as they provide you with the ultimate bible on the way that you do business. 

The first and foremost question that may arise is the actual need for an employee handbook.

But why do you need one you ask??

  • If you have an employee you instantly inherited a raft of legal obligations that you must fulfil. With most of these legal obligations if something goes wrong the first thing the courts will ask you is what was your written policy on this issue
  • A well-drawn Employee Handbook can be an important record that will assist and support you as an employer, should any legal issues or claims be brought against you
  • A well-written handbook ensures your employees know your expectations, clearly understand the rules of conduct in your company, and are aware of the benefits to which they are entitled
  • An employee handbook represents an important communication tool between your company and your employees
  • An employee handbook leaves nothing to chance and can be used as a bench-marking tool for performance

This is an essential tool for the formulation of a company’s policies and procedures. The performance and conduct of outsourced personnel are heavily dependent upon the input and output of this handbook.

To develop this handbook one needs expert HR advice from professional HR services like what Fresh HR Insights provides as a Gold Coast based HR Consultant. They are human resource specialists with expertise in fair work issues. They have expert HR teams that help Small Business HR departments formulate policies and procedures for outsourcing and developing the employee handbook. They are also experts in developing innovative solutions for your HR problems. Not all small business HR teams understand the challenges they may face while handling outsourced employees. Gold Coast HR Consultants, on the other hand have developed professional HR services that will make your handbook a tool for easing up your HR worries.

We will not only handle your current outsources employees, but have an expert HR recruitment process. The new recruitment process is time taking and may deplete a small business HR department of its resources. Therefore, professional HR services like what we provide give you a fresh recruitment policy along with help in the complete hiring process.

The performance and conduct of these new recruits are also monitored so the managers at the top level in the company have a complete picture of how each and every task is being carried out. This big picture was not always available to managers and top hierarchy as the outsourced employees worked in total darkness. Gold Coast HR Consultants will help you get rid of this old problem. Not only will they help you get rid of this, but will also help throughout the process of recruitment and the challenges further ahead.

The best thing about this expert HR facility is that you can buy their services on whatever frequency you require. It ranges from professional HR services on an hourly basis to contractual basis. You can hand over your entire small business HR department over to us or collaborate with our professional HR service providers to formulate and use the outsourced employee handbook. Therefore, if you are in need of such a professional service that can help you not only with finding the right people to do the job, but also keep track on their progress and help you attain professional excellence while doing so.           

Customised Employee Handbooks for all Business sizes, Industries, locations across Australia and culture’s 

We have 3 options when it comes to our Employee Handbooks. From a Simple handbook through to a Comprehensive Employee Handbook. ALL our Handbooks are customised to your specific Business and Industry. We do not sell generic handbooks or off the shelf solutions. We FIRMLY believe in a personal service and bringing the HUMAN back into Human Resource Management.

If you are undecided about whether to invest the time in creating a handbook, consider some of the other uses for a handbook in addition to communicating important information to employees.

Provided the appropriate content is there, the handbook can serve a number of purposes:

  • A motivator. A handbook can give employees a sense of being a part of something larger. If your handbook includes information about the business’s history and goals, it can provide a positive motivation for keeping employees excited about their jobs and involved in the company’s success.
  • A reference. With a handbook, everyone knows the rules of your workplace. When an employee breaks a rule, you can refer to the handbook. It helps make enforcement and discipline easier.
  • Your shield from charges of discrimination or unfair treatment. If discrimination or unemployment claims are brought against your business, your handbook can provide persuasive evidence that you had clear, reasonable rules against certain conduct which were communicated to employees and fairly enforced.
HR policies and procedures

HR policies and procedures

HR policies and procedures allow companies to be consistent with their values whilst following their HR policies and procedures. Often, many workplaces encounter issues where staff were unaware of a particular policy that they have breached, with lack of communication being a common excuse. HR policies and procedures allow companies to be consistent with their values whilst following their legal obligations as an employer. 

What you may not know is that having the policies is not enough. If you buy Generic Policies and Procedures and think you are covered think again!!!! 

It is imperative that workplaces have accessible and well-communicated HR policies and procedures which allow employers to properly manage staff conduct. These policies do not need to be particularly complex or numerous – merely effectively communicated and adhered to.  A comprehensive employee induction and regular training sessions on HR policies and procedures minimise potential misconduct within the workplace.

Here’s why it is so Important:

  • An employer that failed to clearly state in its policies that sexual harassment is illegal has been found vicariously liable for an employee’s inappropriate conduct.
  • In the recent case of Keegan v Sussan Corporation (Aust.) Pty Ltd1an employee was awarded just under $240,000 in damages after being bullied for 11 days. This case demonstrates how important it is for employers to proactively respond to all workplace bullying complaints and have policies and procedures in place to manage workplace conduct
  • Employers that fail to take action to protect their employees from workplace bullying and harassment could be sued for negligence, as has been proven in a recent decision by The Supreme Court of Victoria to award $1.3 million in compensation to a former road construction worker

I have recently spoken to a client that was approached by another provider – when they explained how Fresh HR Insights Pty Ltd not only designed customised policies and procedures, that we took the staff through the Policies and Procedures, showed a Video on Bullying in the workplace, implemented tool box talks to enforce the importance of the company policies and procedures, and got them to sign an acknowledgement. The other provider said “gee we just give you the policies, it’s not up to us to Implement” 

At Fresh HR Insights it is personal. We are there to support and protect you and your business against workplace issues. We do not offer off the shelf generic policies and procedures and employee manuals. We get to know you and your business and implement what is a best fit for you. And we are also HIGHLY qualified 

Call us today for a no obligation chat on 1300 332 322
For all Small Business HR Audits and General Advice click HERE

Are your workplaces up to scratch?

Are your workplaces up to scratch?

With continually developing workplace laws and increasing penalties for non-compliance, it is becoming more important to stop and consider whether your workplace practices are up to scratch. Amy Richardson recently posted an article in HR Daily that sets out some areas to audit and address the inadequacies before they become legal problems

1. Employment Contracts

Do you have employment contracts in place? If so, is your organisation aware of what the employment contract says?

Recently we have been seeing an increase in organisations not complying with the terms of employment contracts that don’t affect them on a daily basis. For example, many employment contracts provide that a performance review will be conducted annually. This provision is increasingly being forgotten, and failing to conduct a review annually in these circumstances, may be a breach of the employment contract by the organisation.

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Bullying in the Workplace Laws

Back in March 2013 I wrote about the Proposed Bullying in the Workplace Laws. Now that these are in place it is a good time to bring them back into topic. I have seen an increase across a couple of my clients when it has come to claims of workplace bullying. I have successfully managed to keep these complaints informal and resolved internally but the putting out of fires in this way will not work for all organisations.

 

I came across this great Video that really sets out clear as day what is Workplace Bullying – My suggestion is that everyone should watch it

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First decided case under new bullying laws …in favour of the Employer

First decided case under new bullying laws …in favour of the Employer

First decided case under new bullying laws …in favour of the Employer

 

In the first decided application under the new bullying jurisdiction, the Fair Work Commission has rejected a manager’s claim that she was bullied by two of her subordinates.

This decision was important for several reasons:

  • The FWC examined the meaning of Reasonable management action‚ π;
  • The Employers Investigation Report was considered to be a privileged document because it was prepared by a lawyer; and

Most importantly, employers need to act promptly in investigating these types of claims

 

READ More First decided case under new bullying laws6

 

Reasonable management action

Information Sourced from McKays Solicitors Pty Ltd ABN 37 150 269 506

Email Newsletter 19/05/2014

Australian HR Policies and Procedures

Haven’t got time ‚ ¨ or aren’t confident ‚ ¨ in putting
together your own employee handbook

Would you like Australian HR Policies and Procedures that clearly outline all of the boundaries, rules, expectations, rights and responsibilities for your company???

WE HAVE THE SOLUTION

But why do you need one you ask????

  • If you have an employee you instantly inherited a raft of legal obligations that you must fulfil. With most of these legal obligations if something goes wrong the first thing the courts will ask you is “what was your written policy on this issue”.
  • A well-drawn Employee Handbook can be that important record that will assist and support you, as an employer, should any legal issues or claims be brought against you.
  • A well-written handbook ensures your employees know your expectations, clearly understand the rules of conduct in your company, and are aware of the benefits to which they are entitled.
  • An employee handbook represents an important communication tool between your company and your employees
  • An employee handbook leaves nothing to chance and can be used as a tool in performance

At Fresh HR Insights we have developed a comprehensive employee handbook that cover’s the main compliance matters whilst also making it cost effective. Our handbook is ideal for business with 1 ‚ ¨ 50 employees across many different industry sectors and will set you back just $3,300*

YES that’s right – $3,300 unbelievable isn’t it?

BUT WAIT there is more……………..

In addition Fresh HR Insights offers a FREE ¬Ω day (3.5 hours) with you and your team to take every reasonable step⠹ to ensure everyone understands its contents and get the employee acknowledgement forms signed.

If you or someone you know is time poor but really needs to get their employee obligations clear

Call me today on 0452471960

Our Handbooks can either be electronic, printed or a combination of both. Printing costs are $15.50 per handbook. Handbooks are presented with a clear front cover and a black back cover and binding. *Our handbook includes up to 25 policies that are customised to suit your business whilst keeping in all the important bits. Additional policies are charged at $150

Minimum period of employment, absences and unfair dismissal

Minimum period of employment, absences and unfair dismissal

Which absences from work count (or don’t count) as service, with respect to the minimum period of employment under federal unfair dismissal laws?

There are a number of preliminary matters that must be clarified before Fair Work Australia (FWA), before an application relating to unfair dismissal can be heard. One of these matters relates to the minimum period of employment that must be served by the applicant with the employer. To access unfair dismissal laws, an employee whose employer employs 15 employees or more must have served at least six months of employment with the employer or, in the case of an employee whose employer employs fewer than 15 employees, 12 months of service with the employer. While the Fair Work Act 2009 provides a definition of service and continuous service for the purposes of the Act, which absences from work, and what types of employment, count as service with respect to the minimum period of employment, has been the subject of some conjecture, with a number of matters being determined by FWA on this issue. A case before FWA regarding an employee receiving income protection payments from their superannuation fund, reported recently by WorkplaceInfo, illustrates a circumstance that required clarification by the tribunal regarding the meaning of service in relation to the minimum period of employment.

Number of employees – In determining whether the employer employs 15 employees or more at a particular time, all employees (including casuals employed on a regular and systematic basis) employed at that time are to be counted as well as the employee(s) being dismissed, but excluding a casual employee who has not been employed on a regular and systematic basis.

Associated entities

As a jurisdictional point, an issue for FWA to determine is whether or not the employer has within its company structure any associated entities and, if it does, whether those associated entities employ any persons who should be included in determining the number of employees employed by the employer at the particular time.

FWA determined that that the question of ‚ ≤associated entities’ is contemplated by the definition of ‚ ≤control’ in the Cth Corporations Act 2001 (s50AA). Control means direction or influence over the operations of the associated entity. See: A v Condamine Catchment Natural Resource Management Corporation Ltd t/a Condamine Alliance [2010] FWA 5374.

Period of employment – The minimum period of 6 months or 12 months (as the case may be) must be completed immediately before the beginning of the corresponding day of the sixth month (or twelfth month) following the date on which the employee’s employment commenced. For example, an employee who commenced employment on 26 February and is terminated at 9 am on 25 August has not completed 6 months service and is unable to claim unfair dismissal. See: P v Manheim Fowles Pty Ltd [2010] FWA 28.

Casual employment – The Fair Work Act (s384(2)) states that a period of service as a casual employee does not count towards the employee’s period of employment unless:

  • the employment as a casual employee was on a regular and systematic basis; and
  • during the period of service as a casual employee, the employee had an expectation of continuing employment by the employer on a regular and systematic basis.

This provision also needs to be read in conjunction with the general meaning of ‚ ≤service’ and ‚ ≤continuous service’ under s22 of the Act. See: P v DJT Staff Management Services Pty Ltd t/as Daly’s Traffic [2010] FWA 2078.

Unpaid leave/unpaid authorised absence – Under the Fair Work Act, an employee’s absence on unpaid leave or unpaid authorised absence does not count as service, except in certain circumstances. However, FWA has had to determine whether certain unpaid absences from work count as service for the purpose of the minimum period of employment.

Absence on workers compensation

FWA determined that an absence on workers compensation is to be regarded as ‚ ≤paid authorised absence’ under the Fair Work Act (s22), regarding an absence which counts as service for the purpose of determining whether an employee has completed the appropriate minimum period of employment. See: WorkPac Pty Ltd v B [2012] FWAFB 3206.

Absence while receiving income protection payments

FWA determined that the period where the applicant was absent due to illness during which she was not entitled to paid leave must be regarded as a period of unpaid leave or unpaid authorised absence, even though the employee was receiving income protection insurance payments from their superannuation fund.

There was no legal obligation such as under a modern award, enterprise agreement or other employment-related legislation that required income protection insurance payments to be made to the applicant; therefore, the absence is considered unpaid leave or unpaid authorised absence. See: LM v Standard & Poor’s (Australia) Pty Ltd [2012] FWA 9634. Accident Compensation ‚ Æ Victoria

FWA determined in an unfair dismissal matter that an employee absent from work due to injuries sustained in a motor vehicle accident and receiving payments directly from the Transport Accident Commission (Vic) during this absence was deemed to have been on unpaid leave or unpaid authorised absence and, consequently, this period was not counted as service when considering the minimum period of employment. The employer in this case was not making any payments to the employee either directly or indirectly. See: W v Toni and Guy Port Melbourne Pty Ltd [2010] FWA 4540.

Unpaid pre-employment training – A person is not considered to be an employee until an offer by the employer and an acceptance of that offer by the employee has occurred. The period of employment commences when an employment contract exists between the employer and employee, not from when the person commences a pre-employment unpaid training course. For example, FWA determined that a training course advertisement that represented the guarantee of a permanent part-time position if the person successfully completed the training course and obtained a casino employee licence is not an intention that an employment arrangement was automatically created immediately those preconditions to employment were met. Rather it was a guarantee of an offer of employment, provided those preconditions were met. See: C v SkyCity Adelaide Pty Ltd [2010] FWA 9259; [2011] FWAFB 955.

Termination in lieu of notice – An employee who is terminated in lieu of notice within (say) one week of completing the relevant minimum period of employment does not qualify for unfair dismissal.

The employee must have been employed for the minimum period of employment. Provided the payment in lieu of notice is not inconsistent with the applicable industrial instrument or the National Employment Standards (NES), it cannot be deemed the employment continues beyond the time of termination specified by the employer. See: P v Manheim Fowles Pty Ltd [2010] FWA 28.

Overseas employment with same employer – FWA determined there is nothing in the Fair Work Act that would prevent time worked overseas by an employee of an Australian national system employer counting towards service for the purposes of the minimum period of employment.

An applicant who commenced employment with the employer in Pakistan and arrived in Australia on a 457 visa had a total period of employment exceeding the relevant minimum period (6 months) if their employment in Pakistan was included in the period of employment. Consequently, FWA had jurisdiction to hear the unfair dismissal application. See: A v Industries Services Training [2011] FWA 9177.

Sourced from www.workplaceinfo.com.au