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. 

Eliminate Your Fears and Doubts about embracing Digital Innovation in HR

Eliminate Your Fears and Doubts about embracing Digital Innovation in HR

Business owners and corporate CEO’s are worried that something in digital innovations is going to change their HR model or their operations. I will say that there is a change of ethos going on in the way people think about their jobs and what their jobs mean to them.

Gone are the days of the “golden watch” or being employed from start of career to the end with one company. “The good old days” when people worked for the same company for 30 or 40 years?  Walked off the job with a fancy plaque and gold watch engraved with their name and company logo?  When family and friends would gather together to celebrate a person’s journey into their golden years? 

We will now have careers that will have multiple jobs, multiple employers and many of us will work part-time. We are building individual portfolios of work experiences. We have the rise of the Gig Economy – although there are two thoughts on the gig economy, where million self-employed Australians work on a freelance or project basis rather than in permanent jobs.

  1. the gig economy is a haven for contractors and companies because it boosts labour market flexibility.
  2. it is a form of mass exploitation of younger workers, particularly those born overseas, and a race to the bottom in wages and conditions.

The first thought is the one that most will go with – there are benefits for all and technology certainly has played its role.  Although there is an increasing ripple in the idea it is mass exploitation – think Uber, Deliveroo and other mainly food couriers.

The relationship between employees and employers is very different than ever before. There are a whole bunch of new things people are trying to do with technology. The purpose of technology today is not just to automate things; it’s to make the work experience better. So, there are some lessons to be learned by these digital innovations that we can take in our businesses. I’m going to try to give you some context of what it means to HR.

 Dealing with digital disruptive innovations

Since the beginning of the internet and the adoption of technology, productivity has not gone up significantly, and one of the reasons for that is we have not figured out how to adapt to all that technology. We don’t know what virtual reality and artificial intelligence are going to do. Our job in HR is to curate and make sense of that and use productively in a way that improves the employee experience at work.

Have you tested the on-line recruiter platforms, or the people less induction process?

The human brain can only continue to maintain relationships with about a hundred people, and so companies their business; that’s why a lot of organizations decentralize themselves into fractal Organizations. How people interact, work together, share information that’s all about culture and shared values, communication technology, and systems. The problem with us from the standpoint of HR, the way we designed our operation for the traditional organization, whether it be performance management, communication, the way learning takes place and decisions are made. You can leverage some of the techniques of taking care of your people and being a highly engaged digital organization yourself.

Do you remember the term Personnel Management? The aspect of management that is concerned with the work force and their relationship with the entity is known as Personnel Management. It’s a traditional approach where people were treated as machines and tools and the management role was transactional compared to transformational as we now have with Human Resource Management. It focused on mundane activities like employee hiring, remunerating, training and harmony where today it is treating manpower as valued assets, to be valued, used and preserved.

Value and invest in Human resource planning technologies

Now if you look at the progression of the talent market, you can see where it’s gone. Today we’re trying to measure engagement, feedback; we’re trying to do performance management, build goal management systems though ERP technologies. In the world of technology, we are now shifting our platforms away from the cloud on to mobile, so the Human Resource Planning is going to be changing with it.

There’s a whole new breed of applications out there being invented by creative people that are going to change what we can do in HR, tools for constant employee feedback, mood management tools for wellness and health, work-life management, new forms of data-driven engagement tools, tools that monitor workplace. As we aspire to build empowered highly engaged teams, coach and develop them, let them create their own goals, keep them aligned to other people and give them feedback, so a revolution of building new performance HRM is taking place.

Human resource management is not sitting around in a conference room with a whiteboard designing a process, it is studying the working the activities and workday lives of your employees, understanding what they do, and developing interactions, systems and tools in an iterative fashion to make their work better; that is the essence of HRM.

We would love to hear your thoughts on HRM and where you see if going. Perhaps a discussion on if technology is creating a verbal defecate in our workplaces – people have forgotten to talk instead emailing, texting, and messaging. Job applications are done online and if you don’t fit the tick box that’s it, all over. I am divided as to how technology will impact the future – what will happen to us as a society and what will our workforce look like.

Share your thoughts.

3 HR Trends That Will Reshape 2019

3 HR Trends That Will Reshape 2019

For small business human resources anywhere that are looking to have a merry year, it is important that you pay attention to patterns and trends. Apart from start-ups, experienced HR and ER support professionals understand that observing trends for variations and a recurring pattern is important for prediction, forecasting and ultimately getting the best out of the future to come. In a bid to keep HR relevant and ahead in the ever competitive Australia market, below are three trends we have observed as recurrent and tops our list of trends that are likely to repeat itself.

Technology: does this seem familiar? Yes, it does. There have always been big talks about how fast Artificial intelligence (AI) will reinvent the HR world. Well, Artificial Intelligence is here and both large and small businesses need to get their grip on it. Artificial Intelligence is the kind of leverage that paves way for an efficient, productive and improved workforce. AI cuts across recruiting, engaging, training, and retaining employees. Think about this, rather than spend hours sorting through job profiles, CVs, and so on, technology can help reduce the time by simply running algorithms.

A report obtained from Deloitte’s 2018 Global Human Capital Trends indicated that about 72% of organizations agree to the importance of HR and are embracing it.HR can drastically reduce the time spent on recruiting and screening of employees and simply focus the energy someplace else.  AI is a way through which HR teams and professional on the Gold Coast, and in Brisbane, and Australia as a whole can safeguard their company’s future. It is definitely worth checking out.

Workplace Trust: Results from the Government Institute of Australia indicates that Australians have lost all faith in corporate ethics. The business sector is faced with a situation where the employee confidence in HR is at an all-time low. Most times, HR teams assumes their employees trust them, where conversely, they have a negative perception and view of HR. Creating trust in the workplace is a fast-rising trend in the workplace today. HR have come to understand the need for prioritizing employee’s confidentiality, the place of sincerity and going beyond their open door policy to intentional relationship building. HR is learning not to jeopardize work confidence by not favoring one work relationship over the other. For example, they now maintain equal direct coaching for women in business and men in the business.

Perpetual learning: Companies are currently in hot pursuit of employee development and learning. As we mentioned earlier, technology is causing a rapid and continuous change to how business is conducted. To keep up, businesses need to invest heavily in transversal and job-related skills. The big problem is; we do not know to what extent the change will be. However, to be able to handle different tasks, it is important for HR to invest in employee skill learning.

It is fast dawning on HR teams and professionals that they may be doing too much for little result. Not only that, but their initiatives are also always too long to cause the needed effect. To create the needed impact, simple and seamless organization is all that is needed. But what is the real solution here.

We encourage and would love to get some feedback on your thoughts?  Please comment below

 

Build Your Dream Workplace

Women in the Workplace – How to forge your way to Success – Some things to think about for 2019

Women in the Workplace – How to forge your way to Success – Some things to think about for 2019

Men attribute their success to themselves and women attribute it to other external factors.” (Facebook COO Shery Sandberg)

There are 49.6% are female of total population and only 50% are working.  Fact is that Women’s are continuously progressing and the number of working women is increasing continuously but still there are Top 5 hardships that women’s have to face in Australian Organizations such as Work-life balance, Equal pay, Harassment, Less Career opportunities and Children and career related issues. 

It’s a Global issue, in Asia Organizations they do not  prefer female workers because they have less experience and there is the perception of a high turnover of females due to them raising their child.  Australian HRC received more than thousand complaints under Sex Discrimination Act in 2011-2012. In 2017-2018 27% of complaints received by the Human Rights were lodged under the Sex Discrimination Act. In terms of employment this was 82% in the same year.

Understanding of the Sex discrimination Act (SDA) 

The Sex Discrimination Act 1984 (Cth) makes it against the law to treat you unfairly because of your: sex; gender identity; intersex status; sexual orientation; marital or relationship status (including same-sex de facto couples); family responsibilities; because you are pregnant or might become pregnant; because you are breastfeeding.

The SDA also makes sexual harassment against the law. You can use the SDA to get fair treatment in:

  • Employment – getting a job, terms and conditions of a job, training, promotion, being dismissed.
  • Education– enrolling or studying in a course at a private or public school, college or university.
  • Accommodation– renting or buying a house or unit.
  • Getting or using services – such as banking and insurance services, services provided by government departments, transport services, professional services like those provided by lawyers, doctors or tradespeople, services provided by restaurants, shops or entertainment venues.

 

What is sex discrimination?

Sex discrimination happens when a person is treated less favorably than a person of a different sex would be treated in the same or similar circumstances. For example, it may be direct sex discrimination if male employees are paid more than employees of a different sex who are doing the same work.

Discrimination also happens when there is a rule or policy that is the same for everyone but has an unfair effect on people of a particular sex. This is called indirect discrimination. For example, it may be indirect discrimination if a policy says that managers must work full-time, as this might disadvantage women, who are more likely to need to work part-time due to responsibilities for caring for children

 These issues usually arise because of long standing norms that Males are in the workplace and the providers  and the women remain at home to bring up the family. But now Organizations have made strong policies, laws and programs to deal with such problems.

Following are the initiatives that Australian Government took to boost up women participation at workplace. I have set these out below.

  1. 18 weeks paid parental leave at minimum wage
  2. Two weeks paid leaves for Fathers 
  3. Flexible work arrangement under National employment laws
  4. Special care of employees having children of school age and employees facing family violence or providing support to a family
  5. Equal wages Order by Fair Work Australia in 2012
  6. At least 40% women must be on Australian Government boards; therefore women’s received 38.4% of Government board appointments in 2012
  7. Policies to focus on Gender diversity at workplace
  8. Strong policies to reduce sexual harassment
  9. Sex Discrimination Act 2011 to reduce sexual harassment
  10. Pregnancy Guidelines 2001 focuses on all issues and its solution regarding pregnancy

Because of above policies number of women on AXS boards has to increase from 8.3% to 15.4% within 3years. Government has made quota system to increase the Percentage of working women. Women’s are proved to be more supportive, rewarding, Compassionate, productive and influential. Link

From December 2018 Modern Awards included new ruled about request for flexible working. Before responding to a request from an eligible employee, an employer must first discuss the request with the employee to try to reach an agreement about a change to their working arrangements. Requests can only be refused on reasonable business grounds. If employers refuse a request, they need to provide the employee with a written response.

What the new arrangements require

Employers have greater consultation obligations than previously. If an employee makes a written request for flexible working arrangements, employers must:

  • Before formally responding, discuss the issue with the employee and genuinely try to agree on an arrangement that suits both of you. The discussion should cover the needs of both parties, the potential consequences for the employee if no change occurs, and any reasonable business-related issues.
  • Respond to the request in writing within 21 days.
  • If you refuse the request, the written reasons must include the “business grounds” for refusal (see further below), explain why those grounds are relevant, and any changes to working arrangements that you are able to offer.
  • If you agree to the original request, or agree on an alternative flexible work arrangement, you must formalise it in writing.

What are “reasonable business grounds”?

Reasonable business grounds” are defined in sec 65(5) and (5A) of the Fair Work Act. They include:

  • Excessive cost of new arrangements
  • Unable or impracticable to change other employees’ work arrangements to accommodate the request, or recruit new employees
  • Significant loss to efficiency or productivity
  • Significant negative impact on customer service

Note that you need to quantify any of the above reasons in your response, not merely state that they exist. The Act’s dispute resolution procedures will apply if the employee is unhappy with the way a request was handled and wants to take the matter further.

It’s not all doom and gloom for women – we have many examples of successful women’s including Shery Sandberg, Helen Gurley, Shery Sandberg, Heather Thomson, Ellen Alemany, Alexandra Lebenthal and many more. 

Still Word Economic Forum suggests that “It will take 170 years more to have men and women in equal number at workplace” according to the World economic Forum. The report says: “More than a decade of data has revealed that progress is still too slow for realizing the full potential of one half of humanity within our lifetimes.”

Although Governments and Human rights departments initiate multiple policies, laws, programs and to make sure their implementation there is another way to look at this. The Law of attraction and Self leadership theory suggests that if you want to be successful you need to think positive & make yourself confident.

“You are the creator of your own reality.” Anonymous

 “Your whole life is a manifestation of the thoughts that go on in your head.” Lisa Nichols

The Law of Attraction works like this: If you think of a thought, you will attract similar thoughts to yourself. This law requires us to understand that our thoughts work like magnets and have a certain frequency. Therefore, as you allow certain thoughts to dwell in your mind, it somehow attracts all similar events that are on the same frequency, whether they are negative or positive thoughts.

 

“What you think, you create.

What you feel, you attract.

What you imagine, you become.”

Women at Workplace should keep following points in Mind to forge their way to success

  1. Stop undervaluing yourself because to be a Women is your Positive point
  2. If you achieve a good job don’t stick, Find another good opportunity
  3. If you disagree with any point, Speak up
  4. Be strong at your arguments, your “yes” should mean “YES” and “NO” means “NO”.
  5. Negotiate about your pay before employer make final decision. A survey shows that men salaries are 7.5% higher than women’s because they negotiate
  6. Keep your eyes and ears open at workplace
  7. Participate in extracurricular activities at your workplace
  8. Don’t afraid, face and win the situation
  9. Don’t be a follower, be the Inspiration for others
  10. Be realistic, set your Goals and use Path goal strategy to achieve your Goal
  11. Be Confident, Be strong

What Does Diversity Really Mean

What diversity really means

30 July 2012

There has been a trend towards regarding diversity as diversity of thought rather than diversity of demographics, according to a presenter at a recent conference.

The paper was delivered at the 2012 Women in Management Conference conducted by Macquarie University in Sydney on 12 and 13 July 2012.

Juliet Bourke, human capital partner at Deloitte, said that ‚ ≤diversity’ means inclusion and recognising that everyone has a valid point of view that they should be allowed to contribute. The Noah’s Ark metaphor of every demographic group merely being represented at the workplace is inadequate; behaviour at the workplace must be genuinely inclusive.

Know your own stereotypes

Bourke used the metaphor of a ‚ diversity iceberg, in which certain attributes of people are clearly visible but many others ‚ such as talents, sexual orientation, carer’s responsibilities, education, values and thought processes ‚ are not obvious. Of the visible attributes, the most instantly identified one is race, followed by position in the organisation hierarchy, then gender.

Stereotyped reactions result from identification of personal attributes, leading to bias that is often unconscious. Behaviours of others also send cues that can reinforce stereotypes. A stereotype is a pattern of thinking, and can be either positive or negative. Past personal experiences also strongly influence what people think.

To encourage diversity, it is important for people to be able to identify their own stereotypes and then manage around them. Bourke described a commercially available tool, the Implicit Association Test supplied by Harvard University, US, that enables users to identify what they really think about other people.

Common types of unconscious bias

The most common unconscious behaviors that act as barriers to diversity are:

  • homophobic‚  being attracted to people similar to yourself because of a desire to connect with others, which can be awkward in situations such as recruitment interviews
  • confirmation bias ‚ looking for evidence to confirm a viewpoint you have already formed
  • attribution error ‚ categorizing of ‚ in groups and ‚ out groups

Bourke concluded by saying that diversity management requires a holistic organisation approach. People need to be able to understand their own behaviours that act as barriers (e.g. those in the list above). Above all, behaving inclusively is the goal.

Identifying the real reasons for bias

Elizabeth Raper, a barrister, emphasized the importance of digging deep to uncover the real reason for having biases and reacting in stereotyped ways. This can be difficult, and real reasons are often not discussed or even explored. Raper said that it requires thinking very critically about how decisions are made, and managing perceptions about bias. The latter will require some regular and very frank conversations.

She reflected on her courtroom experiences to add that women are often very harsh judges of other women, but are usually allowed to get away with it.

Further information For more information about this conference, visit the Macquarie University conference website.

Article obtained from Work Place Info www.workplaceInfo.com.au 02/08/2012