October 4, 2017
If you employ staff, it’s likely you’ve heard about other employers failing Fair Work investigations and about recent changes to Award rates. What’s more is that the ATO has now introduced new changes to how you will need to be conducting your payroll, and they will be keeping closer tabs on how employers pay superannuation to employees. Make sure you’re not caught out by reading on to find out what changes will be affecting you and your business.
The ATO has made changes to how you must perform payroll
Single Touch Payroll has been passed recently into legislation. Wondering what it’s all about? Single Touch Payroll is a direct link between your payroll software and the ATO. Every single time you perform a payment for payroll such as a salary, wage, PAYG Withholding, and Superannuation payment, data is sent directly to the ATO.
From July 1 2018, Single Touch Payroll will become compulsory for employers with 20+ employees. This will be a transition year, where you will need to update your payroll solution with the necessary software to participate. If you have 19 or less employees, you’ll have to begin complying from July 1 2019.
How to get ready for Single Touch Payroll
Avoid the rush during tax-time and get ready now for Single Touch Payroll with a few simple steps:
- Enable your payroll system for Single Touch Payroll so it can send the necessary data across to the ATO. Your bookkeeper can help with this if you’re unsure how to check
- Update your payroll details
- Update your existing employee details
- Review the on-boarding process in place for new employees
- Update your super guarantee obligations as soon as possible
Unpaid Super Guarantee is catching non-compliant employees
The ATO has also advised they are upping their casework for Superannuation Guarantee by one-third. Therefore, there will be an increase in audits across the board, and penalties will increase by up to 200 percent for any employer not complying with the necessary Super Guarantee requirements.
If you don’t pay your Super Guarantee on time, you can face a penalty and the amount will no longer be eligible for a tax deduction.
Workers Comp insurance in NSW
If you’re an employer in NSW, the State Insurance Regulatory Authority (NSW Workcover) has issued a great new tool you can use to determine if your staff are deemed as workers or contractors. The purpose of this is to determine if you need to provide Workers Compensation Insurance for them or not. You can visit the website here to find out more.
Compliance with Fair Work Australia
Did you know that it’s mandatory to keep records of your employees’ hours for at least 7 years? It’s also mandatory to issue your employees with payslips within one day of pay day. In the interest of Fair Work, an App has been launched aimed at employees. This App allows employees to record their hours, and then compare these logged hours to their supplied pay slips.
Effective Services helps businesses in need of advice on payroll access their Workforce Guardian subscription. Effective Services can send queries through on your behalf and receive a response within three working days. If you could use some professional payroll advice, contact Effective Services today on 0411 218 570 on or visit the website.