While employees look forward to payday with excitement, the average employer will find it is the busiest time of the month and there’s lots to consider. Even when business is going great, employers still have to think about overtime, casual rates, holidays, allowances, and other elements of payroll.
Payroll laws in Australia are strict, and businesses need to stay compliant to avoid penalties. This can be a lot to handle for small business owners, which is why most employers outsource these responsibilities to a reputable accounting and payroll specialist.
Are you concerned about maintaining compliance as a business? Here are ten tips that every employer should know about payroll compliance. These will help you get it right at all times:
1. Take Note of Pay and Entitlement Changes during Coronavirus Pandemic
A lot has changed since COVID-19, and it will be in your best interest to learn about pay and entitlement changes now.
2. Get Familiar with the National Employment Standards
In Australia, the eleven National Employment Standards ensure fair employment arrangements for all parties. Familiarise yourself with these standards.
3. Keep Employee Wages and Entitlements in Compliance
There are critical factors that determine employee wages and entitlements. Consider these factors in your payroll management for compliance purposes.
4. Understand Tax and Superannuation for Easy Tax Compliance
Payroll and taxation go hand-in-hand, and you need to understand the two to ensure compliance. They are also related to your employee’s pay and conditions of employment. If you are looking for ways to minimise your taxes call us today. We have the solution for reducing unnecessary taxes that can save you up to 13% per annum. You can reach out to the team here.
5. Ensure Your Employees Are Getting Their Required Leave
Your employees need time to recharge their batteries, and you have to grant them their required leave. Leave is a part of payroll that has many different facets.
6. Stay On Top Of Employee Allowances, Where Necessary
Allowances must be paid where they are business-related. Again, there are different facets that relate to different business aspects. You need to pay due allowances, and they certainly affect your payroll compliance.
7. Create Employment Contracts for All Employees
Employment contracts are essential. They protect employers and employees by stating the conditions of employment clearly. They also play a critical role in payroll compliance and can be created easily from a template.
8. Squash Any Workplace Myths That Might Be Circulating
Many workplace myths can affect the attitudes of employees and employers negatively. You need to know these myths and crush them as early as possible.
9. Keep Employees Informed
Your employees have the right to understand their wages, allowances, as well as tax and superannuation obligations. Provide the right information and help them understand from day one.
10. Create a System to Manage Your Payroll
A reliable payroll management system can help you with payroll compliance. You can seek professional help to create a system that works.
Payroll compliance is essential for business success but is also a requirement for businesses in Australia. Are you compliant?
Download our e-book that expands on each of the above ten points in greater detail and ensure your business is up to scratch on payroll compliance.