First Class Accounts September 2013
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Transcript of First Class Accounts September 2013
!"# $%& 'r()*# f+r
Payroll
Tracy angwin A,#'r$-($% P$.r+-- A##+)($'(+%
A/0%&$ 2013/14 changes
Fair work Common payroll risks
Leverage payroll
W1$' )1$%/0&
1 July 2013
N+' 2,)1!
C1$%/0# (%)-,&0: Superannuation increase
Removal of upper age limit High income threshold
increase $129,300
K0. r$'0# $%& '1r0#1+-&# ETP cap increase to $180,000
Tax free redundancy component Maximum super contributions base
N$'(+%$- 2(%(2,2 w$/0 $16.37 per hour
$622.20 per week
A %0w F0&0r$-
Government
C1$%/0# (%)-,&0: Parental leave pay admin
FBT changes scrapped Timing of super reform
Fair work
W1$' (# F$(r W+r*? National body
Minimum standards Audits & inspectors
3%0 (%)r0$#0 D0)02b0r 2012 $51,000 $10,200
Per breach Fair Work $2,200 ATO per penalty
W1+ ($%& '10(r )-(0%'#) (# )+2"-($%' w('1 F$(r W+r*?
N$'(+%$- E2"-+.20%' S'$%&$r&# 1. Maximum weekly hours (38)
2. Parental leave 3. Annual leave
4. personal/carers leave 5. Community service leave
N$'(+%$- E2"-+.20%' S'$%&$r&# 6. Long service leave
7. Public holidays 8. Flexible working arrangements
9. Notice of termination and redundancy pay
N$'(+%$- E2"-+.20%' S'$%&$r&# 10. Fair work information
statement
W1$' 1$""0%# (f .+, /0' (' wr+%/?
Emps affected Details Value
5 Falsify *mesheets Meal/rest breaks
$3,852 -‐ $14,111
What happens if you get it wrong? H+'0-
Fine $55,900
What happens if you get it wrong? R0#'$,r$%'
Fine $72,000 (including $12,000 for manager)
Emps affected Details Value
1 457 visa 60-‐70 hour week Vulnerable employee
$24,217
What happens if you get it wrong? C+%'r$)'(%/ )+2"$%.
Fine $178,750
Emps affected Detail Value
116 Incorrect pay Sham contrac*ng Failing to keep proper record
$45,997
What happens if you get it wrong? R0'$(-
Fine $206,000
Emps affected Detail Value
Single complaint 260 employees
Single complaint Employer co-‐opera*ve with FWA
$182,000 wages $24,000 super
contractors vs employees
C+%'r$)'+r# Paid for results
Uses own equipment
Free to delegate
Freedom in way work is done
Provides services to others
Free to accept or refuse work
Responsible for financial risk
E2"-+.00# Paid for time worked
Do not provide equipment
Not free to delegate
Cannot choose way work is done
Recognised as part of business
Must perform their duties
Take no commercial risk
Sham contracting • Intentional claim that an employee is a
contractor • Don’t be careless! • Recent $166,000 fine • Illegal to dismiss an employee if they don’t agree
to be a contractor • Liability remains with the employer
Super on ordinary time earnings
Accessorial liability
W1$' (# A))0##+r($- L($b(-('.? Relatively unknown provision Fine up to $10,200 per breach
Recent prosecution
Record keeping requirements
W1$' r0)+r&# &+ .+, %00& '+ *00"?
Time keeping records Payslips
Leave records
W1$' %00&# '+ b0 +% $ "$.#-("? Gross and net amounts
Payments and deductions Pay period plus date of pay
ABN Superannuation details Pay rate + hours worked
PLUS! Delivered within one day of pay
Even if employee is on leave In secure format
Opportunity to leverage payroll
F+r SME# Payroll is no longer simple
software is efficient and cheap Value of payroll is higher
Not linked to hours
Where to from here?
W10r0 '+ 4%& -0v0r$/0 You have information that
solves problems Internal value
Fr00 w00*-. %0w#-0''0r www.austpayroll.com.au/
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