Articles and insight into Superior Payroll Services

An employment contract is an agreement between an employer and employee that sets out terms and conditions of employment. An employment contract cannot provide for less than the legal minimum set out in the National Employment Standards (NES), awards, enterprise agreements or other registered agreements that may apply. A contract can be in writing or verbal (we don’t recommend verbal). It’s also important if you are a Part Time / Rostered employee to have your working days listed in the contract e.g. Mon 8hr, Tue 8hr and Fri 8hr. This will make it easier for Payroll to pay any public holidays that land on the employees scheduled working day.

Did you know STP Phase 2 completion was due on January 2022? The new reporting requirements under STP Phase 2 will need new additional configuration to support Phase 2 reporting. Most payroll software have gotten or received approval for an extension to set up the software. Therefore, they will not be breaching the law, please contact your software provider or accountant regarding this. Software will require additional information regarding: Employees. Payment items. Deductions. Salary sacrifice. Child support payments. The goals of STP phase 2 is to streamline employer interactions with multiple government agencies and improve the employee government payments.   This includes: No longer lodging electronic tax declarations. Issuing of

Any paid employee (salary and wages). Remuneration to the director of a company. Return-to-work payment. Termination payments. Unused leave paid. Paid Parental leave. Any paid employee under the Seasonal Labour Mobility Program. Non-mandatory details which can also be provided to the ATO under STP reporting include: Reportable employer superannuation contributions. Reportable fringe benefit amounts for employees. Payments made to contractors (outside the payroll).

On 1 July 2019, the Australian Tax office (ATO) requires employers to report any salaries and wages paid including PAYG withholding and superannuation information on a regular basis during the year.STP is streamline the reports as opposed to having a number of separate reporting processes. This will help you achieve efficiencies of real-time reporting and help with your compliance processes. Therefore, it is a new way for employers to report tax and super information to the ATO every time you pay your employees.The methods of reporting are:> Directly from STP-enabled payroll software, which will send a report to the ATO. Check that software provider offers STP-enabled products.> Through a third

Did you know if you’re affected by a recent event or disaster such as a bushfire, cyclone, drought, pandemic or storm and need assistance with your tax affairs, the ATO can help you? Phone them on 1800 806 218 to discuss what emergency support options are available for your individual circumstances.

Payroll tax is a tax on wages paid or payable by an employer to its employees. This occurs when the total wage bill of an employer (or group of employers) exceeds a threshold amount. The payroll tax rates and thresholds vary between states and territories, which is updated at the start of every financial year (1st July). Returns have to be lodged, payment of liability made, and an agreed frequency (monthly, quarterly, or annually) to the respective revenue office, which the wage payment is deemed liable. For more information visit www.payrolltax.gov.au

All wages and salary payments made on or after July 1st 2021 must include the 10% superannuation contribution even if the payment is for work performed prior to 1st July 2021. For example a employer pays salary and wages  two weeks in arrears and has a pay-run scheduled for July 1st, for fortnight ending June 30th, in this pay run the 10% superannuation increase commences for the hours and work performed up to June 30th. The superannuation increase is based on the payment date not when the work was performed. Employers should review their payroll payment dates to ensure the first pay-run after June 30th 2021 is configured to pay

Depending on whether your employees have an all-inclusive salary contract or not the superannuation increase of .50% may be inclusive of an employees current salary or it may be additional to their current salary. If an employee has an all-inclusive salary contract the current salary may be reduced to accommodate the increase in superannuation. However, employers are being encouraged to reconfigure salaries and wages to ensure employees can keep the base rate the same and receive the additional superannuation contribution. Employers should review their contracts and agreements before July 1st 2021 to decide which method applies. Don’t forget to inform your employees beforehand (preferably by issuing a signed written communication

The National Employment Standards (NES) are 10 minimum employment entitlements that have to be provided to all employees. The national minimum wage and the NES make up the minimum entitlements for employees in Australia. An award, employment contract, enterprise agreement or other registered agreement can’t provide for conditions that are less than the national minimum wage or the NES. They can’t exclude the NES. The 10 minimum entitlements of the NES are: • Maximum weekly hours. • Requests for flexible working arrangements. • Parental leave and related entitlements. • Annual leave •Personal/carer’s leave, compassionate leave and unpaid family and domestic violence leave. • Community service leave. • Long service leave.

Superannuation Guarantee law requires employers to pay a minimum 10% *as of July 2021* unless covered by an award or employment agreement which specifies a higher amount you must pay. You have to pay super for an employee if they: Are over 18 years old Under age 18 and work at least 30 hours per week Earn $450 or more (before tax) in a calendar month, and are employed on a full-time, part-time or casual basis (including those who are working in Australia temporarily) Eligible employees are be calculated from the day they start with your organisation. The payment must be made at least four times a year. You can