Businesses operating in Australia are subject to a number of requirements around record-keeping obligations. Whilst it may not seem like the most important part of running a business, it plays a significant role in employment compliance and the punishments for not being compliant can severely impact a business. Through this guide we’ll specify what details businesses must record and why it is so important for businesses to record them.
Once you’ve identified the correct base rate to pay your employees, you’ll also need to ensure that any penalty rates are applied, and relevant allowances are paid. These are often areas where businesses make mistakes that lead to them underpaying their employees, so it is crucial for businesses to understand what they need to pay their employees and when they need to pay them each rate.
The legal difference between an employee and an independent contractor has been blurred for some decades, leading to plenty of confusion and complaints from each of employers, contractors, and employees. The lack of clear guidelines has led to potential exposure for employers to litigation and prosecution.
What is the Annual Wage Review?
The Annual Wage Review is a process carried out by the Fair Work Commission in which a review is provided on the national minimum wage as well as the pay rates under modern awards. After the review is completed, adjustments are then made to reflect the findings of the Review.
One of the most common errors we’ve identified that leads to underpayments are businesses incorrectly classifying employees, whether that be choosing the wrong award, or employee classification within it. Ensuring that your employees are being paid under the correct award is the first step to being payroll compliant. Failing to be compliant at these first steps means all other payroll compliance measures in place within your business will be redundant.
Last week, the Victorian Premier Daniel Andrews, announced an Australia-wide first scheme, offering a sick pay guarantee for casual workers in Victoria. Naturally, this has sparked an abundance of questions from employers and employees alike, so the ER Strategies team has broken down the key information below.