Do you employ less than 19 employees?

STP is coming….Again

The new reporting requirement has now begun. As of 01 July 2019, businesses with 19 or less employees are required to report to the ATO each pay cycle.

In this article, we explore the important elements of the changes, with a focus on how to ensure your business can remain compliant.

What is single touch payroll?

 STP is

Coming….Again

Single touch payroll is also called real-time payroll reporting meaning every time a business pays their workers, all salary information is sent to the ATO. This includes wages, deductions and super information, eliminating the need for Pay-As-You-Go withholding activity statements throughout the year.

This real-time reporting is generally done through accounting software platforms such as MYOB, Xero or Quickbooks. In fact, this is so prevalent the ATO’s own explainer on the regime repeatedly advises businesses to talk to their third-party software providers.

Each pay run, also known as a “Pay Event”, must be reported every time you pay employees. Businesses must also notify the ATO of any changes to a previous pay run, also known as a “Update Event”.

Reporting is conducted from our Single Touch Payroll (STP) enabled payroll software. This was first introduced in July 2019 for businesses with 20 or more employees

What can’t be reported?

 Be Specific

There are some payments that can’t be reported via the STP. It includes the payments that are not paid in the payroll process. Also, if the payments were made to those that aren’t employees, you don’t have to include it in your STP.

For instance, payments that were made on investment funds or purchases that are considered taxable. For these things, businesses will still be required to provide payment summaries as well as an annual report to the Commissioner for these types of payments.

You also can’t include those that are not considered withholding payment even if it is made via the payroll software.

Why is this happenning?

Firstly, it’s a much more efficient way to run the taxation system, which means it costs taxpayers less.

It also makes black economy activity harder — at least in theory — because the ATO has a better idea of who is being paid what, and when. For businesses, STP reporting can make things easier and more efficient, particularly if the process becomes automated to a degree.

There’s no shortage of concerns about the extension of STP reporting to smaller employers. Worries range from businesses not being aware of the changes to micro-employers (four or fewer workers) not having digital payroll software or access to reliable internet (more on that below).

What is the scale of this change?

 45,000 Businesses

Currently Reporting

The ATO has said about 730,000 businesses will need to start doing STP reporting under the changes. To put that in perspective, there are about 45,000 businesses currently doing STP reporting after it became a requirement for businesses with more than 20 workers in July 2018.

About 15,000 businesses with less than 19 workers are already using STP. This means the ATO will need to increase the size of the STP regime tenfold, an undertaking described by BDO partner Brian Greenacre as a big job.

It’s the biggest compliance undertaking since the GST.

How will it work?

For businesses with digital payroll software, enabling STP reporting can be as easy as a few clicks. For those without it, the ATO has said it won’t be forcing anyone to get it, although they have strongly implied businesses should.

Businesses without digital software will need to comply with the new regime through business activity statement filings, submitted to the ATO. Compliance requirements are increasing and such a change will be a “big step” for many small businesses which don’t have digitised payroll systems.

We encourage businesses to get ahead of the curve and sign up for STP before any legislation passes.

How can HR Pay Solutions help?

HR Pay Solutions is a Licensed Payroll Provider that provides businesses with Employment life-cycle services spanning Payroll advice & outsourcing, Human Resources advice & outsourcing as well as Safety documentation all through our cloud based customised software solution.

Through our software “HRPAY”, you can report your STP directly to the ATO. Our software integrates directly into leading accounting platforms such as MYOB and Xero. Our software is also capable of other payroll and HR capabilities such as time and attendance, onboarding, tax file declarations, documentation and much more.

Set up?

Set up is easy! Simply notify the ATO and link the software with them via the Software ID or let us do it for you. Once ready, the reporting capabilities will be available for every pay run and the information will be filed directly with the ATO.

• Single Touch electronically reporting directly through to the ATO
• Report each “pay event” and provide the ATO with an “update event” for any changes made to past pay events
• Electronically upload Tax File Declaration forms
• Review and update details such as ABN, addresses, business Tax File number and more!
• Review and update employee details including date of birth tax file numbers and addresses
• You can also outsource directly with us and we will ensure your business meets its reporting requirements

Information provided in this blog is not legal advice and should not be relied upon.

When It Goes Wrong!

Workplace functions can be fun and can also cause a lot of headaches for employers

Case by the Fair Work Commission

An employee had consumed large amounts of alcohol at a work function and was involved in a number of inappropriate incidents with fellow employees and management. The Employee conducted himself in an inappropriate manner.

The Facts:

• Sexually harassed multiple employees both physically and verbally

• Bullied another employee on multiple occasions

• Swore at his manager

• Harassed an employee on multiple occasions

The Result

The employer decided to terminate this employee due to his behaviour and actions however the Fair Work Commission held that the dismissal was unfair.

There reason behind this decision was their claim that the allegations against him were never truly put to him. The Commission concluded that during the investigation, the employee was not provided with procedural fairness because he was asked general, open handed questions and therefore unable to respond appropriately. Furthermore, the Employee was not provided with a support person throughout the investigation.

Our Advice

When an investigation takes place, ensure you conduct a thorough investigation by paying attention to the entirety of the incident. There are many points to consider when conducting an investigation however as a general rule of thumb, we recommend the following:

• Gain details of the incident

• Use Witnesses

• Explain in detail, the allegations against the employee

• Advise the employee that their role may be terminated as a result of this incident

• Allow the employee a support person throughout the investigation

• Provide an opportunity and enough time to respond

• Always afford the employee investigated with procedural fairness

How can we Help

Our staff possess over 15 years experience in Human Resources and we can help your business with the “know how” on how to deal with employee issues.

Outsource your HR and Payroll to us and focus on what really matters, your business!

A Testimonial To Our Services:

Designer Transport

Designer Transport is the brain child of an experienced management and furniture transport team. With years of knowledge and engagement in the niche market of high-end furniture logistics, transport, warehousing and labour hire.

By outsourcing to HR Pay Solutions we no longer need to focus on the administration of HR and Payroll. We can place more focus on the business. This reallocation allows our business to work smarter rather than just harder”. Sarah Z, National HR and Payroll Manager

The benefits

Let us manage your

HR and Payroll

According to Sarah, one of the main benefits of outsourcing to HR Pay Solutions was the ability to save time spent on payroll and gain more efficient use of our existing management resources”

With many medium to large enterprises, it is the case of where you spend your limited resources. Often it is determined that outsourcing aspects of your business to experts, frees key staff member time to focus on managing the business.

Cost cutting and time saving

Let us manage your

HR and Payroll

“Prior to engaging HR Pay Solutions, we had three members within our HR and Payroll team. By outsourcing our payroll and gaining an efficient HR system, at a competitive price, we were able to completely reduce one headcount and reduce another headcount to part time,” says Sarah.

HR Pay Solutions provided our warehouse facilities with state-of-the-art Facial Recognition time and attendance and payroll software. They also provided our on-road employees with a Geo Location Enabled app that enables them to clock in and out on the road.”

“Further to this, I am now able to focus of what I love doing best, Human Resources and Business Strategy.”

How can we help

We are a Licensed Payroll Provider that provides businesses with Employment life-cycle services spanning Payroll advice & outsourcing, Human Resources advice & outsourcing as well as Safety documentation all through our cloud based customised software solution.

Outsource your HR and Payroll to us and focus on what really matters, your business!

Unfair Dismissal and Flexible Working Arrangements

Employer fined $20,882

Ms Khutson, a full-time employee of Pay Per Click has been with her company since November 2014 and was recently informed that her hours of work will change from 9am to 5pm with a 30-minute lunch break to 9am-5.30pm with a 60-minute lunch break.

Initially, Ms Khutson agreed to the change however she advised her employer that this will affect personal commitments on Mondays and Wednesdays thus requesting to leave at 5:15pm and shortening her lunch break by 15 minutes.

The employer refused and Ms Khutson was advised that if she did not sign her revised employment contract, her employment may be terminated. Ms Khutson refused and as a result, her employment was terminated by email.

When the Fair Work Commission (FWC) heard this case, they found that the employer was guilty of contravening the NES Standards. Specifically, by not providing Ms Khutson her right to request Flexible Working Arrangements. As a result, Ms Khutson was awarded 17 weeks of salary worth $22, 882 and the employer was fined $20, 882.

Advice for Employers

Flexible Working Arrangements

Are Part of the NES Standards

Under the Fair Work Act, Employees are entitled to request a flexible work arrangement and it is unlawful to refuse any request unless reasonable grounds have been determined.

Upon a request for a flexible working arrangement, we recommend businesses consider the following:

• Nature of the work performed by the employee
• The employee’s parental or carer responsibilities.
• The timing of the request
• How much the arrangement will cost.
• What effect the arrangement will have on other employees and your business.
• The positives and negatives to your business and the employee
• Whether other legal obligations will be breached by modifying the work arrangement, e.g. health and safety laws.

How can we Help

Our experts can provide your business with tailored advice and solutions to help your business meet their legislative requirements.

We offer Employment life-cycle services spanning Payroll advice & outsourcing, Human Resources advice & outsourcing as well as Safety documentation all through our cloud based customised software solution.

Outsource your HR and Payroll to us and focus on what really matters, your business.

A Testimonial To Our Services:

Smiles On Chapel

Save time by

Outsourcing your

HR and Payroll

“If I had to process the payroll and calculate superannuation contributions myself, it would easily take me an entire day. Why spend my valuable time when I could hand it over to payroll experts and spend 15 minutes every fortnight”. Aiman, Managing Director

Smiles on Chapel is family focused dental practice. Aiman’s vision was to create an environment in which the best possible dental care for children and adults can be offered.

The management team at Smiles on Chapel appreciate the advice and information provided by HR Pay Solutions and use it as a reference if employees have any payroll related questions. “It is so easy to make a payroll mistake and it could take me forever to resolve it. The payroll services, advice and information I receive from HR Pay Solutions sets my mind at ease

Compliance

Let us manage your

HR and Payroll

and keep your

business compliant

“Because I use HR Pay Solutions, I know all my HR and Payroll processes remain compliant,” says Aiman. “There are so many complications and changes and I don’t have time to worry about them. These are not my area of expertise and HR Pay Solutions keeps me educated and informed about these changes and lets me focus on growing my business.”

“All new employees recieve up to date employment contracts, their policies and procedures and are always paid accurately and on time. They receive their payslips every pay run and their leave is automatically tracked. I use the payroll reports provided by HR Pay Solutions to help me manage my labour better and I even use HR Pay Solutions Payroll Software to remind me of my employees’ birthdays, which promotes a positive work place.” Says Aiman. “When I need assistance, I know that help is only a phone call away.”

How can we Help

We are a Licensed Payroll Provider that provides businesses with Employment life-cycle services spanning Payroll advice & outsourcing, Human Resources advice & outsourcing as well as Safety documentation all through our cloud based customised software solution.

Outsource your HR and Payroll to us and focus on what really matters, your business!

Changes to Casuals!

Changes to the

Modern Awards

The Fair Work is releasing significant changes to Casual conversion that may lead to many businesses, including those within the Labour Hire sector, to change the way they make hiring decisions and manage their labour. Subject to the applicable legislation, casual conversion is where casual employees are the given the right after a certain period of employment, to request a change to their employment arrangement to full time or part time.

As a part of the Modern Award review in 2017, the Fair Work Commission determined that all Modern Awards should include a casual conversion term. On 09 August 2018, the Commission finalised the clauses relating to casual conversion, and as of 01 October 2018, 84 modern Awards will be changed. Modern Awards that already contain a casual conversion term will not, at this point in time, be affected by these changes.

The changes listed by the Fair Work Commission do not take effect until the start of the first full pay period on or after 01 October 2018.

A Summary

The casual employee must be employed with the employer for a period of 12 months or more and must, over the previous 12 month period, have worked regular hours of work, which could be continued as a full time or part time employee. Casual employees looking to convert must also make the a request to convert in writing upon occurrence, must be begin at the next pay cycle.

A request may be rejected provided that consultation has occurred between the employee and employer, there are reasonable grounds based on facts which are known or reasonably foreseeable, and refusal must be in writing with all reasons set out clearly. Casual employees engaged for short periods and/or work irregular shifts or hours will not meet the criteria to convert.

All disputes relating to this matter must be resolved through the dispute resolution provision of the applicable Award.

Our Advice

HR Pay Solutions
can provide your
business with advice

It is important for business to ensure compliance with the changes as recent cases have proven that non-compliance may result in major penalties. HR Pay Solutions recommends that businesses:

• Check the applicable Modern Award to determine and understand the requirements thus ensuring compliance; and

• Give all casual employees a copy of the conversion clause within the first 12 months of their initial engagement. For casual employees already employed, businesses must provide a copy of the conversion clause by 01 January 2019.

The content of this article does not constitute legal advice or guidance. Please contact HR Pay Solutions for information and advice regarding this matter or other matters relating to Payroll, Human Resources and Safety