Monday 29 April - Creating Confidence In How People Are Paid

ATO updated rates and thresholds 2024-25

Superannuation rules updated in awards

Awards have been updated to reflect superannuation as an entitlement under the National Employment Standards (NES).

The Fair Work Commission (the Commission) has updated the rules about superannuation in 147 awards. The Commission is the national workplace relations tribunal.

The Commission made these updates to make sure that awards reflect the current superannuation rules. This includes the new right to superannuation contributions included in the NES, which took effect from 1 January 2024.

The Commission’s updates take effect from 9 April 2024.

While most awards were updated by the Commission, some weren’t for several reasons. For a copy of the Determinations updating the awards, visit Modern awards superannuation clauses review.

Right to superannuation in the NES

From 1 January 2024, the NES included a right to superannuation contributions. This means that most employees covered by the NES can take court action under the Fair Work Act to recover unpaid or underpaid superannuation. Learn more at Superannuation under the National Employment Standards.

Employers already have an obligation to pay superannuation contributions for eligible employees under superannuation guarantee laws.

The Australian Taxation Office (ATO) has main responsibility for ensuring compliance with employer obligations under superannuation guarantee laws.

End of Year Training

For 2024, End of Year payroll training is coming to you, wherever you are, in the form of a Virtual Classroom! Keeping up to date with payroll legislation is as important now as it always has been.

The Virtual End of Year Seminar will cover all the usual End of Year content, and?it will also address new legislation and proposed upcoming legislation that will affect payroll.

Early bird discount ends 30th April 2024.

The Virtual Classroom starts at 10:00 am AEST and will conclude at 3:00 pm AEST with scheduled breaks and Q&A.

Seminar content includes:

• EOY reporting requirements for STP
• Where to report all of your payments for STP reporting purposes
• STP Finalisation
• Amendments to STP Reporting - including key learnings for STP2 from last FY
• Key rates and threshold changes for the 2024-25 year including: ETPs - Superannuation - Payroll Tax
• Annual wage review
• Looking to the future - what's coming in 2024-25
• A year in review – changes during 2023-24 FY

The training events will also include speakers from:

Australian Taxation Office & Digital Service Providers Australia New Zealand (DSPANZ)

To book now - CLICK HERE

Cashing out of leave entitlements

An employee may request to have some or all of their leave cashed out. Before you grant this request, check that leave cash outs are actually permitted.

Annual Leave

• Annual leave can be cashed out if the employees’ industrial instrument specifically has a clause allowing it.
• Awards – cashing out of annual leave is allowable under most awards, with a maximum of 2 weeks allowed to be cashed out in any 12 month period. Check your award for further details
• Agreements (e.g. EAs or EBAs) – cashing out of annual leave is only allowable if the agreement specifically allows for it. The terms for the cash out will be as per the agreement. If the agreement does not have a cash out clause then annual leave cannot be cashed out.
• Award/Agreement free – Award and Agreement free employees can make an agreement with the employer to cash out annual leave.

For all annual leave cash outs:

• The agreement must be in writing
• The amount must be the same as it the employee was taking a period of leave
• The employee MUST have a balance of at least 4 weeks remaining after the cash out has occurred

Long Service Leave

Long Service can only be cashed out in South Australia, Tasmania and Western Australia.

In Queensland, LSL may be able to be cashed out if an Enterprise Agreement allows it, or if the employee applies to the Industrial Relations Commission for a cash out on the grounds of financial hardship. The commissioner needs to approve this prior to the cash out.

The ACT, New South Wales, Northern Territory and Victoria do not allow LSL to be cashed out.

Personal/Sick/Carers Leave

Sick leave can only be cashed out under the Timber Industry Award and the Stevedoring Industry Award. Check these awards for the terms and conditions of the cash out.

No other employee can cash out sick leave, whether covered by an Award, Agreement, or an award/ agreement free employee.

Employee Wellbeing Survey

The the Work and Wellbeing survey and help Timecloud shape a better future for workflow efficiency.

To take the survey - Click Here.

Save The Date - Australian Payroll Summit - Sydney

Date: Friday 27 September

Location: Hilton Sydney

Payroll FAQ

Question

How do I process a cash out of RDOs or Time of in lieu (TOIL)?

Answer

When cashing out RDOs and TOIL while an employee is still employed, PAYG needs to be withheld at marginal rates, using Schedule 5 – Tax Table for back payments, commissions, bonuses and similar payments.

For STP reporting purposes:

Cash out of RDO – report as a Paid Leave Type C – cash out of leave in service

Cash out of TOIL – report as Overtime Cash outs of RDOs are OTE and therefore subject to superannuation.

Cash outs of TOIL are not OTE and therefore not subject to superannuation.

2024 Australian Payroll Survey Snapshot

Australian businesses accessing external payroll support continues to trend upwards. There is still a significant reliance on internal resources or non-specialised external services for payroll functions. The choice to use a particular service likely depends on the specific needs, budget, and size of the employer, as well as the complexity of their payroll operations.

Nearly 26% of survey respondents did not have access to external payroll support services covering help-desk and training.

To access the full survey - Click Here.

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#PayrollServices #WorkforceManagement #PayrollTrends

Australian Payroll Association