Whether a new or established business, many business owners feel confused when it comes to the requirements of paying their employees. It is important to understand what is expected of you, as the employer, to ensure your employees are paid correctly. First and foremost, employees must be paid money for the work they do, not goods. They must also be paid for all the time they are at work including when in training, meetings or working a trial. There are very limited circumstances, such as student placements, where work may be unpaid.
Employing the services of a qualified and experienced bookkeeper, or a payroll officer, will help ease the stress and worry for a business owner to manage their payroll. It is not only processing the payroll itself that is required when paying employees, the process also involves issuing payslips, paying superannuation contributions plus leave accruals (if applicable).
Read below to learn more about paying your employees including:
- Where Can I Access Pay Rates for Employees?
- Should I Pay My Employees Weekly, Fortnightly or Monthly?
- Do I Have to Issue a Pay Slip Each Time an Employee is Paid?
Where Can I Access Pay Rates for Employees?
The minimum rate you must pay an employee comes from an award, enterprise agreement or other registered agreement. If no award or registered agreement applies, the national minimum wage is used.
Penalty rates and allowances may also apply when employees work extended hours or on weekends.
Depending on your entity’s structure, Fairwork or Commerce WA stipulate an employees pay rate.
The Fair Work Pay Calculator details the minimum pay rates for employees including any penalty rates and allowances that apply. It calculates base pay rates, allowances and penalty rates (including overtime).
Follow the link below to access the Fair Work Pay Calculator:
Follow the link below to access Commerce WA:
Should I Pay My Employees Weekly, Fortnightly or Monthly?
Most awards detail the frequency employees should be paid. Most employees are paid either weekly or fortnightly, but at the least must be paid monthly. Employees must pay employees for the total hours worked and aren’t allowed to make any deductions to an employee’s pay. Deductions can only be made if the employee agrees to the deduction in writing and it’s mainly for their benefit, or it’s allowed by a law or court order or it’s allowed under the award or agreement. If an employee is accidentally overpaid for a pay period, an employer can’t automatically deduct this amount from their next pay unless the employer and employee have an agreement in writing.
Do I Have to Issue a Pay Slip Each Time an Employee is Paid?
For employers, payslips are part of their reporting and recording process. For an employee, a pay slip details their pay and entitlements for a pay period. Many business’s have migrated to electronic payslips that are generally emailed to employees in a printable format however, some businesses still issue a hard copy to employees.
It is the employer’s responsibility to give each employee a pay slip within 1 working day of pay day, even if they are on leave. Employers can be fined by Fair Work for failing to include the correct information on an employee’s payslip or if they don’t issue payslips at all or within 1 working day of paying employees. It is unlawful for employers to give payslips that are purposely false or misleading.
FREED UP Accounting & Bookkeeping Solutions are a member of the Institute of Certified Bookkeepers and the Australian Bookkeepers Network and can assist with the payroll requirements for your business
Proudly servicing Perth and regional areas of Western Australia, our team at FREED UP Accounting & Bookkeeping Solutions are experts in providing cutting edge bookkeeping services, including payroll, for small business’s.
Naomi, our main principal at FREED UP Accounting & Bookkeeping Solutions, is a registered BAS Agent (#25959844) with the ATO. She is also a qualified Accountant with a Bachelor of Financial Admin (Accounting).
Call our team today on 0438 977 767.
Sources: Fair Work
Disclaimer: The information in this article is general information only