Transitional Provisions
On 1 January 2010 some parts of the newly created Modern Awards came into effect, and on 1 July 2010 further transitional conditions from these Awards will also come in to effect.
Transitional arrangements found within Modern Awards will typically deal with:
· minimum wages
· casual or part-time loadings
· Saturday, Sunday, public holiday, evening or other penalties
· shift allowances/penalties
Recently the FWA full bench ruled to exclude hours of work and overtime from the phasing in provisions.
On the 3rd June 2010, FWA announced their 2010 wage increase decision. For Queensland businesses this wage increase used to happen annually in September. Under the new Fair Work Act, these wage increases will now occur annually in July. The decision will raise minimum rates of pay for most employees who are in receipt of minimum award wages. This decision will not necessarily impact upon those employees who are paid above the award minimum rates e.g. "market rates" (unless the market rate now falls below the new award minimums). The increase amount was $26.00 per week to base wages. This change is effective from the first full pay period on or after 1 July 2010. In normal circumstances the FWA wage increase would be applied to the existing base wage rates. However due to the Award Modernisation changes, many Modern Awards contain transitional arrangements that will phase-in new minimum wages (and other conditions) from the first full pay period on or after 1 July 2010, and phase out wages contained in existing pay scales (old awards). This will occur over a five-year period. You will need to check your Modern Award carefully to see if the phasing in will be relevant to your workplace.
Another change implemented from 1 July 2010 will be the High Income Threshold, this is the amount that will exclude a high earning employee from a Modern Award and effectively make them a "Salaried employee", it will also exclude them from being able to submit an unfair dismissal case. To make an employee exempt from a modern award you must provide them with a written guarantee of their salary, which clearly outlines their full salary package (which can include an agreed value for company supplied tools, such as laptops, mobile phones etc.). The new High Income Threshold has increased from $108,300 to $113,800.
Some allowances are also expected to increase, however a decision on these increases has not yet been finalised by the FWA.
This is a very complex and confusing time for most employers, if you feel that you need some assistance to clarify your payroll and employee requirements please feel free to contact us.
Payroll Requirements
The ever changing legislative requirements make payroll compliance a headache for payroll professionals. 1 July 2010 some superannuation contributions need to be reported on employee payment summaries. Such as, amounts that the employee has chosen to salary sacrifice into superannuation from their pay.
Payroll can be a confusing and complicated process so ensuring you have a suitable payroll system is paramount. Depending on the size and complexity of your payroll, there are three options available. First, is an in-house system, which is a off the shelf software package loaded onto a stand alone PC. Second option is to outsource the payroll function to a payroll company. Thirdly, going online, which allows real time data changes, access from anywhere for report generation and the option of providing employee portals to allow individuals to update their own details, print payslips etc.
There is no right or single solution, the level of complexity of your payroll and the knowledge or capability of your payroll administrator will determine the most appropriate solution.
Ten things to consider when choosing a payroll system:
1. Functional requirements
2. Reporting requirements
3. Technology
4. Project methodology
5. Value added services
6. Training, documentation and support
7. Quality management
8. Due diligence
9. Total cost
10. Risk assessment
People Factor Group can assist you with picking your new payroll system or to refine or assess your current package and processes.
New Workplace Relations Minister
29 June 2010
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Prime Minister Julia Gillard has announced her cabinet with Minister Simon Crean to take over the portfolios of Education, Employment and Workplace Relations and Social Inclusion. Minister Crean, the longest serving cabinet minister in the Gillard Government is said to be well placed to take over the prime minister’s previous portfolios having served more than two years in the former Keating Government as Employment, Education and Training Minister. Prime Minister Gillard said Crean was “a very safe pair of hands in portfolios that are very, very close to my heart”. Minister Crean will continue to improve employment opportunities across Australia and ensure that the rights of all working Australians are upheld, she said. |
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