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February - March 2015
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AN N
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Journal 147
Cover shot: The Twelve Apostles, Great Ocean Road, VIC
Digital Journal
The Journal is now interactive. If you see a link, you can click
on it and it will open up your web browser. This also applies to
all advertisments where you can click on the ad to visit their
website.
On this Index page you can click an article title to go directly to
that page. At the bottom of every page, you will see the Index
icon. Click on it to return here at any time.
04 Payslips
30 Industry News
06 Employment Law Update
32 Next generation of HR Outsourcing
14 Would your business survive a payroll audit?
36 Termination and RDOs
18 How complex is it to run payroll across the globe?
40 Workers’ Compensation & Weekly payments
23 What is stand down and what are the rules?
43 Superannuation on payslips
27 Creating an employer of choice benefit program
55 New Zealand Payroll News
DISCLAIMER: The Association for Payroll Specialists Pty Limited acts in a non-representational capacity for users of its services and attempts to provide operational solutions to payroll problems as they arise. All tax and financial solutions offered are of an operational nature and
are not provided to satisfy any statutory obligations nor is any solution provided as conclusive financial or tax advice. For example, you should consult a registered tax agent in preparing your tax return, as responsibility for your tax return, including its preparation, rests with you.
Executive Editor
Jason Low C.P.S.
[email protected]
3
Managing Editor
Maureen Martin C.P.S.
[email protected]
Artwork/Layout
Damon Low
[email protected]
Advertising
Christine Chadwick
[email protected]
The Journal 147 | February-March 2015
Sydney
4/50 Carrington Street
Sydney, 2000
Melbourne
2/100 Dorcas Street,
South Melbourne, 3205
Ph: 1300 711 240
Web: www.payroll.com.au
eMail: [email protected]
Index
Payslips
Payslips
Example text
anuary 2015
December-J
#147
Written by Jason Low C.P.S.
Senior Payroll SME, TAPS
[email protected]
au.linkedin.com/in/jasonpayroll
@tapspayroll
In a recent training course we were talking about the importance
of paying people accurately and on time when one of the students
shared a shocking story.
They were working in the pay office of an import/export body
paying the employees. Apparently the employees used to get very
upset if their pay was not 100% accurate. It was not uncommon
for the pay office to receive aggressive calls with lots of yelling and
threats. It was such a serious problem that the pay office staff had
to remain anonymous.
One day the pay office got a call from a very friendly employee
who had been underpaid. The pay office quickly fixed the problem
and the employee was very thankful. He was so thankful that he
even sent flowers.
That night as the lady from the pay office walked to her car with
her lovely flowers, the employee was waiting outside looking
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The Journal 147 | February-March 2015
for the person with flowers and then physically attacked her for
getting his pay wrong.
I was so shocked to hear this story… it had to be an urban myth. I
re-told the story the next day at a TAPS breakfast meeting. To my
amazement people had similar stories, not only about the import/
export industry, but also other industries... many members told
me that the story was probably true.
Who knew payroll was such a dangerous occupation? I hope those
days are a long way behind us.
This is the exact reason we run National Payroll week to raise the
profile of payroll professionals around Australia.
TAPS is proud to celebrate this week with all of you. Great job
everyone !!
Index
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Employment Law Update
Written by Brian Williamson
Managing Director, WilliamsonLegal
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The Journal 147 | February-March 2015
Index
williamsonlegal
THE LAWYERS EMPLOYERS TRUST
WHEN IS A CASUAL NOT A CASUAL?
As part of its four year review of awards, the Fair Work
Commission has identified a number of “common issues” across
the modern awards which it will address through submissions to
separate full benches. The common issues thus far identified are:
annual leave, apprentice conditions, award flexibility, part-time
employment, public holidays, transitional provisions and casual
employment.
The question of casual employment has been a vexed one
for some time. Many modern awards do not define casual
employment beyond stating that a casual employee is “an
employee engaged as such and, in some workplaces, the
differences between a casual and a permanent employee is hard
to distinguish.
Employers need to consider whether the “casual employee,”
despite a written contract stating their status, is in fact a
casual. This is especially true when working out an employee’s
entitlements on termination or redundancy. A “casual employee”
who has been working in a regular and systematic fashion for a
long time may be “deemed” to be a permanent employee. The
Fair Work Ombudsman may well decide a “casual employee” is
a full time or part-time employee and require the employer to
make payments to the employee for unpaid entitlements such as
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The Journal 147 | February-March 2015
annual leave.
The Australian Council of Trade Unions has proposed a number of
model clauses for modern awards including:
• A mandatory casual conversion clause whereby a casual
employee who has worked in a regular and systematic way
during a qualifying period (six or twelve months) would have the
right to elect to be either part-time or full time and an employer
would be obliged to inform the employee of their right to do so;
A mandatory casual conversion clause where an employee who
has worked in a regular and systematic way during a qualifying
period (a suggested six months) would automatically become
permanent after the qualifying period unless the employee
notified the employer that they did not wish to convert to
permanent status.
The ACTU are also seeking
• a minimum four hour engagement or payment for casual
employees,
• that employers be obligated to ask existing staff if they would
like to increase their hours before engaging the number of casual
or part time employees; and
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williamsonlegal
THE LAWYERS EMPLOYERS TRUST
• that employers must inform a casual employee on engagement
of the likely number of hours they will be required.
The Fair Work Commission are currently seeking submissions.
Any decision may vary across awards on the basis of the industry
needs.
Employer planning and action:
Employers should review their current workforce and whether
there are “casual employees” who have been working regular
and systematic hours for more than 12 months. If so, employers
should consider updating the employment contracts for those
employees.
DEALING WITH CULTURALLY
DIVERSE CLIENTS (Part 2)
In a previous update, we discussed recognising the business and
operational need to manage cultural diversity following Brian’s
presentation at a national conference in which he presented a
paper dealing with managing cultural diversity in clients and
customers. It soon became apparent to him that many employers
have never turned their minds to this issue, but that there are
great business reasons as to why they should do so.
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The Journal 147 | February-March 2015
The business need flows from having a culturally diverse
population and the opportunities for growth that flow from
managing those needs. The operation need flows from
having policies, procedures and systems in place to deal with
multicultural issues.
In this issue, we discuss:
• Developing a broader knowledge base;
• Strengthening communication skills; and
• Dealing with culturally based issues.
Developing a broader knowledge base
“Managing Cultural Diversity” [1] sets out the requirements to
achieve cultural competence. There requirements are cumulative:
1) Systemic cultural competence
This requires effective policies and procedures, monitoring
mechanisms and sufficient resources to foster culturally
competent behaviour and practice at all levels.
Index
2) Organisational cultural competence
This requires skills and resources to meet client diversity and
an organisational culture which values, supports and evaluates
cultural competency as integral to core business.
3) Professional cultural competence
This depends on education and professional development and
requires cultural competence standards to guide the working lives
of individuals.
4) Individual cultural competence
This requires the maximisation of knowledge, attitudes and
behaviours within an organisation that supports individuals to
work with diverse colleagues and customers.
At the individual and team level, achieving cultural competence is
an ongoing process of learning about cultures, cultural adaptation
and cross-cultural communication. To ensure that we are
‘culturally competent’ we need to:
“
williamsonlegal
THE LAWYERS EMPLOYERS TRUST
Many smaller franchise
operations or groups of
employers who operate similar
businesses, find it very difficult
to manage industrial relations
across the group. Individual
Enterprise Agreements are
expensive to negotiate and
franchisees are often intimidated
by having to deal with a Union
that has more industrial relations
resources than they do
• Be prepared. Learn about cross-cultural communication and
other cultures.
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The Journal 147 | February-March 2015
Index
williamsonlegal
THE LAWYERS EMPLOYERS TRUST
• Be aware of your own cultural values, assumptions and
expectations.
• Explain key differences when necessary. The most important
ones are often invisible.
• Help newcomers.
3. Communication style: How we prefer to express ourselves.
This includes ways of getting our point across, assumptions about
ways of speaking and interacting with each other.
4. Values, attitudes and prejudices: What we believe is right.
Cross cultural communication
This element is the most complex and includes our deep beliefs
and feelings about our own identity, about the world and how we
judge other people.
“Managing Cultural Diversity” [2] sets out four basic elements of
cross-cultural communication:
Highlight these key words.
1. Verbal behaviour: What we say and how we say it.
• Verbal
This includes accents, tone of voice, volume, rate of speech and
use of slang, idioms, proverbs.
• Non-Verbal
• Style
2. Non-verbal behaviour: What we say when we’re not talking.
• Values
This includes ‘body language’ such as eye contact and ways
of showing respect, ‘object language’ such as dress codes and
ornaments and ‘environmental language’ such as house and
office design.
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The Journal 147 | February-March 2015
Using these terms as a sort of short-hand memory device can help
you to remember what you have learned about each element to
help you to analyse and understand any cross-cultural encounter.
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williamsonlegal
THE LAWYERS EMPLOYERS TRUST
Dealing with culturally based
issues
Within employment, it is important to have set
the expectations with employees at induction
and to have clear Anti-Discrimination and
Anti-Sexual Harassment Policies.
Wise employers will also have an Anti-Bullying
and Anti Workplace Harassment Policy.
A formal Grievance Procedure should also
support these Policies.
In terms of client management, it is important
to discuss with the client any key cultural
issues and how to manage any issues that
arise.
For example, at the first meeting it may be
prudent to consider and then discuss some
or all of the following and not just make
assumptions. They are taken from The Silent
Language [3]:
11
HIGH CONTEXT CULTURES
LOW CONTEXT CULTURES
Collectivist
The group comes first. Strong ties and expectation of
unquestioning group loyalty in return for support and
protection
Individualist
The individual comes first. Loose ties and expectation
of looking after oneself and immediate family
Being/Inner Direction
Who you are. People influence by external forces or
destiny
Doing/Outer Direction
What you do. People believe they are masters of/
responsible for own destiny
Particularist
Decisions depend on the particular situation
Universalist
Decisions based on established rules of law
Hierachy/High Power Distance
Respect power holders. Accept and defer to status
differences based on power
Equality/Low Power Distance
Everyone is, or should be, equal. Reject status
differences based on power
Long Term Orientation
Time is circular or eternal. Tradition respected. Long
planning cycles
Short Term Orientation
Time is linear or limited. Modernity valued. Short
planning cycles
Ascribed Status
Judged on connections or who you know. Family, class,
age, school or company
Achieved Status
Judged on merits or what you know. Personal
achievements or credibility
Oral Agreements
Trust-based relationships basis of transactions.
Handshake
Written Agreements
Trust assured through formal instruments of
agreement. Contract
Formality
Protocol and clear distinctions according to status.
Formal titles
Informality
Manners important but relaxed about status
distinctions. First names
Higher Avoidance of Uncertainty
Uncomfortable with ambiguity. Tighter structures, rules
or fewer risks
Lower Avoidance of Uncertainty
More comfortable with ambiguity. Willing to take risks,
change rules and structures
Masculinity
Rate achievement and success more highly than caring
for others
Femininity
Rate caring for others and quality of life more highly
than achievement
The Journal 147 | February-March 2015
Index
Suite 2, Level 10 AWA Building,
47 York Street,
Sydney NSW 2000
Similarly, any dispute management systems will need to be
cognisant of the above. Training will be critical. Any dispute
management system will only work if the manager of the dispute
is trained in dispute management and recognition of cultural and
related issues.
Contact us:
Ph: (02) 9251 4900
Fx: (02) 9251 4899
www.williamsonlegal.com.au
[1] 2010 Australian Multicultural Foundation & Robert Bean Consulting, page
52.
[2] 2010 Australian Multicultural Foundation & Robert Bean Consulting, page
40-49.
[3] The Silent Language: Edward Hall, 1959, Cultures & Organisations: Geert
Hofstede and Principles of Intercultural Communication: Porter and
Samovar, as reproduced in “Managing Cultural Diversity”
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The Journal 147 | February-March 2015
Index
Training in just 60 minutes and
from anywhere in the world.
TAPS Webinars provide essential
payroll training without leaving
your office.
Fuel your daily tasks with quick blasts of crucial payroll knowledge.
If you are missing a certain component that could make your
work easier, TAPS Webinars are the solution.
In just 60 minutes and from anywhere in the world you
will get the tools, tips and tricks that you need to quickly
maximise your productivity.
1300 723 159
13
payroll.com.au
Membership | Recruitment | Training | PayAssist Helpline
The Journal 147 | February-March 2015
Index
Example text
Would your business survive
a payroll audit?
Three factors to consider
Written by Talent2
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The Journal 147 | February-March 2015
Index
Payroll Audit
How confident are you that you’re keeping adequate
payroll records to pass an audit? Every business is a
potential audit target, so you don’t have the luxury of
thinking it won’t happen to you. Here are three things
you need to consider carefully:
1. How reliable is your internal payroll management
function?
You may have faith in your employees, but there’s no doubt
getting payroll right is a complex job, which may make it difficult
to apply best practice policies. It also makes it harder to fill the
skills gap if those staff resign or take holidays.
Let’s reflect on the role of the payroll manager. They collect
and interpret large amounts of data, maintain extremely varied
personal and financial records, manage discrepancies, and create
and update policies – all the while making sure you comply with
state, federal or international legal requirements by studying
existing and new legislation, and keeping their skills up-to-date
through regular training.
We rely on payroll teams to get the finer details of tax, super
and compensation payments correct, but also take a big picture
view to help us understand and manage our workforce from
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The Journal 147 | February-March 2015
a managerial and HR perspective. And in small to medium
enterprises, staff might manage payroll among a raft of other
administrative or financial tasks.
2. How will growth or change affect your payroll system?
Effective payroll systems and procedures ensure problems are
more easily rectified and compliance is managed, regardless
of the number of employees you have or where you operate.
Because who knows when your business may need to expand?
Think about the infrastructure you have in place to manage record
keeping. Is your technology out-of-date? Do your systems easily
deliver the information you need to pass an audit?
The need for secure, scalable and specialist payroll solutions has
resulted in a trend of businesses adopting outsourced web-based
systems. The move to cloud-based business process management
systems is mainstream and growing according to research firm
Gartner. Gartner Vice President Janelle Hill attributes its growth
in part to business leaders “being asked to make faster and better
decisions in an ever-changing business context.”
Payroll management systems built on cutting-edge technology
make record keeping for compliance easier, help you analyse
payroll information to inform your strategic and operational
planning, and give you access to a broader base of expertise in
Index
Payroll Audit
payroll via a widely accessible platform.
3. What could you lose if you’re non-compliant?
The act of being audited poses a financial burden on your
business as it takes your staff away from day-to-day duties.
But the implications of not passing the audit are much more
significant. Non-compliance may result in fines, breaches,
unhappy and unproductive employees, damage to reputation and
loss of business.
If you make serious mistakes in regard to employee entitlements,
tax or compensation payments, the ramifications in the public
sphere could be catastrophic. With the prevalence of social media
and the power of word of mouth, you don’t need to be a large
organisation for negative press to spread and affect your revenue,
your industry standing or your ability to attract new employees.
Outsourcing payroll reduces risk
The complexity and importance of this facet of business operation
leads many to investigate outsourcing their payroll. You can put
your fears to bed by working with a managed payroll provider
to audit and assess your record-keeping before the tax office
comes calling. Because the first step in becoming audit-ready is
understanding your current level of compliance.
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The Journal 147 | February-March 2015
Payroll solutions providers can help you implement more robust
payroll processes, and they stay abreast of changing legal
and audit requirements, reducing the risk to your business.
Outsourcing payroll services also offers greater continuity. For
example, event management company Arinex overcame the issue
of isolated payroll knowledge within the organisation by adopting
a managed payroll service and web-based system to automate
and streamline their processes.
So don’t let the idea of a payroll audit keep you awake at night.
Download our free eBook called HR and Payroll Statutory
Complexity Across Asia Pacific to learn more about the cost of
non-compliance and how you can mitigate risks by outsourcing
HR and payroll services via the following URL: CLICK HERE
First published on http://talent2.hs-sites.com/blog 15/01/2015.
Used with permission by Talent2.
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Example text
How Complex Is It to Run
Payroll across the Globe?
Payroll Complexity Index
Written by NGA Human Resources
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The Journal 147 | February-March 2015
Index
Payroll Complexity Index
Managing and rewarding employees across the globe can be costly and full of legal, cultural,
compliance and data quality challenges. As a market leader in HR & payroll services,
NGA initiated a Global Payroll Complexity Survey to provide an objective overview of the
complexity of managing the payroll process in 35 countries across the globe.
NGA’s Global Payroll
Complexity Index 2014
Ranking by Country /
Compound Complexity Index (/10)
NGA’s Global Payroll Complexity Index has been defined
based on 5 key categories impacting payroll complexity
Western European countries appear to have a more complex payroll process
as compared to the rest of the world. At the other end of the spectrum, we
see that Asian payrolls are much easier to manage than elsewhere.
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The Journal 147 | February-March 2015
Index
Payroll Complexity Index
Managing Payroll Data: Key Influencers
The Gross-to-Net Calculation Process
Across the globe, an average amount of 15 different
parameters influence the complexity of managing
payroll. But some parameters have a bigger impact
on payroll complexity than others:
The complexity of the gross-to-net
calculation process is influenced by a wide
range of changes, decisions and processes.
Multiple payroll runs, retro-calculations,
regulatory changes and HR modifications are
just some of the components that impact the
gross-to-net calculation process.
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The Journal 147 | February-March 2015
Index
Payroll Complexity Index
Conclusion
NGA HR’s Payroll Complexity Index 2014 is based on an analysis of the
local payroll situation in the countries where we operate. By sharing a
questionnaire with all of our payroll experts globally and by conducting
online interviews among a sample of local HR experts with deep payroll
expertise, we have compiled a representative overview of the payroll
complexity in each individual country.
This research highlights the key elements that influence payroll
complexity, and provides greater insight into global payroll practices and
requirements.
Looking for more detailed information about this survey?
Download the full Global Payroll Complexity Index 2014 reports on
http://resources.ngahr.com/payroll-complexity-index-2014-full-report
http://resources.ngahr.com/payroll-complexity-index-2014-country-overview
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The Journal 147 | February-March 2015
Index
We process your payroll
so you can focus on…
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• Full or part managed payroll outsourcing service
• Successful HR and Payroll implementations
since 1983
• Australia processing centres
• Integrated Time & Attendance as an option
• Human Capital Management as an option
Human Capital Management
& Payroll Software/Services
1300 376 684
[email protected]
www.frontiersoftware.com
Offices: Melbourne, Sydney, Perth, Brisbane, Adelaide and Canberra
Other offices: India, Malaysia, New Zealand, Philippines, Singapore and UK
What is Stand Down and
What are the rules?
23
The Journal 147 | February-March 2015
Index
“
Stand Down and the rules
What is a Stand Down and what are the rules?
The FW Act includes stand down provisions which allow
employers to stand down employees, without pay, where they
cannot usefully be employed during a period because of any
stoppage of work for which the employer cannot reasonably be
held responsible, such as a natural disaster.
These provisions only operate where an enterprise agreement
or the employee’s contract of employment don’t contain a stand
down provision that deals with the same circumstances.
What happens to an employee’s pay during a period of
stand down?
During a period of stand down the employer is not required
to make payments to an employee but is not prevented from
electing to do so.
Although there are no prescribed employee notification
requirements in the FW Act, it is good practice for the employer to
inform employees whether or not payments will be made during
a period of stand down. This information will assist employees
to know their entitlements and avoid confusion which may be
caused by an unexplained change to their take home pay.
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The Journal 147 | February-March 2015
The FW Act includes stand
down provisions which allow
employers to stand down
employees, without pay,
where they cannot usefully
be employed during a period
because of any stoppage of
work for which the employer
cannot reasonably be held
responsible, such as a
natural disaster.
Index
Stand Down and the rules
Employees who have been stood down without pay can also
contact Centrelink on 13 28 50 to discuss the options available
based on the employee’s individual circumstances, including
income support payment options and other assistance.
If an employer has stood down an employee, is the
employee entitled to accrue leave during a period of
stand down?
Under the FW Act, an employee will continue to accrue annual
leave and personal leave during a period of stand down.
If an employer terminates an employee during a stand
down period, can the stand down period be used as part
of the notice period?
No. A period of stand down cannot be used as part of an
employee’s notice period under the NES (i.e. the stand down
period and the notice period cannot operate concurrently).
The employer may provide the opportunity to the employee to
work out the notice period after the conclusion of the stand down
period (e.g. when the business / work site re-opens).
If an employee is prevented from having the opportunity to work
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The Journal 147 | February-March 2015
out the notice period (e.g. the business or work site will not be
re-opening) then the employer is required to provide payment in
lieu of notice.
In situations where a business or work site will not be re-opening
the employer may also need to consider redundancy pay
entitlements.
If an employee resigns during a stand down period, can
the stand down period be used as part of the employees
notice period?
Yes. A period of stand down can be used as part of the notice
required to be given by an employee to an employer (i.e. the
stand down period and the employee notice period can operate
concurrently).
Can an employee access the inclement weather
entitlements under certain modern awards where an
employee has been stood down due to flooding or other
natural disasters?
If an employer stands down an employee, the employer is
not required to make payments (including inclement weather
payments) to the employee for that period.
Index
our clients throughout Australia since 1997.
Creating an employer of
choice benefit program
www.summitfleet.com.au
Creating an employer of choice
As you strive to maintain your organisation’s status
as an employer of choice, ensuring you have a
robust and nimble employee benefits program
is essential. A motor vehicle is one of the most
popular salary packaged items in the current
working culture.
With a Novated Lease the principal objective is
to help the employee salary sacrifice any leasing
and running costs into one set monthly payment
for an agreed term. With the right leasing supplier
you can even protect against risk on vehicle
maintenance and resale depending on the
products used, while managing and reporting on
budgeted costs, such as fuel and insurance.
Employees benefit from a number of concessions
on these types of transactions that directly
translate to cost savings. It becomes a tax-effective
way to finance a vehicle and reduce taxable
income. The vehicle may be used for private use
while also accessing fuel, maintenance and fleet
27
The Journal 147 | February-March 2015
Index
dedicated and strategic partners?
At Summit Fleet, we do!
Creating an employer of choice
discounting. There is greater flexibility with vehicle choice, while
payments are fixed for an agreed term, giving surety and cash flow
ease, payroll deductions are therefore consistent.
Employers gain appreciation and engagement from staff who
enjoy personal benefits, meaning staff recruitment and retention
is enhanced. The good news is that savings and advantages from
these products and services are not just limited to the employees.
When an employee takes advantage of a packaged program, there
your
staff,level
helping
is noPackaged
direct cost toprograms
the employer.for
More
employer
savingsyou
and
and from
employer
of choice and
enabling
valuebecome
can be derived
reduced organisational
FBT liability,
as well
as no vehicle
ownership
and responsibility.
then
greater
cash flow
ease,risk
all whilst
potentially This
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correlates
to
reduced
balance
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exposure
and
there
is
also
the
organisational FBT and Payroll Tax. Experience the
potential for payroll and work cover concessions in some states.
Value, Service and Strength we have provided to
our clients throughout Australia since 1997.
The following scenario shows the benefits of packaging a $30,000
car and its running costs over three years for a driver who covers
15,000 kilometres every 12 months.
Estimated Salary
Comparison
Employee
Contribution
Method (ECM)
Packaged
Unpackaged
Gross Salary
$65,000
$65,000
Annual Vehicle
Costs
$8,271
$0
New Gross Salary
$56,729
$65,000
PAYG Tax
$10,736
$13,507
Contact Summit Fleet Leasing
New Annual Nettoday.
$39,813
and Management
Salary
CallAdvantage
toll free
Per
Annum
1800 259 259
$36,363
$3,598
www.summitfleet.com.au
Contact us now to find out more on 02 9638 7833 or visit
summitlease.com.au
Robbie Fidler
National, Corporate Business Development Manager
Summit Fleet Leasing and Management
Sumitomo Mitsui Auto Service Group Company
*Disclaimer: Summit Auto Lease Pty Ltd accepts no liability for the reliance on the results
provided in this calculation. Visit www.summitfleet.com.au for more information.
28
The Journal 147 | February-March 2015
Phone +61 2 9638 7833 | Mobile 0418 963 169
[email protected] | www.summitlease.com.au
Index
Do you like to do business with
dedicated and strategic partners?
At Summit Fleet, we do!
Summit Means
29
Packaged programs for your staff, helping you
become and employer of choice and enabling
greater cash flow ease, all whilst potentially reducing
organisational FBT and Payroll Tax. Experience the
Value, Service and Strength we have provided to
our clients throughout Australia since 1997.
The Journal 147 | February-March 2015
Contact Summit Fleet Leasing
and Management today.
Call toll free
1800 259 259
www.summitfleet.com.au
Index
Industry News
Business case for safe, healthy and
productive work recently released
Revised Guide to securing
personal information
The OAIC has released revised guidance to assist
organisations to meet their obligations under the
Australian Privacy Principles to take reasonable
steps to protect personal information. The Guide
to securing personal information emphasises
the five steps that are necessary for agencies and
organisations to take in assessing whether to collect
personal information, how to protect it, and what
to do with it once it is no longer needed. For the first
time, it includes steps and strategies to minimise
the risk of a ‘trusted insider’ breach and includes a
section on using cloud storage solutions.
Read the Guide to securing personal information
http://www.oaic.gov.au/privacy/privacy-resources/
privacy-guides/guide-to-securing-personalinformation
30
Safe Work Australia has released the third paper in the series on the Role
of
Accounting in Work Health and Safety Governance – The business case
for safe,
healthy and productive work. The business case for work health and safety
is
generally misunderstood and poorly analysed. In summary:
1. The legal requirements for work health and safety provide a clear busines
s case
for investment.
2. The limitations of financial cost-benefit analysis make it inappropriate
for
informing decisions as to whether or not to invest in controlling risks
to the
health and safety of workers, however
3. Financial (cost) analyses are likely to be useful for highlighting the most
obvious
and measurable work health and safety cost implications of operational
and
financing decisions – although to avoid misinterpretation must be accomp
anied
by a caveat that recognises the incompleteness of estimated financia
l benefits.
To this end, detailed research that can provide industry with guides to
ratios of
visible to hidden costs for various injury and illness outcomes are likely
to be
useful); and
4. Intervention cost analyses (as opposed to cost-benefit analyses) remain
important for informing choices between equally effective risk controls
.
For more information or to download the paper visit the Safe Work Australia
website.
The Journal 147 | February-March 2015
Index
Industry News
New report on Australians’ attitudes to risk
taking and rule breaking
Workers are more likely to accept risk taking at work than their bosses,
and labourers are generally more accepting of
risk taking and rule breaking in comparison with workers in other occupat
ions.
These are the findings of a new Safe Work Australia report which highligh
ts the attitudes of Australian workers towards
acceptance of risk taking and rule breaking in the workplace as measure
d by the Perceptions of Work Health and Safety
Survey 2012-13.
The report also found that compared with other priority industries, transpo
rt, postal and warehousing industry
employers were much more likely to agree that they break safety rules
in order to complete work on time and were
more accepting of risk taking at work.
The survey provided a baseline measure of work health and safety attitude
s, beliefs and actions shortly after the
model work health and safety laws were introduced in 2012. It targeted
employers, sole traders, health and safety
representatives and workers.
Safe Work Australia believes the findings may help explain the high rates
of injury and fatality amongst labourers
and within the transport, postal and warehousing industry. They suggest
that aspects of the economic and social
environment, as well as workplace culture, are likely to play a role in the
acceptance of risk taking and rule breaking.
Read the report at safeworkaustralia.gov.au
31
The Journal 147 | February-March 2015
Index
HR Outsourcing
Demand for the next generation in global HR Outsourcing is
set to grow significantly given the reality of the ever increasing
complexity created by the hybrid HR technology landscape most
operate; which in turn is driven by the rapid adoption of Cloud
HR, the challenge of integration to the retained OnPremise HCM
platforms and the skyrocketing growth for analytics.
What Will the Next
Generation of HR
Outsourcing Look Like?
Rob Hill, VP Sales UK, Enterprise,
NGA Human Resources
The reality is that business today demands the intuitive Cloud
HR solutions to actually (and finally) ensure your employees
will use the applications, they want analytical data delivered
instantaneously on their mobile device to drive effective decision
making and they want to be able to sign-off on the transactional
people management tasks without effort. All of this must be done
while reducing expenditure
So what are the specific challenges?
• Managing Cloud HR platforms – The change in rhythm from
annual maintenance releases and major upgrades every 5-10
years for On Premise HCM to the more fluid 2 – 4 releases per
year for Cloud HR creates a significant challenge for the internal
HR IT Project team, made even more complex and expensive
when you have multiple Cloud HR applications to manage.
• On Premise HCM – Many organizations remain committed to
their core HCM platform to run in a hybrid HR IT landscape
alongside the Cloud HR applications, resulting in the HR IT
32
The Journal 147 | February-March 2015
Index
HR Outsourcing
Project team needing to maintain existing skills associated with
annual maintenance releases, major upgrades, integration and
hosting challenges.
• Global Payroll – All HR applications including the cool Cloud HR
and analytics tools require accurate and perfectly integrated
payroll data to ensure they actually deliver what was promised
in the sales demo; therefore demanding that the global payroll
problem is finally addressed and fixed.
• Transactional HR Business Process – It is not cost effective,
efficient or a good use of limited HR resources to manage the
transactional HR business processes when they should be
focused on where HR can deliver real business value. Value
comes from the Centre’s of Excellence, the HR Business Partner
team, a focus on analytics and business strategy – not answering
employee telephone calls, responding to emails or completing
data entry.
HCM, PeopleSoft, SuccessFactors, Workday, Taleo, Sumtotal,
etc.
3. Provide Application Management services across both
traditional On Premise and Cloud HR platforms
By partnering with one organisation who can deliver the complete
Next Generation HR Outsourcing service it becomes possible to
deliver a better service to employees, remain legally compliant,
focus on the execution of HR strategy, supporting business
decision making with reporting and analytics; all while delivering
significant cost savings.
Rob Hill, VP Sales UK, Enterprise, NGA Human Resources
The sensible option is to consider Next Generation HR
Outsourcing
A senior, consultative business development and marketing leader with
15+ years of specialist HR Consulting, HR Cloud system selection and
Business Management experience, specialising in global Workforce
Administration, Talent Management and Payroll solutions supported by
Payroll (BPO) and HR (HRO) outsourcing services.
Next generation HR Outsourcing is a global partnership with one
organization that can:
Leveraging the global capabilities of NGA Human Resources, I work with
our clients as they explore their global HR and Payroll requirements.
1. Provide Global Payroll outsourcing Services
My holistic approach to business development includes strategic
and tactical marketing as well as analyst and vendor relationship
management. This marketing background is complimented by my
adoption of Social Selling.
2. Provide HR Outsourcing for HR Administration and Talent
Management regardless of your Hybrid HR IT landscape –SAP
33
The Journal 147 | February-March 2015
Index
OVERWEIGHT WORKERS TIP THE
SCALES ON ‘SICKIE’ RATES
A top heavy workforce can be a real financial drain on a business.
According to a recent German study, overweight workers are much
more likely to take sick days than their slimmer and presumably
healthier workmates.
The study of almost 8000 overweight workers found obese workers
took nearly 90 per cent more sick days than workers considered to
be of ‘normal weight’.
Researchers at the Hamburg Centre for Health Economics concluded
this excessive ‘sickie’ rate had a formidable contribution to industry
lost-productivity costs. Workers classed as overweight but no obese,
meanwhile were found to take about 31 per cent more sick days than
their slimmer colleagues.
The research team concluded that excess weight was a significant
contributing factor to absenteeism, disability, and premature
mortality. Sick leave duration of obese workers was also found to be
more prolonged than non-obese workers.
While there was no shortage of workplace health programs that had
been shown to have varying levels of success, evidence pointing to
financial returns was inconclusive, researchers said.
34
The Journal 147 | February-March 2015
Australian research, however, suggests
successful health programs could see businesses
experience up to three times more productivity, less sick leave
and injuries, as well as higher morale. Research also reveals
healthy workers are fitter, more aware, alert and resilient against
illness, and less likely to sustain manual handling injuries and
strains.
Healthy weight is just one of six health focus areas of the new Get
Healthy at Work service being rolled out by WorkCover NSW in
partnership with NSW Health. http://gethealthyatwork.com.au/
Businesses that register will receive access to all the tools,
resources and support needed to develop a simple workplace
health program, along with free and confidential health checks
to help workers understand their risk of type 2 diabetes and heart
disease.
Source WorkCoverWire Feb 1, 2015
Index
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The Journal 141 | February-March 2014 | Keeping payroll people informed since 1990.
35
Termination and RDOs
Termination
and RDOs
Hi Fair Work
We had a question on whether an employee should receive a
payment for the accrual of Rostered Days Off when an employee is
paid in lieu of notice.
Certainly RDOs accrued up to the last working day will be paid
out – and that is not the question. It relates to these clauses in the
FWA:
117 Requirement for notice of termination or payment in lieu
(2) The employer must not terminate the employee’s
employment unless:
(b) the employer has paid to the employee (or to another person
on the employee’s behalf) payment in lieu of notice of at least
the amount the employer would have been liable to pay to the
employee (or to another person on the employee’s behalf) at the
full rate of pay for the hours the employee would have worked
had the employment continued until the end of the minimum
period of notice.
And
18 Meaning of full rate of pay
36
The Journal 147 | February-March 2015
Index
Termination and RDOs
General meaning
(1) The full rate of pay of a national system employee is the rate
of pay payable to the employee, including all the following:
(a) incentive-based payments and bonuses;
(b) loadings;
(c) monetary allowances;
(d) overtime or penalty rates;
(e) any other separately identifiable amounts.
In relation to accruing for annual leave – we know that an amount
of annual leave is not accrued for the “in lieu of notice” period as
a payment in lieu of notice is not a period of service. But RDOs
are a little different and Jason Low (the TAPS Payroll SME) and I
are having a discussion about the right way to go. Here are our
thoughts:
I used the example of a person working out 4 weeks. They work
3 weeks of 40 hours and 1 week of 32 (working 152 hours). They
have 1 RDO on the 5th day of the 4th week. To fund payment for
the RDO, the person gets paid 3 weeks of 38 hours, and 1 weeks
of 30.4 hours + get paid 7.60 hours of dollars set aside (paid 152
37
The Journal 147 | February-March 2015
hours). In this example, if you were paying 4 weeks in lieu of
notice, you only have to pay them for 152 hours.
I can see Jason’s reasoning as well – if you were giving less than
4 weeks’ notice, and depending on the cycle, you may well have
to pay the person for the full hours of work they would have been
rostered for the in lieu payment and not just 38 hours for each
week.
We would really welcome Fair Work’s opinion on this matter
Thanks
Maureen Martin C.P.S.| Payroll Knowledge Manager
Index
Termination and RDOs
Hi Maureen,
As discussed over the phone, s117(2)(b) of the Fair Work Act 2009
(Cth) specifies:
(2) The employer must not terminate the employee’s
employment unless:
(b) the employer has paid to the employee (or to another person
on the employee’s behalf) payment in lieu of notice of at least
the amount the employer would have been liable to pay to
the employee (or to another person on the employee’s behalf)
at the full rate of pay for the hours the employee would have
worked had the employment continued until the end of the
minimum period of notice.
[our emphasis]
For example, a full-time employee has a 4-week RDO roster as
follows:
Week
Employee works
1
40 hours
2
40 hours
3
40 hours
4
32 hours
If the employee is terminated in week 1 and the employer is
obliged to pay 1 week of notice and the employer chooses to
make payment in lieu of notice, it is our view it should be paid at
40 hours as the employee ‘would have worked’ 40 hours.
Accordingly, it is our view that payment in lieu of notice is paid for
the hours the employee would have worked.
Please do not hesitate to contact us on 03 9954 2931 should you
have any further questions.
In a situation where an employee has a rostered day off (RDO)
arrangement in place and payment is made in lieu of notice,
the employer is required to pay the employee ‘for the hours the
employee would have worked had the employment continued
until the end of the minimum period of notice’.
Kind regards,
38
The Journal 147 | February-March 2015
Research Officer
Practitioner Assist
Fair Work Ombudsman
Index
Example text
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Australasia rely on TAPS’ payroll advice and services.
Payroll has never been more complex!
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and our dedicated PayAssist Helpline.
You can also keep up to date on the critical information you need to know
through our weekly eTAPS email and bi-monthly Journal.
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is Australia's original Association representing the payroll industry.
39
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Membership
The Journal 147 | February-March
2015| Recruitment | Training | PayAssist Helpline
Index
Workers’ Compensation
& Weekly payments
40
The Journal 147 | February-March 2015
Index
Workers’ Compensation
TAPS recently had a call from a member about passing on
Workers’ Compensation payments to injured employees
From a conversation the member had with their insurer it seemed
that there had been a change and the member now had to pay
their injured employees on a weekly basis – but on different days
of the week depending on the day the employee had been injured.
This would have a major disruption to the running of the payroll
and would lead to many out of cycle payments.
TAPS was unaware of any change to payments to injured workers,
but just to make sure, we wrote to NSW WorkCover for an answer:
Dear Lance
Thank you for contacting WorkCover NSW.
As discussed, where a worker is not suffering an economic loss
(is not claiming weekly workers compensation payments) this
does not count as a week of entitlements. e.g. where a worker
is fit for suitable employment full hours and is earning their
pre-injury income then this does not count as a week of weekly
entitlements.
Workers who have partial incapacity as a result of a physical injury
and are not incurring wage loss as a result of the incapacity, do
41
The Journal 147 | February-March 2015
not have an entitlement to weekly compensation benefits. As
there is no entitlement to weekly compensation benefits over
these periods, these periods are not included when calculating
the number of weeks an injured worker has been paid as per Part
3, Division 2 of the Workers Compensation Act 1987.
What is a week?
A week is any 7 days from the first day a worker has an incapacity
(time off work) from a work related injury that results in a worker
receiving weekly payments.
Date Of Injury
1st day of
Incapacity
Week for Calculating
Entitlement Period
Monday
Monday
Monday -Sunday
Monday
Wednesday
Wednesday -Tuesday
The above definition is only for calculating the weeks paid on a
claim to identify which entitlement period the worker falls into. The
employer should continue to pay as per the normal pay cycle.
Any payment during a week, counts as a week of benefits. It can
be two hours, a day or two days, and these do not need to be
consecutive.
For example, an injured worker returns to suitable duties/pre
Index
Workers’ Compensation
injury duties (and is not in receipt of weekly benefits) and then
has a day off due to the injury, then goes to work the day after,
and then has a further day off – this counts as a week of payments
(If occurring within the 1 week as previous example).
A weekly benefit calculation of $nil (zero weekly benefits) is no
longer counted as a week.
For example, in a week where a worker was performing suitable
duties of 30 hours a week and earning above the 80% or 95%
of the PIAWE, the worker would not be paid a weekly payment
because the worker was earnings above the threshold. . This
week would not count as a week for determining periods of
entitlement even though the worker is still seeking treatment and
is being reviewed by the Doctor and has not been cleared for pre
injury duties.
Week
Entitlement
Week 1
$150
Week 2
$150
Week 3
$0
Week 4
$0
Week 5
$150
Total Weeks Calculated:
3 Weeks
42
The Journal 147 | February-March 2015
Note: Scheme Agents are now reviewing all open claims where
a zero weekly benefit had been included in the overall number
of weeks (total weeks of benefits). Closed claims are also being
reviewed if a worker was financially disadvantaged.
Customers are to be referred to the Insurer.
Where an injured worker had zero weekly benefits included in the
overall calculation of total weeks - and they were advised their
ongoing medical and related treatment expenses will be ceasing
in the near future, they will now be entitled to ongoing medical
and related treatment expenses up to 10 July 2015.
For example, if a worker has an open claim and was advised (prior
to 11 July 2014) that their medical entitlements would cease in 12
months as they were no longer receiving weekly benefit , where
zero weekly benefits had been included in the calculation, they
will now receive further medical expenses up to 10 July 2015.
Yours sincerely
WorkCover NSW
Index
Modern Awards
Superannuation on
payslips
43
The Journal 147 | February-March 2015
Index
Superannuation
Further red tape reductions passed by the Senate
Joint media release
The Hon. Josh Frydenberg MP
Assistant Treasurer
and
The Hon. Christian Porter MP
Parliamentary Secretary to the Prime Minister
Many members will remember in 2012 the Government of the
day proposed new payslip rules where an employer had to report
the date they expected to make the super contributions to the
employees fund for super relating to that particular payslip
The changes were due to start on 01/01/2013 but needed
regulations written to detail what actually had to be reported.
Those regulations never came and so employers have been in a
holding pattern ever since – showing super in line with the rules
in the Fair Work Act and regulations but waiting for the changed
rules to commence.
Earlier this year the Government decided that the change to
reporting super on payslips was not necessary:
44
The Journal 147 | February-March 2015
11 February 2015
The Government is getting on with the job of cutting red tape and
regulation.
In February, the Treasury Legislation Amendment (Repeal Day)
Bill 2014 passed the Senate. This Bill is part of the Government’s
commitment to abolish red tape that reduces productivity and
investment, stifles job creation, creates uncertainty and saps
confidence. The Bill:
• Repeals duplicative payslip reporting provisions in
superannuation legislation that were introduced by Labor, but
never made operative. Under the Fair Work Act, employers are
Index
Superannuation
already required to report details of employee superannuation
entitlements that accrued during a particular pay period on an
employee’s payslip.
• Removes a requirement to seek financial sector company
shareholding approval for individuals who have no actual
shareholding in certain financial sector companies, but are
associated with someone who does.
• Simplifies taxation laws, including rewriting the definition of
‘Australia’ into a single location in the tax law for use across all
the tax laws in a simple and coherent form.
Cutting red tape is at the heart of this Government’s mission: to
build a strong and prosperous economy for a safe and secure
Australia.
As a reminder, here are the current payslip requirements from the
Fair Work Regulations:
3.46 Pay slips—content
(1) For paragraph 536(2)(b) of the Act, a pay slip must specify:
45
The Journal 147 | February-March 2015
(a) the employer’s name; and
(b) the employee’s name; and
(c) the period to which the pay slip relates; and
(d) the date on which the payment to which the pay slip relates was
made; and
(e) the gross amount of the payment; and
(f) the net amount of the payment; and
(g) any amount paid to the employee that is a bonus, loading,
allowance, penalty rate, incentive-based payment or other
separately identifiable entitlement; and
(h) on and after 1 January 2010—the Australian Business Number (if
any) of the employer.
(2) If an amount is deducted from the gross amount of the payment,
the pay slip must also include the name, or the name and number,
of the fund or account into which the deduction was paid.
Index
Superannuation
(3) If the employee is paid at an hourly rate of pay, the pay slip must
also include:
(a) the rate of pay for the employee’s ordinary hours (however
described); and
(b) the number of hours in that period for which the employee was
employed at that rate; and
(c) the amount of the payment made at that rate.
(4) If the employee is paid at an annual rate of pay, the pay slip
must also include the rate as at the latest date to which the
payment relates.
or the name and number, of any fund to which the contributions will
be made.
(6) In subregulation (5):
(5) If the employer is required to make superannuation
contributions for the benefit of the employee, the pay slip must also
include:
(a) the amount of each contribution that the employer made during
the period to which the pay slip relates, and the name, or the name
and number, of any fund to which the contribution was made; or
(b) the amounts of contributions that the employer is liable to make
in relation to the period to which the pay slip relates, and the name,
46
The Journal 147 | February-March 2015
contributions does not include a contribution in respect of a defined
benefit interest (within the meaning of the Superannuation Industry
(Supervision) Regulations 1994) in a defined benefit fund (within the
meaning of the Superannuation Industry (Supervision) Act 1993).
Note : Subsection 536(2) of the Act is a civil remedy provision.
Section 558 of the Act and Division 4 of Part 4-1 deal with
infringement notices relating to alleged contraventions of civil
remedy provisions.
Index
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Index
Interpretive Guidance
Interpretive
Guidance
Hi ATO,
I’m hoping someone can assist me with some ETP calculations for
the 15/16 financial year due to the changes coming for preservation
age.
If we use an example of an employee born on 30/11/1960 who is
receiving an Excluded ETP Life Benefit of $70,000 on 15/12/2015
Will this ETP have a withholding rate of 17% or 32%
They will turn 55 in the 15/16 financial year but won’t turn 56 until
the 16/17 financial year.
Dear Maureen,
Thank you for your correspondence which we received on 12
March 2015. We provide you with the following interpretive
guidance which is not binding on the Commissioner.
Preservation Age
The following table outlines when a person reaches their
preservation age:
48
The Journal 147 | February-March 2015
Index
Interpretive Guidance
Date of birth
Preservation age
Before 1 July 1960
55
1 July 1960 – 30 June 1961
56
1 July 1961 – 30 June 1962
57
1 July 1962 – 30 June 1963
58
1 July 1963 – 30 June 1964
59
From 1 July 1964
60
Therefore, where a person is turning 55 between 1 July 2015 and
30 June 2016 it means that they would have been born between
1 July 1960 and 30 June 1961. As per the table above this means
they would have a preservation age of 56.
Withholding tax from employment termination payments (ETPs)
The amount of tax which needs to be withheld from a life benefit
ETP where the amount is under the relevant cap for the year
depends on the preservation age of the recipient.
For ETPs made on or after 1 July 2014 an employer needs to
withhold 17% tax where a taxpayer has reached, or is over their
preservation age, at the end of the financial year in which the
payment is made and 32% where the taxpayer is under their
preservation age at the end of the financial year.
49
The Journal 147 | February-March 2015
For more information on ETP caps search for the page ‘QC 39434’
on the ATO website (www.ato.gov.au) and click on the ‘ETP caps’
tab on the left hand side of the page.
Index
Lodgment News
Managing the Workplace after
the Death of an Employee
50
The Journal 147 | February-March 2015
Index
Death of an Employee
As a manager, one of the most difficult situations you may face
in your career is managing the aftermath of the death of an
employee. Because people experience and respond to trauma
differently, your job can be that much more challenging. The
sudden and permanent absence of a fellow employee who has
shared the ups-and-down of work-life is often deeply stressful and
destabilising. Those who worked closely with the person will feel
they’ve lost a member of their extended family. Even employees
who did not know or did not get on well with the employee may
feel repercussions: an unrelated personal trauma or guilt over
past differences with the person can be exposed and revisited.
Your immediate job is to provide ways for these emotions to be
recognised and channelled in a comfortable, trusted setting.
Contact a workplace assistance counsellor
First, you or Human Resources should contact a workplace
assistance counsellor to facilitate a debriefing session. When
you contact a counsellor, you will be asked to provide relevant
information regarding the death of the employee as well as your
personal assessment of the work group’s reaction to the situation.
Then, a one to two hour debriefing session for employees should
be scheduled. Research has shown that intervention with the
affected work group reduces the stressful impact of someone’s
death.
51
The Journal 147 | February-March 2015
The meeting is typically voluntary with employees encouraged to
attend. During the meeting co-workers who wish to speak should
be given the opportunity to do so, to volunteer expressions of
grief as well as time to share thoughts in remembrance of the
person. Plans for gestures of condolence to family members can
be completed at this time. Doing so helps to satisfy the need to
do something to commemorate the loss. Other employees may
prefer and need one-on-one attention due to the severity of their
grief. Arrangement for private onsite sessions should be made in
advance
Assess Your Needs and Delegate Duties
Assess your own reaction to the news in order to anticipate
the need to involve other resources within the organisation.
Effectively managing what may be an extremely emotional
situation for you and your work group may mean delegating
duties associated with the death to those who are more detached
from the situation. It is important to be realistic - you will not be
able to think of everything or meet every need - this is an unusual
work situation with few protocols. You will, however, want to
thoughtfully consider the following steps:
Staff Notification
There is no way to anticipate how you will learn of the death of
Index
Death of an Employee
one of your employees. You may be the first to know from the
family, but often the news will travel a more circuitous route
and another employee may alert you. No matter how you learn
of the incident, react quickly by notifying immediate staff and
close work friends directly, and the rest of the company through
written communications, such as an email or memorandum.
Remember to contact staff who are away or on leave. Share
whatever information you have and explain that more details will
be forthcoming.
Attending the Funeral or Memorial Service
Arrange time for your staff to attend the funeral or memorial
service if they would like to do so. You may need to hire a
temporary worker to answer phones for a few hours so that
everyone can attend. Attending the memorial service is an
important part of the grieving process.
Remembering the Deceased Employee
The relationship the employee had with co-workers will often
determine how the workplace decides to remember the deceased.
Examples of work group responses include: creating a memorial
bulletin board with photos and other meaningful images, holding
a workplace event such as a luncheon or reception to honour
the deceased employee. Invite family members and close friends
52
The Journal 147 | February-March 2015
outside of work to share their memories with the group. You might
also: create a memory book filled with stories and sentiments
from co-workers to give to the family, have a fundraiser to give a
financial donation to a chosen charity organisation, or write an
article about the employee for the in-house newsletter.
Other Workplace Issues
Some of the more concrete issues which you, as the manager, will
need to address are:
• Desk and personal belongings.
Family members or a close work friend may want to handle the
task of boxing up the individual’s personal belongings.
• Changing the voice mail message, retrieving messages (voice
mail and email), handling inquires intended for the deceased
employee.
These tasks could be shared or rotated among staff to ease the
emotional burden of having to tell callers that the employee has
died. Prepare a brief statement to assist those who reply to calls.
Index
Death of an Employee
• Staff coverage for unfinished or future work assignments.
A temporary, short-term plan can be put into place until a more
permanent decision can be made. It is best to put a temporary
plan into action as soon as possible to lessen the level of anxiety
that is already present among the staff. Make it clear what is
needed and who is responsible.
• Office space.
It is best not to make any abrupt moves in regard to space
changes; people need time to grieve the loss of their co- worker
before seeing his or her workstation dismantled. In a month or so,
there will be more acceptance of the changes which come from
the loss of the co-worker.
• The replacement employee.
Under the best of circumstances, a new employee needs to be
prepared for possible negative comparisons with the deceased
employee. If the deceased was particularly well-liked, the
transition will be even more difficult. It is advisable to give
staff notice of the new employee’s start date, relevant work
background and to prepare them for the change. It is a normal
part of accepting a loss to welcome someone new.
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The Journal 147 | February-March 2015
• Loss of work productivity and motivation.
As the manager, expect the death of an employee to result in
lower productivity and motivation for a brief time. The debriefing
held soon after the announcement will ease the impact of loss,
but it cannot be avoided entirely. Eventually, the work unit will
return to its normal level of functioning.
• Referring to your EAP.
If one to two months pass and you notice that one of your
employees has not returned to his or her normal level of
functioning and appears to still be grieving, talk to that employee,
give them feedback on what you have observed and share your
concerns about them. You may suggest that they seek counselling
from your Employee Assistance Program (EAP. Often, a loss in
one area of someone’s life, as in the loss of a co-worker, triggers
unresolved feelings about previous losses or anticipated losses.
This person may need extra assistance in coping with these
feelings.
Source: http://www.cope-inc.com/org_manager/pma/eedeath.
shtml Used with permission.
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Payroll Tax Fact Sheet
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New Zealand Payroll News
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The Journal 147 | February-March 2015
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All phone numbers in this article
are for NZ callers only.
Changes to Paid Parental Leave
Changes to Paid Parental Leave (PPL) will come into effect on 1
April 2015.
These changes extend the maximum amount payable from 14 to
16 weeks. The changes apply to an employee or self-employed
person if:
• the expected date of delivery of their child is on or after 1 April
2015, but the child is born before that date or;
• the child is born on or after 1 April 2015; or
New Zealand News
Thinking of hiring - now it’s easy to work out
costs
Thinking of hiring staff to get more done, but worried about the
cost? Business.govt.nz’s new “Employee cost calculator” helps
small to medium businesses make confident hiring decisions.
The calculator uses data from government agencies and “Trade
Me Jobs” to tailor employment costs to your industry and the type
of role you’re looking at. You simply click on a couple of boxes
to quickly estimate the fixed and discretionary costs of taking
someone on.
For more information on Paid Parental Leave visit
You can find out what you’re likely to pay straightaway and get
a breakdown of costs like ACC levies, KiwiSaver contributions
and fringe benefit tax. The calculator also shows you the cost
of employing someone in the first year, and a monthly ballpark
figure for your budget. You can try out different scenarios and
email the results to yourself, or save them as a PDF or csv file.
http://www.dol.govt.nz/ppl/
Use the “employee cost calculator” on the business.govt.nz
• in the case of adoption, if the date on which the carer assumes
the care of the child is on or after 1 April 2015.
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The Journal 147 | February-March 2015
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New Zealand News
website: http://www.business.govt.nz/employeecostcalculator/
Business.govt.nz is the first-stop-shop for small businesses
looking for advice, information and tools to help them work with
government. The site is part of the Better for Business programme
delivering better public services for New Zealand.
We’ll continue to keep everyone informed of changes throughout
the year.
Child support is changing
Upcoming changes to benefit and reimbursing
allowances
The way we work out child support assessments will be changing
on 1 April 2015.
Customers will receive notices from mid-February letting them
know the new amount of child support they’ll pay or receive.
In mid-March, we’ll send notices to employers advising how much
to deduct from each pay, starting 1 April 2015.
We’ll be making further changes to improve child support next
year on 1 April 2016. These changes include a new administrative
review ground and a lower maximum age of eligibility. There will
also be new debt and penalty rules to help customers if they fall
behind with payments.
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The Journal 147 | February-March 2015
http://www.ird.govt.nz/childsupport-changes/
Changes coming into effect on 1 April 2015 will affect the
tax treatment of allowances you might pay your employees.
Allowances are payments made to an employee in addition
to their salary or wage and can include payments for
accommodation, food, or clothing. The changes clarify
the tax treatment of employer-provided accommodation,
accommodation payments and other allowances or payments
made by employers to cover employee expenditure.
Find out more detailed information about these changes,
including if you can retrospectively apply the new rules: http://
www.ird.govt.nz/payroll-employers/make-deductions/staffbenefits/
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New Zealand News
Deductions using special tax codes
Do you have an employee using a special tax code? Have you
checked their special tax code certificate recently to make sure it’s
still valid?
If the certificate is still valid, great, keep making deductions at the
specified rate.
KiwiSaver schemes, complying funds or other superannuation
funds.
Your employment agreements will determine if you need
to deduct ESCT from, or pay it on top of, the employer cash
contributions. In most cases you’ll deduct ESCT from the gross
employer cash contributions. However, where the employment
agreement states the employer contribution is a net amount, you
will need to calculate and pay ESCT on top of the net contribution.
If it isn’t valid, start making deductions based on your employee’s
previous Tax code declaration (IR 330) form, or a new IR 330 if
they’ve given you one.
NZPPA Payroll Practice Guide - Special Offer for
TAPS’ Members
You may be deducting too much or too little tax if you’re not using
the right tax code.
NZPPA is the number one independent information and support
resource for payroll in New Zealand.
Find out more information about deductions using special tax
codes.
We provide advice and support for payroll throughout New Zealand and internationally on a daily basis (to anywhere NZ payroll
is processed).
Deducting ESCT from your employer
superannuation cash contributions
ESCT (employer superannuation contribution tax) must be paid
on any employer cash contributions you make to employees’
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The Journal 147 | February-March 2015
The NZPPA Payroll Practice Guide is a payroll resource developed
by payroll experts for payroll people. It is written in plain language
from a payroll perspective, full of practical examples, checklists
and important points to keep in mind when you are working with
and processing payroll.
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New Zealand News
What’s covered in the NZPPA Payroll Practice Guide?
At 300+ pages of material the NZPPA Payroll Practice Guide will
become a valuable resource for any payroll practitioner. There are
three main sections of the guide being:
Payroll information is based on a lot of legislation, practices and
processes all of which, including the interpretation of the legislation, change frequently. How we have designed the NZPPA Payroll
Practice Guide is that in late February early March the main guide
will be released and subscribers to the guide will be able to access
any updates via a link to a password protected area on the NZPPA
website. In the following year we will roll all the updates and any
new 1st April changes into the next edition of the guide. What this
will mean is that subscribers will get the latest updated information as it happens, not a once a year book release or a quarterly
update.
NZPPA members get the NZPPA Payroll Practice Guide at a substantial reduced rate along with all the other benefits of NZPPA
membership.
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The Journal 147 | February-March 2015
1. How to run an effective payroll. Payroll structure (all aspects of
the Payroll Office), Payroll Practice and Process, Payroll Staff,
Measuring Payroll Effectiveness and performance.
2. Payroll Law. The guide will cover legislation that impacts on
payroll divided into two main areas being employment and tax
related legislation. This is the largest section of the guide and is
in depth and comprehensive.
3. Payroll Selection. This guide applies to any payroll situation
from manually processed, to using a computerised payroll
application or using an outsourced provider. The guide will provide the advantages and disadvantaged for each type of payroll
and provide guidance on matching the best payroll solution to
your business environment.
Other features of the practice guide:
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New Zealand News
• The guide is filled with fully worked calculations, references an
links, check lists and sample forms.
• 2015 Public Holiday Guide along with School Term Dates.
• Definitions of terms and explanations in plain language related
to payroll are provided throughout the guide.
Getting the latest updates as they happen!
Changes in payroll happen often and how the NZPPA Payroll
Practice Guide will be kept up to date is through having subscribers given a logon to a portal on the NZPPA website where they can
access any updates. All subscribers will be emailed when new
updates are available.
If the subscription is continued to the next year a 10% discount
will apply on the standard price.
Please Note: Australian orders add an additional $15 postage fee
on the above costs.
How to order:
The NZPPA Payroll Practice Guide will be officially released on the
13 March 2015 (Black Friday!).
TAPS MEMBERS have a special offer
- see below on how to access it.
Be the first to get your copy, you can pre-order you copy now!!
Cost of the NZPPA Payroll Practice Guide
• NZPPA members: $175 +GST (includes the initial Guide release
edition and access to updates up to the next years release). If the
subscription is continued to the next year a 10% discount will
apply on the standard price.
• NZPPA Non-member: $475 + GST (includes the initial Guide release edition and access to updates up to the next years release).
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The Journal 147 | February-March 2015
• Click here if you want to subscribe (NZ)
• Click here if you want to subscribe (Australia) – TAPS MEMBERS
use this link and take the overseas delivery for NZPPA Non-members. Insert TAPS as the discount code to get the book for the
same price as NZPPA members
Get the Payroll Resource written by the Payroll Experts!
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